Sanlam Limited · JSE:SLM
Sanlam — Sanlam Benchmark Survey 2019
45 slides from Sanlam's conference presentation, 2019
Slide 1: Make big data small
Make big data small by Barend le Grange Head: Individual Member Support Sanlam Employee Benefits
Slide 2: Making big data small
C MAKING B G DATA sma
Slide 3: Choice
Slide 4: We are not the same
WE ARE NOT THE SAME Very different: Paths Lives Priorities Expectations
Slide 5: Size of word represents amount of times mentioned
Size of word represents amount of times mentioned STOP WORKING GREY E LDERLY INVESTMENTS TAX FREE LIFESTYLE FREEDOM rnabiso ®t COMFORT. nowNSi7ING orth AMIEY oT RAVEL EXCITEMENT FE AR MEDICAL EXPENSES FINANCIAL SECURITY POVERTY DEBT FREE GET THERE FINANCIAL CONCERN *LPAGE ENOUGH MONEY seuoos secs wo
Slide 6: Individual needs
INDIVIDUAL NEEDS Most Important Important Least Important Lower Income Funeral Cover Short Term Debt Tax Free Savings Higher Income Retirement Funding Life Insurance & Medical Aid Funeral Cover
Slide 7: Sanlam Financial Resilience Index
SANLAM FINANCIAL RESILIENCE INDEX Diagnostic Tool Identify Financial Obstacles Move From Intuitive Generalisations to Empirical Specifics Measures a Funds’ Financial Resilience Against the Industry Across 6 Categories Findings from 5,000 respondents
Slide 8: SFRI findings
SFRI FINDINGS 65.3% SFRI 2017 63.1% SFRI 2018 61.1% SFRI 2019
Slide 9: SFRI findings: financial resilience by category
SFRI FINDINGS Average of: Financial Resilience Percentage 90% 80% Income and package composition 70% 60% Financial Wellness 50% Level of indebtedness 40% 30% Budgeting 20% Provision for retirement 10% 0% Advice and financial planning Financial Resilience Category
Slide 10: SFRI findings: demographics analysis
SFRI FINDINGS Demographics analysis of Financial Resilience: Older employees are 9% more financially resilient than younger employees. Males are 4% more financially resilient than females. Employees with an Honours degree or higher are 12% more financially resilient than those with matric or lower.
Slide 11: Needs change
NEEDS CHANGE. Retirement is not a product … It is a lifestyle Help them create the lifestyle they aspire to and instill financial resilience in members to take on life’s challenges
Slide 12: Are we doing enough in considering the individual?
ARE WE DOING ENOUGH IN CONSIDERING THE INDIVIDUAL?
Slide 13: Actual lived experience
ACTUAL LIVED EXPERIENCE Disappointment Advice Providers Themselves
Slide 14: Actual lived experience
ACTUAL LIVED EXPERIENCE Shock Tax Net outcomes
Slide 15: Actual lived experience
ACTUAL LIVED EXPERIENCE Regret Vehicles Behaviour
Slide 16: Key challenges
KEY CHALLENGES Insufficient Information Lack of accessibility Options Progress Values
Slide 17: Key challenges
KEY CHALLENGES Insufficient Information Lack of accessibility Options Progress Values
Slide 18: Key challenges
KEY CHALLENGES Insufficient Information Jargon Lack of accessibility Options Progress Values
Slide 19: Key challenges
KEY CHALLENGES Insufficient Information Jargon Lack of accessibility Feel isolated Options Progress Values
Slide 20: Member engagement
MEMBER ENGAGEMENT
Slide 21: Engagement with members
ENGAGEMENT WITH MEMBERS Who What How When … and then it changes
Slide 22: Analytics enable engagement
ANALYTICS ENABLE ENGAGEMENT Administrative Capability Analytical Horsepower Ability to Apply
Slide 23: What people want?
WHAT PEOPLE WANT? On-line capability for values & transactions Human interaction for information and guidance Access to trusted financial advice Written information ineffective to engage and influence
Slide 24: Digital experience
DIGITAL EXPERIENCE Pages Articles Description Unique Hits Description Unique Hits My Benefits 250,000 7 Golden Rules 31 My Investments 52,000 The Impact of Costs 7 My Beneficiaries 41,000 Good Investment Choices 5 Retirement Calculator 24,000 Starting Early 3 Life Events 15,000 Setting a Goal 33
Slide 25: Retirement benefits counselling
RETIREMENT BENEFITS COUNSELLING Standalone Written 51% HR 20% Administrator 47% EB Consultant 25% 2019 Sanlam Benchmark Consultant Survey IFA 22% 88% believe that RBC will assist in improving retirement outcomes
Slide 26: Hesitance to use humans?
