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Financial Services pillar |
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The Financial Services division provides customers with a broad range of financial services and products, including vehicle financing (via alliances), insurance and maintenance plans, it leverages off Imperial‘s strong distribution and retail network capability in the motor vehicle industry. It also provides niche life and short-term insurance products selectively through channels outside Imperial. It operates in South Africa, Botswana and Lesotho. Key data – Financial Services
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Risks, opportunities and performance drivers | ||||
Risks | Opportunities | Performance drivers | ||
Volatile investment markets | Leverage further synergies between group companies | Distribution channels and client retention | ||
Soft short-term underwriting market | Continue to launch innovative new products in the motor value chain | Customer satisfaction and service levels | ||
Increased costs from regulation | Growing relationships with business partners including banks | Maximising return on capital | ||
Higher policy lapse rates from increased consumer indebtedness | Continued expansion into lower- and middle-income groups | Product innovation | ||
Slowdown in vehicle sales | Growth of Ariva and alternative vehicle financing opportunities | Penetration levels | ||
Deterioration of credit markets | Growth in the fleet business | Underwriting and claims management | ||
Growth of life business through new affinity channels |
Our people
Regent’s people development focus is on growing management and leadership capability. During the year, 113 managers participated in training programmes that target the development of a robust leadership and succession pipeline. These programmes also target the achievement of transformation objectives.
LiquidCapital delivered training in various areas of development, including product, sales, administration support, technical skills, legislation and executive training. The business dedicated 17 884 man hours to training employees during the year, which equates to 67 hours per person per annum.
Our impact on the environment
The financial services industry has an inherently low environmental impact. However, businesses within the division are engaged in energy-efficiency, water-saving and waste-recycling initiatives to reduce their footprint wherever possible.
During the year Regent built a dedicated waste management area and launched a programme to encourage a greater culture of recycling among employees. It fitted energy-efficient lighting and invested in an eco-waterless car wash system at various premises.
LiquidCapital runs a paper recycling project and in the year ahead will add plastic, glass and other materials to its waste recycling streams. It should also be noted that well-maintained vehicles, which are serviced regularly are generally more fuel efficient and that the increasing sales of service and maintenance plans are expected to have an indirect but positive impact on the environment.
Commitment to our customers
In the year under review Regent invested significantly in programmes that underpin the Treating Customers Fairly (TCF) programme. Key components include change to product design and ensuring customer service excellence. The programme has delivered tangible improvements in complaints handling, call centre abandonment rates and customer engagement.
LiquidCapital ensures compliance with all legislative requirements through customer call validation, quarterly sales script reviews, daily live auditing on all sales calls, independent outsourced quality audits and annual compliance reports submitted to the Financial Services Board.
Customer privacy is key to both businesses, which have invested in various initiatives to ensure compliance with the new Protection of Private Information Act. These include data warehousing and outsourced data security audits.
In the year ahead Regent will focus on improving loss ratios, which will be supported by the business’ recent exit from certain underperforming books of business. While we cannot predict the performance of investment markets and our investment returns, we expect our underwriting performance to improve.
The growth in the underlying books of business in LiquidCapital is expected to be impacted slightly by the slower growth in the new vehicle market. However, its financial performance will be underpinned by the strong annuity revenue streams that flow from the installed base of business it has generated in the last few years. Policy growth is expected to continue through increased penetration and retention rates as well as growth through channel development particularly in the business to consumer space.
– | Increase market share in motor and non-motor-related insurance by leveraging off the Imperial dealer network |
– | Continue to grow our life insurance business in the emerging market |
– | Seek new strategic partnerships where we can leverage off respective skills sets |
– | Expand product ranges and improve market penetration |
– | Continue to investigate alternative motor vehicle financing opportunities |
– | Treating Customers Fairly is now integrated into the core strategy of the Financial Services division |
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