DEMISTIFYING LIFE INSUANCE 25 – 27 November 2015 Lome - Togo

PANEL DISCUSSIONS ON; LIFE INSURANCE BUSINESS STAKEHOLDERS EXPECTATION C. C. BRUCE JNR EXECUTIVE DIRECTOR – ENTERPRISE LIFE

Outline 1. Understanding Stakeholders Interests 2. Stakeholder Mapping 3. Promoter - Stakeholders 4. Life Assurance Value Chain Product Design Distribution Underwriting Policy Service Claims Management 5. Value of Life Assurance Stakeholders

Understanding Stakeholders Interests  Stakeholder can be defined as a group of people who can be crucially affected or can crucially affect the organisation  We do not have a sole interest group  The various stakeholders may have converging or conflicting interest  Deciding which is priority is one of the challenges in managing an ethical company

High Influence Low Interest Latents High Influence High Interest Promoters Low Influence Low Interest Apathetics Low Influence High Interest Defenders Stakeholder Mapping

Promoter - Stakeholders Viability of the company during duration of policy Satisfying service levels Policyholder Expect good returns from investment Directors / Shareholders Continuous employment and career progression Good remuneration Management Balancing of policyholder protection and market development Regulators

Life Assurance Value Chain Product Design Defines the strategic positioning of company Distribution Function of getting product to market Face and Heart of Life Assurance Underwriting Performs the “Gate Keeper” role Policy Service Policy maintenance function Claim Payment of both claims and maturity benefits

Policyholders Interest Management Interest Needs based design Affordable Competitive Returns Needs based design Good Margins Shareholders Regulators Interest Product profitability Actuarially sound Wide-range products to develop market Key Stakeholder Interest Product Design

Policyholders Interest Management Interest Full disclosure No mis-selling Sales process improvement Focus on sales volume Shareholders Interest Regulators Interest Top line growth Ethical behaviours No mis-selling Professional behaviours Key Stakeholder Interest Distribution

Policyholders Interest Management Interest Minimal underwriting requirement Adequate information Accurate underwriting decision Shareholders Interest Regulators Interest Ensure solvency Ensure fairness to policyholders Key Stakeholder Interest Underwriting

Policyholders Interest Management Interest Simple policy wording Satisfying customer experience Efficient policy administration system Managing cost Increasing customer satisfaction Shareholders Interest Regulators Interest Ensure continuous solvency Fair terms and conditions Complaints handled fairly Key Stakeholder Interest Policy Service

Policyholders Interest Management Interest Shorter claims process Prompt claims payment Settle genuine claims Improve access to information Shareholders Interest Regulators Interest Right governance system Treat policyholders fairly Maintain good reputation of industry Key Stakeholder Interest Claims Management

Value of Life Assurance Stakeholders  Introduces varied perspectives and new ideas  Prevents insurers from being blindsided by policyholder concerns  Creates a certain level of fairness  Improves credibility and confidence in the industry  Improves success of industry

THANK YOU