DEMISTIFYING LIFE INSUANCE
25 – 27 November 2015
Lome - Togo
PANEL DISCUSSIONS ON;
LIFE INSURANCE BUSINESS
STAKEHOLDERS EXPECTATION
C. C. BRUCE JNR
EXECUTIVE DIRECTOR – ENTERPRISE LIFE
Outline
1. Understanding Stakeholders Interests
2. Stakeholder Mapping
3. Promoter - Stakeholders
4. Life Assurance Value Chain
 Product Design
 Distribution
 Underwriting
 Policy Service
 Claims Management
5. Value of Life Assurance Stakeholders
Understanding
Stakeholders Interests
Stakeholder can be defined as a group of people who
can be crucially affected or can crucially affect the
organisation
We do not have a sole interest group
The various stakeholders may have converging or
conflicting interest
Deciding which is priority is one of the challenges in
managing an ethical company
Stakeholder Mapping
High Influence
Low Interest
Latents
High Influence
High Interest
Promoters
Low Influence
Low Interest
Apathetics
Low Influence
High Interest
Defenders
Promoter - Stakeholders
Policyholder
Directors / Shareholders
Management
Regulators
• Viability of the company during duration of policy
• Satisfying service levels
• Expect good returns from investment
• Continuous employment and career progression
• Good remuneration
• Balancing of policyholder protection and market
development
Life Assurance Value Chain
Product Design
 Defines the strategic positioning of company
Distribution
 Function of getting product to market
 Face and Heart of Life Assurance
Underwriting
 Performs the “Gate Keeper” role
Policy Service
 Policy maintenance function
Claim
 Payment of both claims and maturity benefits
Key Stakeholder Interest
Product Design
Policyholders Interest
Management Interest
 Needs based design
 Needs based design
 Affordable
 Good Margins
 Competitive Returns
Shareholders
Regulators Interest
 Product profitability
 Actuarially sound
 Wide-range products to
develop market
Key Stakeholder Interest
Distribution
Policyholders Interest
Management Interest
 Full disclosure
 Sales process improvement
 No mis-selling
 Focus on sales volume
Shareholders Interest
Regulators Interest
 Top line growth
 No mis-selling
 Ethical behaviours
 Professional behaviours
Key Stakeholder Interest
Underwriting
Policyholders Interest
Management Interest
 Minimal underwriting
 Adequate information
requirement
 Accurate underwriting
decision
Shareholders Interest
 Ensure solvency
Regulators Interest
 Ensure solvency
 Ensure fairness to
policyholders
Key Stakeholder Interest
Policy Service
Policyholders Interest
Management Interest
 Simple policy wording
 Efficient policy administration system
 Satisfying customer
 Managing cost
experience
 Increasing customer satisfaction
Shareholders Interest
Regulators Interest
 Ensure continuous solvency
 Fair terms and conditions
 Complaints handled fairly
Key Stakeholder Interest
Claims Management
Policyholders Interest
Management Interest
 Shorter claims process
 Settle genuine claims
 Prompt claims payment
 Improve access to
information
Shareholders Interest
Regulators Interest
 Right governance system
 Treat policyholders fairly
 Maintain good reputation of
industry
Value of Life Assurance Stakeholders
Introduces varied perspectives and new ideas
Prevents insurers from being blindsided by
policyholder concerns
Creates a certain level of fairness
Improves credibility and confidence in the industry
Improves success of industry
THANK YOU