Absa Insurance

1. Absa Insurance

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3. Absa Insurance Executive Committee Managing Director Andries van Staden PA Faye Younghusband EA Patricia Naiker Divisional HRBP MasegoMoeletsi Chief Operating Officer Carike van Dyk Head of Claims and Administration Eric Sigama Risk and Capital Managment SiasEsterhuizen Chief Financial Officer Jeremy Rielly Absa iDirect Managing Director Jacques Pretorius Operations, Regions and Commercial Products James Trybus

4. Absa Insurance The largest short-term bancassurer in the market Personal Business Commercial Business • Home Owners Comprehensive • Bancassurancesolutions for private individuals on fixed assets (financed and non-financed) • HOC provides building insurance against natural perils as well as geyser and pipes and attaches primarily to Absa’s home loan products • Commercial • Bancassurancesolutions for the protection of bank financed commercial assets • General multi peril insurance solutions for corporate clients placed though independent intermediaries and Absa Insurance & Financial Advisers • Threshold for insurance - sum insured cannot exceed R250m per premises and client turnover cannot exceed R100m per annum • Personal Lines • Personal insurance solutions for financed and non-financed assets, both fixed and mobile, as well as travel insurance • Insurance products include motor vehicle, contents, personal liability, including household contents and associated value added products linked to the assets (e.g. extended motor cover) • Absa idirect offers a range of direct & digital short-term insurance options • UMA and Other • UMAs - Absa operates 4 specialist underwriting agencies which write niche insurance products on Absa’s books (Vehicle Mechanical Breakdown Warranty, Legal Assistance, Car hire & Medical Gap cover) • Other products included Extended Cover (vehicle finance credit shortfall) and Travel Insurance • Bancassurancesolutions for the protection of bank financed assets • Agriculture • Insurance tailored for the agricultural sector: • Agriassets: cover for fixed and mobile farming assets • Agricultural production: cover for live agricultural products (crops and livestock) across multiple products on a multi peril basis • Agricultural commodities: cover for crops/livestock in storage, harvested and/or ready for market or in transit

5. AbsaInsurance Under a Microscope Finance Department Personal Lines Dept Commercial/Agri Insurance Product Team Risk and Capital MI Team

6. Finance Banking and investment management Bank reconciliations and investment administration including withdrawals and investment of excess cash. Processing of bordereaux from Underwriting Managers Processing of investment and bank reconciliation journals Management expenses and Credit Control Analysis of management expenses Processing of payments to creditors Intercompany transactions Processing of expense journals Collection of outstanding premiums and allocation bordereaux payments Business Performance, reinsurance and project management Compilation of business performance pack ABC cost analysis pack Reinsurance accounting and admin Any other adhoc projects Financial reporting Compilation of financial management pack, financial statements and all regulatory reporting. VAT and Tax admin Capital planning Processing of tax and vat journals

7. Personal Lines Team Personal Business Product is responsible for: Product Pricing Relationships Processes Processes to manage the product Manage relationships with our stakeholders in the bank as well as externally Development of Products that are relevant in the market Level of Pricing in order to make the sales

8. Commercial/Agri Insurance Product Team The Commercial and Agri product team are responsible for the development of market related, competitive insurance products which are sold via the regional operations network utilising Absa’s own Financial Adviser network and also externally contracted Insurance Brokers. The team creates policy wordings, disseminates product material and pricing guides and assists with the development of IT systems to manage the policyholder information In addition to the above the management of insurance risk is a vital part of the teams responsibilities, and this includes technical advice, formal training interventions, underwriting audits, reinsurance arrangements and general guidance to the regional operations to maximise profitability while maintaining a healthy balance between premium growth and selective risk management The third major function of the team is to assist with the development of suitable insurance solutions to protect the banks financed assets thereby ensuring that bank customers have the necessary protection in the event of loss or damage to such assets while they are under finance

9. Risk and Capital Responsible For Ensures that all the short-term insurance licenses in Absa hold sufficient reserves to pay out past and future claims and cash back rewards as they become due. Calculating premium, claim and cash back reserves for regulatory and reporting purposes Calculating regulatory and economic capital Overseeing regulatory and internal risk Reporting and ensuring compliance with solvency regulation The department calculates the amount of capital that needs to be held so that the licenses remain solvent in 249 out of every 250 years and how much reinsurance to buy to protect this capital base. Risk and Capital do a great deal of reporting to the Barclays group, to assure them that our risk profile is being monitored and managed appropriately on an ongoing basis.

10. MITeam Absa Insurance generates large quantities of data through transactions and processing, the Management Information function is to take this data and make it usable, combined from multiple sources and available for reports, production packs and re processing by other departments in Analysis. Our daily tasks employ database tools and report writing to develop and present the information.

11. Customer Experience • CustomerCentricity Client Services QualityManagement Internal Relations • Driving customer centric culture and delivery of service promise • Customer satisfaction measures, and industry research • AFS Customer Programme • Customer Experience improvement initiatives • Driving quality and standardisation of customer interactions • TCF custodian • Complaints resolution – Action line/Media/CEO • Ombudsman complaints resolution • Complaints resolution committee • Root cause analysis of complaints • Driving application of fairness and equity • Business education and support • Continuous assessment of transaction quality and client interactions in controlled and structured environment • Identify opportunities to improve business efficiency • Identify risks and propose controls to mitigate risks • Provide a tool to enhance individual performance through coaching and counselling • Coordination and distribution of internal communications • Fun at Work and CSI events coordination • Improvement and maintenance of Insurance for You intranet contents • Ensure compliance with branding standards

12. Absa iDirect Limited Absa idirect was launched in 2008 as the direct personal lines short term insurer for Absa Financial Services (AFS); direct insurance meaning that the insurance product/s on offer to the customer is underwritten and administered directly by the underwriter and no broker or intermediary commissions are paid. Absa idirect is an authorised financial services provider and together with Absa Insurance Company, form the complete Absa Insurance cluster in AFS. Absa idirect is currently the biggest direct insurer in the bancassurance space, with new business acquired through the bank assurance model, leveraging from leads supplied by the group. Our focus is also on digital advertising and the motor dealer network as additional lead streams. Absa idirect’s competitive edge stems from being a bancassurer and its association with Barclays Africa (and the Absa brand), which is unique in the direct insurance industry

13. Absa iDirect Limited We target customers in the core and middle market, but also have a number of private bank customers who prefer to use a direct channel, as opposed to the traditional advisor channel. It also recently launched the offering via Absa online, a first in the banking industry, where customers can purchase short term insurance in a secure environment. Absa idirect offers a personal lines short term insurance product (motor and household insurance) through a call centre channel. Our products are sold and serviced by dedicated FAIS accredited Absa idirect agents, but the non- customer facing functions are shared with Absa Insurance in order to leverage best practice and eliminate duplication within the cluster. Absa idirect also has one of the best “cash back” benefit structures in the industry. Its offering is focussed on simplicity and “value for money”, with our products being aligned to what is on offer in the direct insurance industry.