HESITANCE TO USE HUMANS? 69% wary of cost
Slide 27: Hesitance to use humans?
HESITANCE TO USE HUMANS? 69% wary of cost 13% believe that setting up own infrastructure is too cumbersome
Slide 28: Hesitance to use humans?
HESITANCE TO USE HUMANS? 69% wary of cost 13% believe that setting up own infrastructure is too cumbersome 31% still unaware of what Retirement Benefits Counselling entails
Slide 29: Hesitance to use humans?
HESITANCE TO USE HUMANS? 69% wary of cost 13% believe that setting up own infrastructure is too cumbersome 31% still unaware of what Retirement Benefits Counselling entails 4% ran out of time to properly consider Counselling
Slide 30: Maintain standard of living
MAINTAIN STANDARD OF LIVING 0 - 30% 31 - 60% 61 – 100% Don’t know Standalone 68% 22% 4% 6% Umbrella 75% 10% 9% 6%
Slide 31: It's not too late… Impactful Retirement Benefits Counselling
It’s not too late… Impactful Retirement Benefits Counselling
Slide 32: How do you ensure fair treatment?
Retirement Benefits Counselling Becoming New Product Push? HOW DO YOU ENSURE FAIR TREATMENT? If an annuity strategy contains annuity products from various providers One single provider… cannot provide Retirement Benefits Counselling at withdrawal and retirement Retirement Benefits Counselling should
Slide 33: How do you ensure fair treatment?
HOW DO YOU ENSURE FAIR TREATMENT? Retirement Benefits Counselling Becoming New Product Push? Measuring Experience at Withdrawal & Retirement Incentivisation Model Disclosure Ability to Audit
Slide 34: What gets measured … gets done
WHAT GETS MEASURED … GETS DONE. Measuring what was put into counselling Measuring actual member outcomes Feedback from members
Slide 35: Basic counselling – inbound calls
BASIC COUNSELLING – INBOUND CALLS Advice General Retirement Withdrawal Retrenchment requests queries Nov 15% 44% 9% 2% 30% 2018 Dec 22% 53% 3% 3% 19% Jan 0% 82% 0% 0% 18% Feb 10% 74% 2% 2% 12% 2019 Mar 3% 81% 1% 1% 13% Average amount of calls per month of 120 Apr 5% 89% 0% 0% 5%
Slide 36: Pro counselling – outbound calls
PRO COUNSELLING – OUTBOUND CALLS May 2018 – April 2019 Withdrawal Retirement Member contacted and counselled 45% 54% No contact details available 22% 15% Member unable to contact after 3 attempts 33% 35% >4,500 withdrawals and >600 retirements
Slide 37: Measuring member outcomes – retirement
MEASURING MEMBER OUTCOMES - RETIREMENT Impact of Retirement Benefits Counselling at Retirement 90% 80% Percentage of Members 70% 78% 60% 50% 55% Counselled 40% 39% Not Counselled 30% 20% 18% 10% 5% 3% 1% 1% 0% In-Fund Phased Retiree Out-of-Fund Cash Choice at Exit
Slide 38: Measuring member outcomes – withdrawal
MEASURING MEMBER OUTCOMES - WITHDRAWAL Impact of Retirement Benefits Counselling at Withdrawal 100% 90% 90% 80% Percentage of Members 70% 72% 60% Counselled 50% 40% Not Counselled 30% 26% 20% 10% 10% 2% 0% 0% In-Fund Preservation Preservation/RA/Other Fund Cash Choice at Exit
Slide 39: Feedback from members
FEEDBACK FROM MEMBERS "Thanks so much for your "Thank you so much for your assistance. "I wanted to save my funds time and effort in helping me! I I contacted the call centre but they were not as but had no idea what to do, so appreciate people like you helpful as you. so I am really happy that you
Slide 40: Big data
Artificial Intelligence Machine Learning Analytics Insights… Big data
Slide 41: Opportunity to go even smaller
OPPORTUNITY TO GO EVEN SMALLER Machine learning Artificial Intelligence Propensity Models All depend on Data… … Predictive Proactive Retirement Benefits Counselling
Slide 42: Predictive proactive retirement benefits counselling
PREDICTIVE PROACTIVE RETIREMENT BENEFITS COUNSELLING Use Machine Learning model to predict who to call If there was 100 members in a fund, we called everyone, but counselled only 50 members 50 Now we can reduce fees by only calling 48 members, but still reach 40 of the 50 members 40 Basically, reduc
Slide 43: Benefits
BENEFITS Individualize the member experience If How When Increase effectiveness of Retirement Benefits Counselling Enable Financial Resilience
Slide 44: Making big data small
MAKING BIG DATA SMALL Systems Data and analytical skills Ability to implement …to make the most of interventions
Slide 45: Trust
TRUST