Introduction to day 1 of the FIA strategic Planning workshop

1. Introduction to day 1 of the FIA strategic Planning workshop 8 October 2010 Alan Kirschner

2. Purpose of workshop • Review progress in implementing the Feb / Sept 2008 strategic plan. • Start the process of developing a 3 to 5 year strategic action plan of the FIA We are talking strategy…

3. Overall strategic planning process... Today: everybody will have input here Current reality? Our Charter Purpose Focus Areas? Next month: Based on your input, Exco will identify key focus areas and action plans How? i.e. Action plans

4. Strategic alignment

5. FIA Charter We are a recognised professional organisation representing our members with a code of conduct governing our behaviour. We exist to serve our members and promote our image through industry representation and the provision of services including the development of the intermediary market.

6. The FIA’s primary Purpose:- We represent, protect, promote and further the common interests of our members.

7. Current reality • Review of 2008 strategic initiatives • Feedback from preliminary stakeholder research • Feedback from Epic research • Advisory Council views – • Hindering factors • Helping factors • Trends…

8. Review of 2008 strategies • Three strategic focus areas • Structural Blueprint & Design • Communication: Internal and External • Image and influence

9. Focus Area: Structural Blueprint & Design • Definition of Success • All members (Corporates and individuals) recognise the value of FIA membership (The need for development and clarification of value proposition) • Highly competent individuals in the secretariat with limited dependence on volunteers, efficiently executing agreed action plans • Clarity on membership categories/structures, voting rights and fees • A recognised umbrella body exists (yes) which consists of all financial services intermediary bodies in South Africa (not there yet) • We have efficient and effective structures (including committees, divisions, branches) which meet the needs of members across the country • An effective performance management process is in place for all staff members • Effective and regular communication internally and externally occurs during the blueprint rollout

10. Focus area: Communication Plan • Definition of Success • Timeous and effective two-way electronic communication with all our members • Our members are well informed about FIA and relevant industry issues • Timeous response from FIA to specific member concerns • An annual road show/conference for members/potential members (more work needs to be done for potential members) • Positive feedback from members on our communication • Existence of communications database which includes appropriate employees of member companies (needs work for larger member organisations) • FIA seen as a proactive, valued, regular contributor and participant with financial press and industry bodies • Positive column inches on FIA

11. Image and Influence • Definition of Success • Recognised by regulators, legislators and government as the voice of intermediaries (great strides; must continue the work with Treasury and government) • Consumer knows the value of dealing with intermediary (no) • Product providers make membership of FIA a preference of granting agencies (great strides in the short term and health space. Others no) • Sound and healthy and productive relationships with SAIA (yes), LOA/ ACI/ ASISA (patchy), Inseta(great strides), IISA(yes), FPI(yes), Council for Medical Schemes(yes) etc... valued by them

12. Stakeholder research (preliminary) • Respondents • Viviene Pearson (GM sustainability), SAIA • Godfrey Nti (CEO), FPI • Sandra Dunn (CEO), Inseta • Anna Rosenburg (Senior Policy Advisor – insurance and regulatory issues), ASISA • Barry Scott (CEO), SAIA • Jonathan Dixon (Director – Insurance), FSB • Peter Stephan (Senior Policy advisor – marketing and distribution), ASISA

13. What are the biggest challenges facing the FIA? • Building a bridge between the very different needs and interests of the small and large brokers • Helping most members understand the broader issues affecting the industry • Providing value to membership base - members want FIA to provide everything in the sector. I.e.. Keeping members happy in terms of value proposition • Dealing with regulation - I'm happy with the way they engage with policy makers (they also engage early)

14. Communication improvements • Need more knowledgeable specialists who participate and give leadership input and substance (like Barry Taylor) • Need more formal (quarterly) meetings

15. Overall when you think of FIA, in what areas would you say they excel or have been successful? • Have some very competent people - knowledgeable, experienced with drive and energy • A visible, organised, principled body that are credible (to regulator) and flexible enough to see things in terms of consumer interests • Good personal relationships with secretariat and leadership • They know the industry • Supportive of other associations

