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Published byChastity Black Modified over 9 years ago
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Financing the Risks of Natural Disasters World Bank Conference June 2003
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AGENDA The market – Why? The market – How? An emerging market – The informal sector Risks and Rewards Conclusion WORLD BANK CONFERENCE
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STRATEGY Anticipation of future trends and their applications on society as well as on the company. Understanding of the company’s strategic capabilities that can be leveraged into these trends. TRENDS Rapid urbanisation Breakdown of the extended family THE MARKET – WHY?
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STRATEGIC CAPABILITIES Low cost admin Distribution management OPPORTUNITY Few players Significant growth potential THE MARKET – WHY?
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About our markets
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THE MARKET – HOW? Product design Product distribution Premium collection Benefit delivery Costs/costs/costs
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THE MARKET – HOW? Product design CUSTOMER Culturally relevant – wider family Affordable – low minimum premiums Understandable – pre-packaged Re-enforce promise – more claims COMPANY Easy to administer – underwriting, claims processing Manage the risk – wider family, waiting periods, steps sums assured
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THE MARKET – HOW? Product distribution Formula driven – doing the basics right Mainly into paypoints - work site marketing Group presentations - individual sales Productivity – great expectations Zoning
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THE MARKET – HOW? Premium collection Salary deduction – early is good Paypoint relationships Collection diversification Commercial Cash VDDO Technology – simpler, better, faster
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THE MARKET – HOW? Benefit Delivery “Today's claims payment secures tomorrow’s new business ” DELIVERY ALLIANCES Speed – immediate payment Convenience – near the customer Seamless service – one call “money or the box” SOME INTERESTING FACTS Average payout $650 98% of claims paid by EFT 95% of claims paid within 24 hours
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AN EMERGING MARKET – THE IMFORMAL SECTOR Booklet based scheme through affinity group (usually Church) Weekly paid premium collected through Church Cover only continues if “book” stamped ALA provides “Insurance Licence”
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THE RISKS Political Economic Social Aids Death Certificates Financial Currency Risk Exchange Control
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THE REWARDS New Business -20% CAGR Recurring Premium Income-35% CAGR Total Assets -44% CAGR Dividend -19% CAGR Share Price-21% CAGR
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CONCLUSION The need exists The need can be met …. and profitably THROUGH Focus Passion Understanding
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Thank You
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