SAsRIA
MONTHLY FEEEDER
sEPTEMBER
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Sasria Monthly Feeder Issue 1 September 2011
Inside the issue
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Claims update
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Finance
The 10 Stakeholder In 14 The Community Business 18 Support Division
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Industry News
23 FUN TIMES
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A note from
the Managing Director
Mr. Cedric Masondo
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The Biggest Loser has been launched even I have joined. I en-courage participants to be committed. The initiative is not only about losing weight and/or winning the grand prize but also looking at the wellness aspect. May the Biggest Loser win. Happy Birthday to people celebrating their birthdays in Octo-ber. Wishing you many We have embarked on a number of projects happy returns. that will improve our effi-ciency and customer service. One of those is BPR, this project is close to completion. I would like to express our heartfelt ap-preciation and gratitude for your participation and coopera-tion since the beginning of the project. This is what I call team work! would like to welcome you to the new and fresh Sasria Monthly Feeder. The purpose of the Sasria Monthly Feeder is to provide information to all Sasria personnel and to encourage staff to make suggestions and put for-ward comments and ideas that are relevant to Sasria.
Another project is Living the talk, we have made great strides on this project as well. I am positive that we now have a common understanding of the organizational values. See you all at the follow up workshop on the 30th of September.
“I am positive that we now have a common understanding of the organizational values.�
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Inside Finance
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Claims Update
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s at the end of August 2011 the claims outstanding were estimated at R238m. 61% of these claims were strike related, 29% were non political riot claims, 8% were political riot claims and 2% were labour disturbance claim. There has been an increase in the number of claims received with a particular increase in motor claims. This is due to the motor class of business
being hugely impacted during the recent strikes; furthermore it has been noted that there is an increase in total loss claims resulting in an escalation in the claims expenses.
“an increase in the number of claims received with a particular increase in motor claims.�
61%
Strike Related
29%
None Political
8%
Political Labour disturbance
2%
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FInancial Speaking
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he company has generated gross written premiums of R425.6 million (2010: 397.8million) which is 7% growth compared to the same period of the previous year. This is an indication that Sasria‟s premium income has reached its plato. We will have to focus our efforts on marketing our products, improving our cus-tomer relations and research and developing new products. The net underwriting profit of R189.6 million (2010: R107.5 million) has improved by 76.3% compared to the previous year. The main reason for this increase is a decline in gross claims incurred which came in at R43,9 million compared to R 142.9 million in the previous year.
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£
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The gross written premium written for the period is on par with the budget for the period ending 31 July 2011. The investment portfolio generated a net return of 64.1 million (2010: 69.8 million) for the period ending 31 July 2011.
“The investment portfolio generated a net return of 64.1 million ”
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sTRATEGIC Projects Update on the SAM Project:
he FSB has adopted a new solvency regime for the South African long-term and short-term insurance industries in order to bring it in line with international standards. This will be carried out under the new Solvency As-sessment and Management (SAM) banner.
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To this end, Sasria has appointed a service provider (Deloitte Actuarial Services) to assist with the project. Sas-ria has completed QIS1 and like all other insurance companies we are working hard to meet the 2014 FSB deadline of complying and implementation of SAM.
The main objective of the SAM initiative is to protect the policyholder and beneficiaries by aligning the capital requirements with the underlying risk of the insurer. Secondary benefits include developing a risk-based ap-proach to supervision, maintenance of financial stability and provision of incentives to insurers to adopt more sophisticated risk monitoring and management tools.
This resulted in a list of approximately 26 high-level initiatives and projects to make the company SAM com-pliant. The project is on schedule and on budget. The proposed implementation date for the standardised approach for all short-term insurers is January 2014 and we are working towards achieving this deadline.
“we are working hard to meet the 2014 FSB deadline of complying and implementation of SAM.�
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on to finance project
Update on the SAM Project:
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asria has initiated a business reengineering process to optimise our efficiency. To this end, we have com-pleted the “as-is” process documentation phase covering 106 internal business processes across 12 depart-ments. In this year, we will define the “to-be” objectives and in doing so will optimise our processes to the best possible functional-, organisational- and operational levels.
