FST Media Technology & Innovation – the Future of Insurance & Wealth Management Conference Four Pillars of the CIO Role Strategy, Governance, Risk and Delivery Vivek Bhatia, Chief Information Officer Sydney, 27 March 2008

2 What changes are impacting the industry? ChangeEffect Consolidation of insurers and distributors Scale economies driving down price Leveraging of distribution International best practice Insurers acquiring distribution Blurring of boundaries of traditional models Cost efficiencies Compliance and independence Changing demographics and purchasing trends Workforce change Internet – transactions and marketing Private Equity and Hedge Funds Pressure on listed company managers Absolute focus on shareholder returns Labour market trendsFull employment driving wage inflation Competition for talent

3 Continuous change for us INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY Changing business and technology landscape Thought leadership Training & Development Emphasis on business acumen Exceeding customer expectations Partnership

4 Objective business-enabling strategies To provide a satisfactory return to shareholders Key Pillars for the CIO to help achieve the objective – strong governance framework sound risk management reliable delivery capability

5 Key Priorities Customer service Operational Excellence Risk Management Best team Strategy doing the right things Governance doing them right Day to Day Actions Profitable growth

Business enabling strategies

7 strategies Results of a CIO leadership survey conducted by IBM, Harvard & MIT : CIOs felt transformative power of technology was not recognised by CEOs 2007 : Increasingly CEOs and the Board recognised technology as being central to innovation and competitive advantage and a significant driver to business value Three main items on the agenda Performance improvement to external partnering, market expansion and internal efficiency Develop high potential IT staff to counter shortfall in talent Extend the level collaboration to the lines of business i.e. greater IT- Business alignment

8 strategies

Strong governance framework

10 governance is critical Measurement of performance Financial discipline Partnering to achieve business case outcome Efficiency of end-to-end function Critical issues / High criticality / Not desirable Some issues / Medium criticality No issues / Low criticality / Very desirable Confidence Low - Medium - High - Confidence Low - Medium - High - Confidence Low - Medium - High -

Sound risk management

12 risk is the name of the game Sustainability De-risking the organisation Measurement of risk Defining appetite Controls and ownership Information Security Disaster Recovery Planning Business Continuity Planning Regulatory Compliance Protection & promotion of brand

13 risk is the name of the game

Reliable delivery capability

15 operational excellence Drive competitor and market advantage Best in class cost structure Internal systems & processes Measurement of service Emphasis on customer service Challenge convention to drive change consistently “be patient in planning, but relentless in execution”

16 operational excellence

17 leaving thoughts

18 Thank You