1. Presenter: Barry Taylor ADVISORY COUNCIL 29 MAY 2013 Short Term Feedback

2. The past year

3. Binder Agreements Regulations concluded Take aways: – Principles based – Binder Fees permitted – Responsible attitudes Next steps: – Guidelines to Insurers on implementation – Guidelines on moving of books of business The past year:

4. Outsourced Agreements (Directive 159) Applicable to Insurers and effective Take aways: – Fee allowed for issuing policies – Cost recovery for non intermediary service activities The past year (cont):

5. Permissible Remuneration: – Commission (capped as per STIA/ paid by Insurer) – Binder Fees (Binder regulations / paid by Insurer) – Broker/policy fee ( Sec 8(5)STIA moving to Regulations / paid by policyholder) – Outsourced fee for non intermediary services (paid by insurer or to broker by a third party) NB. There can be NO duplication of remuneration The past year (cont):

6. Sec 8(2)d – Placement of business with non registered insurers – Client protection vs. market protection SASRIA Commission – Increased by 1% effective I July VAT Review with SARS Aggregators /”pseudo” aggregators – FSB representation – Firmer line by FSB – we need to provide detail The past year (cont):

7. Industry sustainability of Insurance forum – Environmental, Social and Governance factors ST Ombud liaison – Industry stats now published – Isabel Jones award dispensed with STRIDE – switch live and ready for transactions FAIS Ombuds Fee (no longer) The past year (cont):

8. Other involvement: – IDS – Windscreen glass debacle – Demarcation – Finance and Motor Vehicle Systems (FIVS) Industry initiative including banks and finance houses Collection of vehicle data such as ownership, insured status and claims data The past year (cont):

9. Ongoing regulatory participation and influence – G20 pressures “Cost of doing business” project STRIDE Compulsory Third Party (motor) – continue with the pressure TCF Twin Peaks Solvency Assessment and Management (2016) 2013/4

10. “What is our Raison d’etre ?” What is our purpose? Understand what our businesses are about! The challenge

11. STOP MAKING EXCUSES JUST BE PROACTIVE (bill price/Sunday Times 9 May 2010)  Improvement happens when we are willing to evolve and grow  what needs to change around here to improve the way we do things for our customers?

12. FIA??? SAIA??? Direct Marketers??? Where is market innovation coming from?

13. DO WE NEED TO REFOCUS AND RE- ENERGISE IN GETTING BACK TO OUR CORE FUNCTION, “BECOMING SMART INSURANCE ADVISERS” AGAIN?

14. Consider the sustainability of our markets?

15. How are we going to achieve without attracting skills and talents?

16. Despite the FAIS qualification regime why are the levels of practical knowledge so poor? How serious are we about taking ourselves to another level of service excellence? Industry Human Capital Initiative

17. Any questions?

18. Thank you