“Currently, the BPR (Phase 3) project is 85% complete.” Update on the CWP Project:
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To date the 5th set of workshops (Information systems functional breakdown) were concluded this week. One set of workshops remain – the Mapping of processes to Information Systems – this phase of the project will be completed by the 28th September 2011. Currently, the BPR (Phase 3) project is 85% complete. The project is on schedule and on budget. Thank you to everybody for your input and time into this project! We will all benefit from the outcome.
“Currently there are 17 CWP agency users with 1 agent using the eCoupon system”
Sasria has developed a Customer Web Portal (CWP) to provide a web interface for the administration of claims, coupons, group schemes processing and communication between Sasria and its network of Agent companies. The CWP system was integrated into Sasria‟s Insurance Management System (IMS).
to claims. CWP is a tool we have to use in order for us to change the industry‟s perception. We depend on our claims division to use this tool to its fullest and show the industry we are committed to servicing our customers.
Currently there are 17 CWP agency users with 1 agent using the eCoupon system. This project (Phase 2) is on track (59% complete) and under budget. Phase 3, rollout to the captives and have not yet been approved. As you all are aware Sasria‟s reputation in the industry is tainted when it comes
We have received a very positive response from the industry regarding CWP. Quoting an e-mail we received from Zanele Zulu, Claims Manager at Hollard “Amazing, claims are going much quicker when I load them on the CWP. Thanks again for making things work smoother.”
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The Stakeholder O
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Stakeholder Management F
ollowing the realignment of the organisational structure, a new division was estab-lished called Stakeholder Management Division. The division is responsible for man-aging relations with all stakeholders, improving the brand and product awareness, as well as ensuing that the company gains mileage out of CSI initiatives. The division is made up of three departments; Customer Relationship Management, Marketing and Communications, and Corporate Social Investments. We have recently published an article on Risk SA regarding Sasria cover for municipali-ties. We also participated in industry events through sponsorships and attendance of the IIG Charity Auction, IIG Centenary Dinner and the IISA Gala Dinner in Sun City 20 product training sessions have been conducted since the beginning of the financial year, this is part of the product awareness to the industry. Internal product training sessions were also conducted, remember that the Sasria Quiz (The Brain of Sasria) is coming up in October, so get cracking on all that you have been taught‌ the informa-tion on the Sasria values may just be part of the quiz.
We have recently published an article on Risk SA regarding Sasria cover
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Stakeholder Management engagements Marketing project
Ongoing projects The success of this Newsletter is in Marketing. The newsletter to staff will be distributed bi-monthly and the one to stakeholders will be distributed quarterly. Marketing is also behind the Human Capital initiatives! Information update on Ulwazi.
Internal brand CI Marketing will be conducting an internal brand refreshment where you will be expected to present all the documents you use as a department; internally and/or externally. The purpose of this is to harmonise the Sasria brand and where need be, documents will be refreshed. A plan is to be drafted and the project will kick start in October.
Upcoming events Sasria/IIG Golf Day - Friday, 14 October 2011 @ Bryanston Country Club Chilla Friday (Sasria Brain of Sasria) - Friday, 28 October 2011 @ Chillaz
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iN THE cOMMUNITY
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“Ten bursaries were extended to students doing 2nd year degree (through NSFAS) within the Finance Faculty.”
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number of CSI initiatives with a focus on education have been embarked on since April 2011. Sasria established an actuarial development program in 2003. 71 students have graduated and 6 qualified as actuaries since inception. Sasria has established a Maths and Science Centre in part-nership with the University of Johannesburg. The focus is on improving the Maths and Science skills for teachers and learners. Ten bursaries were extended to students doing 2nd year degree (through NSFAS) within the Finance Faculty. An-other bursary granted to an ex „employee‟ – learner, this student is doing 2nd year level in Supply Chain Manage-ment. The last bursary was granted to a destitute matricu-lant, this student is doing a 1st year in Public Relations. Sasria has also invested in infrastructure development in order to improve the conditions under which learners are being taught as well as leadership development in poor performing schools. To date a primary school in Dayveton called Enkangala Primary School has been renovated to acceptable standards and made comfortable for learners and teachers.
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asria has also partnered with SCI-BONO through the Gauteng Department of Education (GDE) in implementing one of the de-partment’s strategic priorities i.e. Gauteng Maths, Science and Technology Education Strategy and the Gauteng Provincial Literacy and Numeracy Strategy.