16. Where do you think the FIA most need to improve to meet your needs? • Improve in input and participation - more specialists, not generalists • More regular formal interactions • End of preliminary stakeholder feedback

17. Media perception audit and PR campaign: FIA October 2010 • The perception research • The qualitative results • Research summary • Campaign to date • Results • Questions Overview

18. Before a new media communications campaign is launched it is imperative to gauge what the current brand perception is, in order to affect it. • A media audit is essentially a ‘dipstick research’ tool across a wide spectrum of media. In order to gauge whether or not a media campaign has been successful a re-audit is recommended six-months to a year later - with the same media - to ascertain if perceptions have in fact changed. • Note that the media audit was conducted within the first two weeks of Epic Communications taking on the FIA account, prior to the PR campaign. The perception research Why conduct a media audit? • For the FIA, Epic Communications has audited key business and consumer journalists in the following arenas: • Mainstream Newspapers (Business / finance editors / Consumer personal finance) • Financial industry trade • Online • Radio • Television Prepared for FIA

19. Perception research Epic Communications conducted dipstick research among 20 key South African journalists across 22 media into: • The current communication process between the FIA and the media : • The level of brand awareness among the media; • The level of understanding of the role that the FIA plays in SA’s financial services space; • The level of understanding as to how the FIA differs from other financial services industry bodies; • Knowledge of spokespeople / representatives; • Frequency of content delivery; • General comments. • Epic Communications surveyed: • 3 x National newspapers • 2 x Regional newspapers • 2 x Financial weeklies • 1 x radio • 2 x online • 3 x television • 5 x Financial trade magazines • 2 x consumer glossy magazine (with finance / investment section) Overview Perception research cont... • Financial Mail: Weekly financial magazine focusing on business and investment issues with an investigative journalistic approach.(Circulation: 30 200) • Business Report: The most widely read South African daily business newspaper - published by Independent News and Media and carried by The Star, Cape Times, The Mercury, Pretoria News and Sunday Tribune. Covers local and international business news and offers insight from leading business experts. (Circulation: 282 968) • Sake24: Business supplement carried by three daily newspapers Beeld, Die Burger, Die Burger Oos-Kaap and Volksblad.(Circulation: 484 785) • SAFM: National radio station, focusing primarily on decision makers seeking insightful and enabling information to keep themselves informed. Age 35-49, LSMs 7-10 • (Listenership: 602 000) • iAfrica.com: iafrica.com is South Africa’s most established portal and one of the biggest web brands with one of the largest, loyal user bases in the country. • (Unique Users: 450 000) • CNBC Africa: CNBC Africa is the continent’s first 24 hour international business channel. It delivers real-time information and insightful analysis about African business and Africa’s financial markets. CNBC Africa also presents regular updates from CNBC affiliates around the world including Europe, Asia and the US. The channel offers a unique global perspective from an African platform. • (Viewership: 1.6 million) • Rapport: Major newspaper containing full mix of editorial. See separate entries for supplements: Sake Rapport, Rapport Tydskrif, Kaap Rapport and Gauteng Rapport. Afrikaans speaking population nationally. Every week, cover day of Sun. (Circulation 295 694) • Finweek:Major financial and business weekly magazine. Target Financial and business people. • (Circulation 30 890)

