Zena Sampson

EVERY DREAM DESERVES A PLAN PERSONAL FINANCE OPERATIONS-AFD SUMMARY Ops Comm Report February 2016 EVERY DREAM DESERVES A PLAN EXECUTIVE SUMMARY ◼ Customer and IMED Experience ▪ Excellent progress has been made to move the NPS YTD 2014 target from 47% to 50% by consistently acting on detractor feedback . Branch NPS is still an area of concern as the model is that staff are not knowledge workers and are seen as being inefficient as a result. ▪ YTD NES score has moved from 59% in 2014 to 64% in 2015. Excellent progress has been made by the Claims and New Business value chain owners as well as the case managem ent initiatives for BD and PFA. Very high NES scores have been received in the PFA service centers . The fo cus has been on keeping intermediaries informed about their cases as well as concentrating on reengineering and streamlining processes to promote ease of business with Old Mutual. ▪ YTD 2015 complaints as a % of customer volume targets have not been m et although overall there has been a 7.4% decrease by category compared to 2014. Poor quality and performance outside of expectations remain the major contributors. ◼ Information Technology ▪ December availability was well within target, however overall for 2015 the IT capability did not deliver to expectations. There was significant impact to the business which requires dedicated focus in 2016 to stabilize the IT infrastructure and support the business. ▪ MySeries continues to be intermittently available, and as the main digital interface for both Customer’s and Intermediaries, as well as support staff in CST and PF, it is key to ensure that in 2016 actions to improve the experience is taken ◼ Debt Management ▪ Focus has shifted to mitigating future debt risk. New reports have been designed to refl ect the quality of the appointments that are done in AFD and PFA. Strict business rules at appointment stage can prevent the unnecessary build up of debt ▪ The Contract Team is currently involved with the implementation of processes and rules for AFD, EVERY DREAM DESERVES A PLAN EXECUTIVE SUMMARY ◼ Debt Management (continued) ▪ Major focus for the team was on the implementation of the New BD Rem (booklets, statements, questions & answers, etc.) and the OMREB Mandate Outcome = yes ▪ Despite the challenges around manual intervention for payment to intermediaries and management on the PFA and AFD Rem Models the team were successful with the Payroll Process for January. Commission queries from the Field is mainly from PFA at 67% of all queries received, AFD = 1% and BD = 9%. ◼ Persistency ▪ 3 and 12 month GL persistency had an unusual upswing and is 3.6% ahead of target at 79.2% for the month, after ending 2015 on 75.8% (down 0.3% on 2014). GL 12 month persistency is expected to drop back to below 77% next month, but experience for the year should be better than 2015. ▪ Max is 2.8% below target at 70.1% for the month, after ending 2015 on 73.4% (down 1.1% on 2014). Max 12 month persistency is expect ed to improve slightly from this level and fluctuate around 71.5% for the rest of the year, but affordability pressure due to the economic climate and sales to the wrong target market continues to put downward pressure on the results. ◼ Service Value Chains ▪ New Business issued 23,338 cases in January 2016 compared to 20,389 in January 2015 and issued 2’588 cases after the cut-off. C ycl e time for GL and Max Income were outside of the target numbers, with Max investments continuing to deliver within a 4 day period. Detailed activities to drive IT enhancements and quality of submissions continues to be a focus in 2016 ▪ SARAF governances have been enhanced to ensure there