Intelligent Insurance Financial Services The South African Insurance Industry Survey 2017 August 2017 kpmg.co.za Intelligent Insurance Today’s leading financial services companies are operating in a new and more complex environment; one where the fundamental definition of how customers experience and interact with an insurer is being challenged and redefined. This is further complicated by millennials’ dramatically different buying patterns, alternate channels and changing expectations for consumer and digital experiences. This new consumer driven/ customer centric business model is one that many insurers recognise and are striving to adopt in order to win and retain customers. The South African Insurance Industry Survey 2017 Introduction 1 King Hammurabi had the coolest beard 3 Behavioural Economics Perception is King to reality's court Jester 9 The role of financial services in society 19 IFRS17 - Left out in the cold before it even gets a foot in the door? 27 Enhancing the strategic value of Internal audit 31 Will the surge of Millenials challenge traditional insurance? 37 Y Robot? Insurance on Demand, Virtual Agent's and Telematics . 43 Insurance evolved in the Digital Age 49 Changes to VAT compliance rules 53 Expense allocation – changes to Life Insurance Tax 57 ORSA A continuous improvement cycle 61 Microinsurance in Africa 67 Incremental Implementation towards a Market Conduct Framework 73 Short-term Insurance Industry results 79 Long-term Insurance Industry results 105 Reinsurance Industry results 121 We cannot wait until there are massive dislocations in our society to prepare for the fourth industrial revolution. Robert J.Shiller The South African Insurance Industry Survey 2017 | 1 Antoinette Malherbe Partner, Insurance Survey 2017 Financial Services Tel: +27 83 458 8484 Email:
[email protected] If there is something to be learned from the year 2017, evolved and we look at the progress the market has made it is that change is inevitable.