20. Perception research cont... • The Times: Daily newspaper with a full mix of editorial. Every week, cover days of Mon, Tue, Wed, Thu, Fri • (Circulation 140 116) • Destiny:Women's magazine combining substantial business content with fashion, beauty and lifestyle. Targets working women LSM7-10, age 25-55. Sold at CNA, Exclusive Books, Woolworths, Pick 'n Pay and other retail outlets. Monthly, cover date 1st of January to December(Circulation 27 619) • Enterprise Risk: Official journal of the Inst. of Risk Management SA (IRMSA). Covers the identification and measurement of risk in order to prevent or insure against enterprise exposure.  (Circulation 4 101) • RISKSA: Target Professionals in the life, short-term and health insurance sectors, financial planners, brokers and retirement advisors. Covers short term, life and health insurance industry plus risk related news and technology related to the business.(Circulation 6 301) • The Witness: Major daily newspaper with full mix of editorial. Includes Job Guide on Mondays and monthly home improvement supplement. English speaking adults in Pietermaritzburg, Natal Midlands plus Durban and rest of KwaZulu-Natal. (Circulation 20 771) • Saturday Star: Major weekly newspaper with full mix of editorial. Target English speaking adults, greater Johannesburg Every week, cover day of Sat (Circulation: 108 592) • Sarie: A general interest women’s magazine. Includes fashion, decor, beauty, food, crafts, relationships, fiction etc. Target the more affluent Afrikaans speaking woman. Monthly, cover date 1st of January to December(Circulation: 132 646) • Money Marketing: Contains analysis of changes within the industry and aspects of the financial services industry. Targets Brokers, independent financial advisers, management companies.(Circulation: 6 840) Audit conducted: Question listing SECTION A: QUESTIONS • Have you heard of the FIA? Note: If the answer is ‘yes’ continue on, if not refer to SECTION B’s line of questioning. • What is your understanding of the role of the FIA? • In your experience, what word(s) best define the FIA? Note: This answer must be quick and ‘off the top of their heads’. • Can you differentiate how the FIA differs from other financial services industry bodies i.e. FSB, ASISA, SAIA? • What is your perception of financial intermediaries? • Have you utilized the FIA for comment on savings, investment, insurance, healthcare issues in the past? • Which organizations do you normally use for comment on these issues? • What type of information would you like to receive from the FIA? • Can you name any of the FIA’s top executives? •  Have you had any contact with them for comment on any articles? • When was the last time that someone representing the FIA contacted you? How valuable was the information / media release supplied? • Would you be interested in receiving media releases from the FIA in terms of their expertise in insurance and investment issues affecting consumers and financial advisers? • How do you prefer receiving information (select an option): • Direct telephone pitch • E-mail • New technology methods i.e. Podcasts / blog links, RSS feeds etc. • .

21. Audit conducted: Question listing cont... SECTION B: QUESTIONS • Have you heard of the FIA? No. • Answer: • The Financial Intermediaries Association of Southern Africa (FIA) represents more than 15 000 licensed financial services advisers throughout Southern Africa. Its primary purpose is to represent, protect, promote and further the common interests of its members. • Who do you normally use for comment on savings, investment, insurance, healthcare issues? • Would you be interested in receiving media releases pertinent to the industries in which the FIA operates? • How do you prefer receiving information (select one): • Direct telephone pitch • E-mail • New technology methods i.e. Podcasts / blog links, RSS feeds etc. • . CAMPAIGN 2: JUNE - SEPTEMBER 09 Focus on hotel bookings CAMPAIGN 1: APRIL - JUNE 09 Focus on the sale of units The qualitative results: Business media

22. Business media feedback: Brand knowledge Business media feedback: Brand knowledge cont… Of the “yes” answers (7): Perception of how the FIA differs from other financial services industry bodies… “They deal specifically with the interests of intermediaries” (x4) “I don’t know” (x1) “The FIA plays an advisory role in intermediary legislation” (x1) “They play a similar / same role as the FSB” (x1) Perception of financial intermediaries... “They are easy to work with and play a positive role in informing consumers” (x3) “They are under serious stress” (x1) “Lots of corruption exists among intermediaries” (x1) “The role is currently in transition” (x1) “10% are honest and have integrity, 30% are average and 60% provide a poor service” (x1) On having used the FIA in the past for commentary... “Yes, I have” (x3) “No, I have not” (x3) “I have tried, but it has been difficult to get anything.” (x1) On having heard of the FIA brand… “Yes, I know of them” (x7) “No, I don’t” (x3) On knowledge of the role that the FIA plays... “I don’t know” (x5) “Looking out for the needs and interests of financial intermediaries” (x3) “They are the official financial intermediary body and regulatory board” (x1) “They prevent financial bad practice” (x1) The word(s) that best defines the FIA… “I don’t know” (x3) “Broker friend”(x2) “Organisation” (x1) “Professional” (x1) “Regulator?” (x1) “Standardism” (x1) “Large” (x1)

