CHANGE THE ONLY CONSTANT

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CHANGE THE ONLY CONSTANT
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Change is inevitable, change is constant

• Well-informed people know it is impossible to
  transmit the voice over wires. The thing would be
  of no practical value
• Editor, Boston Post, 1865
• The boy is a hopeless composer
• Beethovens music teacher
• Television? People will soon get tired of
  staring at a plywood box every night!
• Daryl F. Zanuck, 20th Century Fox, 1946
• I think there is a world market for about five
  computers
• Thomas J Watson, Chairman IBM, 1943
• Heavier than air flying machines are impossible
  
• Lord Kelvin, 1895
• Guitar groups are on their way out
• Dick Rowe, President Decca Records, 1962
• "I have traveled the length and breadth of this
  country and talked with the best people, and I
  can assure you that data processing is a fad that
  won't last out the year."
• - The Editor in Charge of Business Books for
  Prentice Hall, 1957

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Outline of Discussion

• CHANGE
• In South Africa
• In the market in which we operate
• Turning obstacles into stepping stones

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South Africa

• In order to embrace the future, we have to look
  and learn from the past.

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South Africa

• Accept the need for change
• Avoid the temptation of pretending
• Articulate a clear and achievable vision

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South Africa

• Accept the need for change
• Avoid the temptation of pretending
• Articulate a clear and achievable vision
• Accept that the process of change never ends

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South Africa

• CHALLENGES
• Crime
• The changing economic cycle
• Unemployment
• Poverty
• The education system
• The Aids pandemic

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South Africa

• Financial Sector Scorecard
• Human Resource Development
• Procurement and Enterprise Development
• Access to Financial Services
• Empowerment Financing
• Ownership and Control
• Corporate Social Investment

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South Africa

• You can respond to the scorecard in one of two
  ways either resisting it, or embracing it.

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South Africa

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South Africa

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South Africa
Total 18 population 29.3 million Black
22.3 million White 3.4 million Coloured 2.8
million Indian/Asian 0.8 million Black
Diamonds 2.6 million
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South Africa

• Estimated annual spending power of
  R180-billion, compared to R130-billion in 2005.
• Represent 12 of the black South African
  population, but comprise 54 of black consumer
  spend and 28 of total South African consumer
  spend.

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South Africa
47 of Black Diamonds live in suburbs compared to
the 23 in 2005.
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South Africa
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South Africa

• 94 of Black Diamonds live in a formal house.
• 39 of Black Diamonds drive a car owned by
  themselves or a family member.

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South Africa

• 87 say that it is necessary to have medical
  aid, but only 26 have any.
• Less than a quarter have short-term insurance
  such as motor vehicle, cellphone or household
  insurance.

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The market in which we operate

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The market in which we operate
Channel
Percentage share of the UK Market
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The market in which we operate

• Consumer behaviour will increasingly be driven by
  quality of service in addition to price
  sensitivity.
• Insurers will increasingly compete on brand
  strength not just price competitiveness.
• Major insurers will enable customer access via an
  increasing range of channels.
• Intermediaries will keep significant market share
  but become more concentrated between majors and
  specialists.

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The market in which we operate

• Succession planning and competition are the
  greatest issues facing smaller intermediaries.
• Medium sized brokers will wane. Players in this
  part of the market will scale back, become small
  or be bought.
• Large brokerages have the advantage of critical
  mass. The trick here is to pass these savings
  onto the customer.

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The market in which we operate

• Change is irreversible adapt or die
• Pieter Dirk Uys

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Turning obstacles into stepping stones
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Turning obstacles into stepping stones

• Change is not what it used to be
• it is accelerating
• it is unpredictable and
• it is fundamental

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• Thank you