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INTRODUCTION

INTRODUCTION. INTRODUCTION. Introduction Martijn Appelo Integration Progress Hennie Nortje System Integration Hennie Reyneke Accounting and Investments Andrew Birrell. INTRODUCTION. Environmental factors Capital Alliance Life. ENVIRONMENTAL FACTORS.

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INTRODUCTION

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  1. INTRODUCTION

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

  3. INTRODUCTION • Environmental factors • Capital Alliance Life

  4. ENVIRONMENTAL FACTORS • Life assurance market in South Africa • Public awareness • Fedsure/ Norwich • Clients

  5. CAPITAL ALLIANCE LIFE • The company • Clients communication • MCS • Call centre • Disaster recovery • Process management

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

  7. INTEGRATION PROGRESS

  8. 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

  9. ISSUES THAT EMERGED • Public awareness • Volatility in financial services • Market perceptions • Service level agreements • Backlogs inherited • Restructuring of silos • Relocation

  10. ISSUES THAT EMERGED • People integration • Double deduction of September premiums • Market value adjuster • System downtime • Imaging conversion • Re-prioritise Norwich conversion

  11. November August September October High level plan for system conversion Surveys & forums conducted Intermediaries workshops System processes identified Physical integration Announcement of new structure Culture surveys & forums conducted IT infrastructure Taxi communication vehicle in progress Implementation of new servers Office moves complete Refurbishment Integration team in place Induction program introduced Systems conversion plan Employment offers Reinsurance agreement signed Relocation of CAL business units Staff restructuring & redundancies Conversion of annuity system BRIEF SUMMARY - ACHIEVEMENTS TO DATE

  12. January February March April Acceptable SLA’s AIMS Conversion Backlogs Resolved Prophet Implementation Process Management Functionality Gap Analyses Additional Functionality Development Web Front-end Conversion Call Centre Relocated Imaging Conversion Integration Survey Conducted Norwich Annuities Conversion Incentive Program Implemented Workflow Conversion Culture Feedback Call Centre Relocation Continuation Planning Skills Development Skills Development Skills Development BRIEF SUMMARY - ACHIEVEMENTS TO DATE Skills Development

  13. STAFF INTEGRATION SURVEY : NEGATIVE • Combining IT infrastructure • Backlogs inherited • Management culture clashes

  14. 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

  15. 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

  16. MOST IMPORTANT PRINCIPLES • Meet timetable deadlines • Decisiveness • Thoroughness of integration • Two way communication • Pace of integration • Management of expectations

  17. 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

  18. 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

  19. WORK IN QUEUES

  20. FEEDBACK ON FEDSURE SERVICE LEVEL AGREEMENTS

  21. May June July August Data Conversion Testing System Functionality Testing Resource Allocation Norwich Value Calculations Norwich Conversion System Enhancements Commence Identify and Analyse Activities Fedsure Value Calculations Fedsure Conversion Clean-ups Commence Process Re-think Commences Culture Surveys Reduce Work Items Accounting Reconciliations Skills Development Skills Development Skills Development Skills Development MILESTONES FOR THE NEXT FOUR MONTHS

  22. QUESTIONS ?

  23. SYSTEM CONVERSION

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

  25. VISION Reduce annual IT costs per Fedsure ILD policyby 75%

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

  27. SATURN / LAZARUS CONVERSION • SUN system changes completed - except 1 product • Testing in progress • Values system • 80% of tasks completed

  28. =Target =Actual / Revised Target PROJECT PLAN

  29. ADDITIONAL CONVERSIONS • Namibia • Norwich Annuities • VIA conversion - in progress • Norwich ISP

  30. 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

  31. ACCOUNTING

  32. 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

  33. 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

  34. 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

  35. OUTSTANDING CLAIM STATISTICS

  36. UNAPPLIED LOAN STATISTICS

  37. BANK RECONCILIATIONS Note that bank accounts have been reconciled monthly since November 2001, and the above are an historic legacy

  38. 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

  39. Thank You

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