23. Business media feedback: Brand knowledge cont… Business media feedback: Brand knowledge cont… Of the “yes” answers (7): On identifying an FIA spokesperson… “Justus, Manie and Seamus” (x4) “I don’t know” (x2) “Arnold” (x1) On receiving communication from the FIA / the last t imethey received info... “No I have not” (x5) “A long time ago” (x1) “Once” (x1) On the type of information they would like to receive... “General / industry updates” (x5) “Feature stories and case studies” (x1) ‘Intermediary-focused pieces” (x1) Of all surveyed: On who they use for commentary on savings, investment and healthcare issues… “Banks and savings institutes” (x5) “The FSB / SAIA” (x3) “Investment houses” (x2) On being interested in receiving consumer-related media releases / industry commentary / event invites from the FIA... “Yes please” (x10) On their preferred communication format / channel… “E-mail” (x10)

24. Consumer media feedback: Brand knowledge On having heard of the FIA brand… “Yes, I know of them” (x7) “No, I don’t” (x3) On knowledge of the role that the FIA plays... “I don’t know” (x5) “They are a regulatory body that represents financial planners” (x3) “They are financial advisers” (x1) “They police financial advisers’ (x1) The word(s) that best defines the FIA… “I don’t know” (x3) “Insurance” (x2) “Money” (x1) “FIA” (x1) “Regulatory board with no teeth” (x1) “Ruthless” (x1) “Vague” (x1) . The qualitative results: Consumer media

25. Consumer media feedback: Brand knowledge cont… Consumer media feedback: Brand knowledge cont… Of the “yes” answers (7): Perception of how the FIA differs from other financial services industry bodies… “I don’t know” (x5) “They deal specifically with the interests of intermediaries” (x1) “FIA deals with brokers, the FSB with investments” (x1) Perception of financial intermediaries... “I don’t have one”(x2) “They aid consumers” (x1) “They are salesmen” (x1) “They are good in theory, but in the end don’t aid the consumer” (x1) “They don’t act in the consumer interest. They should be banned” (x1) “I personally think that they are good, but my readers are very cynical about their role” (x1) On having used the FIA in the past for commentary... “No, I have not” (x6) “Yes, I have” (x1) Of the “yes” answers (7): On identifying an FIA spokesperson… “I don’t know” (x6) “Justus” (x1) On receiving communication from the FIA / the last time they received info... “No I have not” (x5) “Once, a long time ago” (x2) On the type of information they would like to receive... “Anything / general” (x3) “Content for non-sophisticated investors / average consumers” (x3) “Answers to my reader questions” (x1)

26. Consumer media feedback: Brand knowledge cont… Of all surveyed: On who they use for commentary on savings, investment and healthcare issues… “ASISA / FSB” (x3) “Brian Hirsch” (x2) “Various regulatory bodies” (x2) “Banks” (x1) “PR companies” (x1) On being interested in receiving consumer-related media releases / industry commentary / event invites from the FIA... “Yes please” (x10) On their preferred communication format / channel… “E-mail” (x10) Research summary

27. Summary: Positive and negative results • Research summary (Positives) • 100% of all media (consumer and business) audited were interested in receiving media releases / information / invitations to events from the FIA • 70% of all media (consumer and business) audited had heard of the FIA • Research summary (Negatives) • 50% of all media (consumer and business) had no knowledge of the role that the FIA plays • 86% of consumer media could not identify an FIA spokesperson • Only 58% of business media could identify an FIA spokesperson • Only 30% of business media and 10% of consumer media have used the FIA for commentary • 80% of consumer and business media said that had not received proactive information or commentary in the past from the FIA Campaign to date: July - September 2010

