Introduction Martijn Appelo

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INTRODUCTION
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INTRODUCTION
Introduction Martijn Appelo Integration
Progress Hennie Nortje System
Integration Hennie Reyneke Accounting and
Investments Andrew Birrell
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INTRODUCTION

• Environmental factors
• Capital Alliance Life

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ENVIRONMENTAL FACTORS

• Life assurance market in South Africa
• Public awareness
• Fedsure/ Norwich
• Clients

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CAPITAL ALLIANCE LIFE

• The company
• Clients communication
• MCS
• Call centre
• Disaster recovery
• Process management

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RESULT

• Persistency
• Costs - renewal and integration
• Bricks and Mortar
• Makes low cost wholesaler strategy viable
• Integration process has gone better than
  expected

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INTEGRATION PROGRESS
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INTEGRATION OBJECTIVES

• Integrate staff
• Relocate staff
• Integrate systems
• Business retention
• Communication
• Optimise intellectual capital
• Reduce costs
• Seamless transition for policyholders
• Achieve complete integration in 15 months

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ISSUES THAT EMERGED

• Public awareness
• Volatility in financial services
• Market perceptions
• Service level agreements
• Backlogs inherited
• Restructuring of silos
• Relocation

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ISSUES THAT EMERGED

• People integration
• Double deduction of September premiums
• Market value adjuster
• System downtime
• Imaging conversion
• Re-prioritise Norwich conversion

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BRIEF SUMMARY - ACHIEVEMENTS TO DATE
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BRIEF SUMMARY - ACHIEVEMENTS TO DATE
Skills Development
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STAFF INTEGRATION SURVEY NEGATIVE

• Combining IT infrastructure
• Backlogs inherited
• Management culture clashes

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STAFF INTEGRATION SURVEY POSITIVE

• Team - no us and them
• New processes and system
• Success of CAL
• Management approach to integration
• Integration campaign
• Problems addressed
• Integration well managed
• Integration communication positively perceived

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CAL IS CHANGING

• Public awareness
• Intermediary involvement
• Workflow management
• Call centre volumes
• Communication to policyholders
• Reduce work items
• Debit order business
• Complex products
• Process management

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MOST IMPORTANT PRINCIPLES

• Meet timetable deadlines
• Decisiveness
• Thoroughness of integration
• Two way communication
• Pace of integration
• Management of expectations

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FAVOURABLE ASPECTS

• Closed distribution
• Built relationships with key individuals
• Decision to use CAL system
• Establishment of integration team immediately
• Structure and reporting lines announced
• Physical integration
• Buddy system
• Top management involvement throughout
• Early conversions

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UNFAVOURABLE ASPECTS

• Period of uncertainty
• Could have built better relationships with
  middle
• management in Fedsure
• Could have communicated better with
  policyholders
• Could have managed the IT downtime better

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WORK IN QUEUES
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FEEDBACK ON FEDSURE SERVICE LEVEL AGREEMENTS
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MILESTONES FOR THE NEXT FOUR MONTHS
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QUESTIONS ?
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SYSTEM CONVERSION
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PRESENTATION OUTLINE

• Vision
• Fedsure systems converted
• Saturn / Lazarus conversion
• Project plan - so far
• Additional conversions
• General conversion issues

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VISION
Reduce annual IT costs per Fedsure ILD policy by
75
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FEDSURE ILD SYSTEMS
SATURN Fedsure policy administration
LAZARUS Norwich policy administration
VIP Valuations
FANS Fedsure annuities administration
AIMS Commission administration
MASTERPIECE General Ledger
FADS Document and letter printing
INTERNET Marketing client/broker enquiries
DATA WAREHOUSE Copy of all Saturn/Lazarus/Fans
data
EASTMAN KODAK Workflow and images
CALL CENTRE Cape Town Call Centre
CLUES Client enquiries (Call Centre)
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SATURN / LAZARUS CONVERSION

• SUN system changes completed - except 1
  product
• Testing in progress
• Values system
• 80 of tasks completed

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PROJECT PLAN
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ADDITIONAL CONVERSIONS

• Namibia
• Norwich Annuities
• VIA conversion - in progress
• Norwich ISP

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GENERAL CONVERSION ISSUES

• Access to all systems
• Eastman Kodak conversion
• Dependency on a number of key resources
• Additional conversions
• External auditor requirements
• IT Change control process
• System uptime demands
• Impact on business

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ACCOUNTING
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HIGHLIGHTS SEP 2001 TO MARCH 2002

• Successful split of Norwich and Fedsure general
  ledgers
• and investment assets between Life Division
  and
• Investec Employee Benefits
• Conversion of Fedsure AIMS commission system,
• Fedsure FANS annuity system and Norwich
  Lazarus
• annuity system to Capital Alliance line of
  business system

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HIGHLIGHTS SEP 2001 TO MARCH 2002

• Transfer of bank reconciliation maintenance
  from
• accounts department to administration and
  business areas
• Conclusion of sale of majority of Life Division
  current
• assets and current liabilities between
  Capital Alliance and
• Investec Employee Benefits

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HIGHLIGHTS SEP 2001 TO MARCH 2002

• Claims process implemented to correctly
  allocate all
• surrender, maturity, death and disability
  claims between
• Capital Alliance Life and Investec Employee
  Benefits
• Procedure implemented to identify and allocate
  
• excluded policy business to Investec Employee
  Benefits

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OUTSTANDING CLAIM STATISTICS
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UNAPPLIED LOAN STATISTICS
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BANK RECONCILIATIONS
Note that bank accounts have been reconciled
monthly since November 2001, and the above are an
historic legacy
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INVESTMENTS

• The Building Block process has been fully
  implemented
• and is on track
• The investment, accounting and cashflow
  management
• processes have been simplified
• Annuity ALM is done monthly

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Thank You