Leveraging Partnerships to Provide Access to Insurance: the Hollard Experience. Mandla Shezi

Transcription

1 Leveraging Partnerships to Provide Access to Insurance: the Hollard Experience Mandla Shezi

2 Introduction to Hollard and the business structure Hollard was founded in 1980, and since then we have been providing pioneering insurance and risk solutions through innovative problem solving and rock-solid partnerships. Rejecting tired convention, we ve consistently delivered smart solutions that make everyone a winner Hollard is South Africa s largest independent and privately owned insurance group and now comprises insurance businesses throughout Africa as well as Europe, India, China, Indonesia and Australia Hollard Life Life, investment, and mass market products through affinity partners, brokers and agents, and direct Hollard Insure Motor and household, and Corporate and Commercial through brokers and direct Hollard Partner Solutions Short-term and life products delivered through partnerships with retailers, banks, motor, and others Hollard International (HINT) Hollard s Afro-global family outside South Africa

3 At Hollard, partnership is part of our DNA and is a cornerstone of our Group Purpose

4 We have an extensive track record in partnering across various industries, and targeting customers across income levels Flexible Accident & Sickness Acceptances (Pty) Ltd Legal Power and Protection FINANCIAL SERVICES Toyota Financial Services (South Africa) (Pty) Ltd. An Authorised Financial Services and Registered Credit Provider. NCRCP62. Reg. No. 1982/010082/07

5 We know what it takes in the emerging, and mass markets and we need to partner to get these right 1. 1 Competitors are non-traditional and everyone needs to adapt 2. A brand must be a member of the community Highly relevant, omni-channel distribution and engagement 4. Advanced analytics 4 Becom e grand parents Retire Pass away Child Born Child Grows up Child attends Primary school Child Attends high school 5. 5 Provide the most important products and services not necessarily the most profitable Loved one passes away After school training 6. 6 Truly customer-centric strategy 7. 7 Credit, savings, investment, and risk needs and products are interchangeable 8. 8 It will soon be extremely difficult to be a mono-line player Make home improv ements Purchas e house or flat Get married Get engaged Move in w partn/ out of home Change jobs First job

6 We already partner for success, expertise, and much more as we will in future parts of the business HAD a Partnership Model DIRECT AFFINITIES HM MOBILE Physical Sales Admin Callcentre Lead Providers Retailers Nonretailers Hollard Money Hollard Mobile KDO TBFS MSA 3 WAY Edcon DA DA Digital Planet Malwande Wasserfall Finrite IUA Cover Direct OLICO Ackermans KC Funeral Parlours ABIL Bruma Refurbishers MNOs Esurity Franchisees DCH SABC Truworths IDM Rewards Franchisees Technology: MIP, Synthesis, Easipol, PayDNA 6

7 By leveraging our full partner ecosystem, we can create a unique CVP for our market MIP LOBS Easipol LOBS Front-end system Retailers Affinities Pay DNA Cellphone Lead providers Call centres Full Partner Ecosystem Rewards and loyalty partners Administrators Training companies Franchisees

8 In both Direct and Partner, we partner for distribution with outsourced branches, kiosks, and funeral parlour partnerships Physical presence Virtual/Call centres ATL direct response BTL direct acquisition Digital Hollard Retail agency force Agents within stores Edcon Kaizer Chiefs Game Generic databases Low cost, High Touch, High Tech Sales Agency Force Field agents and CC Multiple agency forces Retail partner account bases Call centres and point of sale Funeral homes and parlours Retail partner cash bases Field agents Lending partners Bank/ lending partner bases Hollard branches Performance Marketing Branches Hollard branches Web and Mobi Hollard Passive sales Blister packs Pep Boxer FMCI Stores PnP, etc With the recent re-organisation, Hollard Life now includes additional agents, brokers, and other physical channels

9 We have successfully partnered with a wide range of partners from different sectors Retailers Funeral Parlour JVs Credit Providers Radio Stations Clothing Retailers Edcon Ackermans Truworths Two Mountains 21 st Century Covision Martin s B3 350k in-force Direct Axis 370k in-force Ukhozi FM New Fast-moving Consumer Insurance (FMCI) Boxer Pick n Pay Appliance & Office Game Pharmacy Clicks >4.5M in-force Sport Affinities Kaizer Chiefs 60k in-force Debt Management IDM 60k in-force Group Schemes TBFS Funeral Parlours Churches Stokvels Other affinity groups 200k in-force

10 Our direct physical presence is built on branch franchisee partnerships Hollard Life s Physical Presence: Retail Branches (137+) Boxer Mini-branches (28) Covision Branches (5) + PNP Mini-branches (1) KC branches (9) Admin branches (~15) 10

11 Funeral Parlours are and will continue to be key to our strategy Parlour In-force Sales (pm) Outlets Annual GWP Existing Funeral Parlour Partners 25k 2k-3k 7 R 65M 27k ~ R 39M 100k 2.5k 48 R 102M 100k 1k 75 R 80M WIP 50k 2k 36 R 58M 350k 8k-9k 191 R 344M

12 Our FMCI strategy is equally essential to our future Existing FMCI Partners Currently in 28/200 stores 1,000 policies pm ~2 SPS per day Currently in 1/770 stores (7 by December) WIP FMCI Partner Mass Discounters 392 stores Mass Warehouse Mass Build Mass Cash Already in 80/120 Game stores Mass Cash Wholesale Mass Cash Retail 12

13 Our experience has highlighted critical success factors for our various partnerships Partner s target customer High brand affinity which will stretch to insurance Product take-up propensity & proposition Appropriate sales method and channel Partner alignment and resourcing A Win-Win-Win situation and nothing less Shared values and vision Measurements of success

14 All of this is underpinned by consumer education also run for us by a Hollard partner

15 The NTU rate of trained policies is much better than total NTU rate but it s contribution to improving the NTU rate is marginal Proportion of HDS funeral sales 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% NTU rate CE volume Non-CE volume CE NTU Total NTU NTU if no CE 15

16 Thank you