Sasria key projects involvement: 1. Mobile Science and Maths Laboratory – The mobile lab reaches 26 schools in rotation. Sasria is spon-soring the Maths component of this project. 2. Blended learning programme – The programme runs once a week in 15 districts to grade 12 learners on a walk-in basis. About 12 000 learners are reached per week.
“To date a primary school in Dayveton called Enkangala Primary School has been renovated to acceptable standards and made comfortable for learners and teachers.”
3. Senior Secondary Improvement about 48 000 Grade 12 learners every Saturday in 110 sites through-out Gauteng. Sasria has adopted a site in Thembisa where almost 600 learners were reached during the June school holidays Programme (SSIP) – provides supplementary tuition too. 4. Finance week – The programme runs for a week and involves about 8 000 learners. Learners have an opportunity to apply for bursaries from various institutions. In the community
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Business Support Division O
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Business Support Division
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n “engaged employee” is one who is fully involved in, and enthusiastic about their work, and thus will act in a way that furthers their organization’s interests. Sasria is committed in up skilling employees and making sure that while within Sasria, they are motivated. Sasria will conduct the Employee Engagement Survey where consultants are engaged to assist. A presentation by Payspace consultant has been made to us. It is very exciting to now confirm that this is the first initiative that Sasria has taken to save the “world”. Payspace will help us go paperless and in that case - more trees are being saved!
to Living the talk that you need to be shared with staff should be sent to Mobs and Comms. Mobs and Comms will also be proactive in getting information to share by communicating with the NWT leads on a monthly basis and this will feed onto the Sasria Monthly Feeder.
Sasria Limited fully subscribes to the Prevention and Combating of Corrupt Activities Act, 12 of 2004.In terms of the Act it is an offence for an official to accept any form of gratification from another person, whether for own benefit or the benefit of another, in order to act in a manner, among others - Designed to achieve unjustified results Amounts to unauthorized / improper In response to changes in the global business inducement to do or not to do anything Amounts environment, Sasria will embark on a Talent to illegal, dishonest, biased or misuse or selling Management project to manage employees‟ of information or material acquired in the exercise talent, ensuring that employees have necessary of duties. Amounts to abuse of authority, breach skills to perform their duties . “The topic at the of trust or violation of legal duty or set of rules. top of most HC managers’ minds is what is driving this talent and how can HC figure out Any person holding a position of authority who ways to hang onto it”. knows or reasonably ought to have known or suspected that any other person has committed A workshop on Living the talk happened on certain corrupt transaction(s) who fails to report Friday, 30 September. Where the MD thanked such knowledge or suspi-cion to the police is staff for participation in all the projects including guilty of an offence. Such corrupt transactions this one and also highlighted the importance of also include theft, fraud, extortion, for-gery or Sasria employees to “Live the Talk”. Updates uttering a forged document involving an amount have been given from each Natural Work Team on of R100 000, 00 or more. projects they are engaged in. In-novations NWT As the saying goes “the gut is the new brain” in will move to Karen and Customer Centricity NWT cases of uncertainty ask for help. will move to Thokozile who will lead it together with Professionalism NWT. Information relating
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Industry News
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Industry News FSB: short term insurance industry
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ccording to the FSB the short this approach the net premium of term insurance industry has been most insurers increased as well as the focusing, with some success, on underwriting profit. profit-ability rather than growth. With
SAIA establishes a task team
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he South African Insurance Association (SAIA) has established a task team to look into alter-native distribution channels for micro insurance this is following the request by National Treasury to explore alternative distribution channels. The sustainability of short term insurance has been a discussion at the Strategic Forum where objectives were set for the Forum and a number of initiatives prioritized. Sasria is part of both the micro insurance committee and the strategic forum. At the SAIA Commercial Technical committee it was highlighted that the FSB has issued a directive with regards to outsourcing insurance business, the Legal committee at SAIA is looking into the matter. It was noted that the directive would have an impact on Sasria due to its business model.
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FUN TIMES
October Ayanda, 5 Andrew, 10 Nomsa, 13 Cedric, 20 Karen, 31
Competition! The Amabhokobhoko raffle Keep supporting the BIGGEST LOSERS!
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