28. Campaign objectives Monthly initiatives • Media relations: • Researched, conducted interviews, generated and disseminated 8 releases to the media: • 2. Internal communications • - From the CEO newsletters • Member communication letters: i.e. FSB levy increases, New Code of Conduct, STRIDE 1. Enhancing the perception of intermediaries among consumers via lifestyle-focused media; 2. Enhancing the perception of intermediaries among businesses and consumers via industry media (i.e. servicing the agricultural, engineering and medical sectors etc.); 3. Reinforce the FIA’s service offerings to intermediaries via business, financial and insurance trade media; 4. Position FIA professionals as experts and thought leaders within the investment, medical and insurance space in South Africa; 5. Build stronger media relationships. • New conflict of interest code requires greater transparency • Consumers down but not out when it comes to insurance • Consumers to benefit as FIA takes tough stance against unethical intermediaries • Farmers urged to use informed brokers • Insurers imposing stricter terms on brokers • Short –termism impacts on savings habits • Botswana insurance conference • RISKSA column: Big players keen to strengthen relationships with brokers

29. Results and ROI • RESULTS: JULY - SEPTEMBER 2010 • Delivered an average of 25 placements per month • Total number of editorial coverage achieved: 76 • - Print: 24 • - Online: 19 • - Radio: 17 • - Television 16 • Editorial value of coverage: R7 002 464.00 • Return on investment ratio: 83:1 times (Current industry ROI average is 3:1) Results

30. Breakdown of coverage to date by medium Results cont… • TOPIC(S) WITH THE BEST MEDIA RESULTS: TOP 3 • New conflict of interest code requires greater transparency (40 media hits) • Short termism impacts on savings habits (20 media hits) • Insurers imposing stricter terms on brokers (12 media hits) • MEDIA HIGHLIGHTS • Note: During the campaign, coverage was achieved in, among others: • eTV • SABC3 • Sunday Times • Business Day • Business Report • Beeld • Sake24 • Finweek • SAfm • Classic FM

31. Examples of coverage achieved

32. Examples of coverage achieved cont... Examples of coverage achieved cont... Examples of coverage achieved cont... Examples of coverage achieved cont...

33. Examples of coverage achieved cont...

34. Objectives Strategy going forward Objectives • Continue to enhance the perception of intermediaries among businesses and consumers via consumer, financial and industry trade media • Maintain regular news flow to key media via: • Media releases • Media pitches for interviews • 2. Maintain strong media relationships • Identify and secure regular one-on-one relationship building sessions between the FIA’s senior management and key journalists on a consistent basis (1 per month minimum) • 3. Continue to position FIA’s professionals as thought leaders in South Africa’s insurance, investment and medical space • Monitor topical industry and consumer issues for opportunities for proactive and reactive commentary • Draft and disseminate opinion / thought-leadership pieces • 4. Profiling senior executives • Motivate and secure profiling opportunities for key professionals - showcasing their skills-base - in relevant business, finance and industry trade media • 5. Assist with internal communication channels

35. Advisory council feedback • Responses from 43 of 65 (66%) • 40 responses to all 3 questions (62%) – a few not totally legible. • Three questions • Internal things that hinder our ability to achieve our goals • Internal things that help us to achieve our goals • Trends (positive and negative) outside our control

36. Internal Hindering factors

37. Internal Hindering factors (continued)

38. Internal Helping factors

39. External trends and factors

40. Next steps… • Have we given the executive all the information they will need to develop a strategic action plan? Actions:-

41. Overall strategic planning process... Today: everybody will have input here Current reality? Our Charter Purpose Focus Areas? Next month: Based on your input, Exco will identify key focus areas and action plans How? i.e. Action plans

42. Workshop facilitated by: Alan Kirschner Customer Diagnostics (Pty) Ltd Tel: +27 (0)11 465-5182 Fax: +27 (0)11 465-2041 Mobile: +27 (0)82 891-4268 Email: alan@customerdiagnostics.com Web site:  www.customerdiagnostics.com  PO Box 899, Fourways, Sandton, 2055 South Africa