is sufficient focus on the remediation plan to address trustee concerns ▪ Claims POC has showed excellent benefits with significantly reduced cycl e times. A review is underway to determine the implementation plan. EVERY DREAM DESERVES A PLAN KEY RISK INDICATORS (KRI’S) Theme Experience Costs Component Target Actual Actual YTD NPS 49% 52% 50% NES 57% 68% 68% Complaints 0.59% 0.04% 0.04% IT Impact 18 hours 10.2 hours 10.2 hrs Overall SLA 100% 106% 102% NB CPP R 294 FY TBC TBC Maintenance CPP R 8.52 FY TBC TBC Debt Management Persistency 3 Month Quality Persistency 12 Month Cycle Time Purchase GL 92.0% 88.8% 88.8% Max Inv 92.0% 89.6% 89.6% GL 79.0% 79.2% 79.2%% Max Inv 75.5% 70.1% 70.1% Greenlight 10.00 11.75 11.75 Max Income 15.00 22.95 22.95 4.50 3.37 3.37 Greenlight 25.00 21.24 21.24 Max Income 36.00 32.30 32.30 Max Inv 28.00 27.63 27.63 Max Inv Efficiency Cycle Time Death Claims RAG Commentary EVERY DREAM DESERVES A PLAN CUSTOMER AND INTERMEDIARY EXPERIENCE – NPS & NES EVERY DREAM DESERVES A PLAN CUSTOMER AND INTERMEDIARY EXPERIENCE – COMPLAINTS Complaints Volume Complaint objectives 2014 Actual 2015 YTD 2014YTD 2015 Variance YTD  12,016 11,124 12,016 -7.4%  2015 YTD Actual YTD  2015 Dec Actual 2014 Dec Actual 2014 YTD Actual New complaints receiv ed – m ovement: Total: ▪ Adv ice & Fraud /Financial crimes ▪ Fund, Product & Performance ▪ Serv ice & Administration Complaints as % of Customer Volume Total Complaints PF (Based on Nov Cust Number) 2015 Complaint objectives - - +16.6% +28.0% 0.0% +17.6% 12,-,139 11,-,229 -7.4% +4.1% -1.6% -9.0%     Target YTD Target YTD Actual Dec vs Nov YTD  0.43% 0.43% 0.54% p  2015 Target 2015 Dec Actual 2015 YTD Actual YTD  96% 96% 96% 96.7% 95.2% 100% 88.6% 86.2% 98.7%    Efficiency: turn-around time – SLA achieved: Total: ▪ Lev el 1 ▪ Lev el 2 & 3 10 working days SLA As per stakeholder SLA Commentary: - Service related complaints relates to 87% of all new complaints received. Key trends are: Customer expectation of service delivery inconsistent with agreed service delivery Poor Quality / Staff errors Non delivery on Commit ments made by staff Incorrect/Incomplete Information & Documentation requested Staff Behaviour 48.6% 34.5% 4.9% 3.9% 2.3% EVERY DREAM DESERVES A PLAN INFORMATION TECHNOLOGY- 27 25 19 18 21 21 39 33 28 27 24 20 10 43 39 25 13 25 13 17 16 14 10 0 Jan R Feb Mar Apr May R R R G 2014 IT Scorecard Impacted Hours Jun Jul Aug Sep Oct Nov R R R R R 2015 IT Scorecard Impacted Hours R Dec G SLA Problem management Month New Problems IT Scorecard Impacted Hours SLA Agreed December 10:25 10:25 18 Average ytd 30:17 27:24 18 Call Centres No. of incidents 0 No. of problems 0 % of Total hours 0% New Business 3 1 19% 02:00 3 3 14% 01:30 5 4 22% 02:19 0 1 8 20 0 1 2 11 0% 3% 41% 100% 00:00 00:21 04:15 10:25 Hours Fund Accounting / Pricing / Banking Infrastructure serv ices DMS Bizagi Web Total Impact Hours 00:00 • Business downtime for December was 10:25 hours (14 hours RCA RCA Pending Completed Known Error Pending Remediated / Change Monitoring Closed Achieved closure % October 31 0 11 7 0 1 12 39% Nov ember 22 7 7 4 0 0 4 18% December 22 9 10 3 0 0 0 0% YTD Total 463 19 46 58 2 7 128 71% Commentary: Business Impact Hours Business Area 26 25 Period – 2014) v ersus target of 18 hours • 11 Unique problem tickets were created against the 20 Major Incidents. • No re-occurrence of closed problem tickets . • W eb and other Infrastructure the highest impacted areas EVERY DREAM DESERVES A PLAN DEBT MANAGEMENT Recoveries: Across Channel (December 2015 Ytd) Personal Finance Debt Recoveries BD PFA 4,806,534 5,067,773 40 R12mil 35 30 25 R20mil R8.9 mil 20 15 2014 2013 R12mil 10 5 2015 AFD R1.9mil R5mil R7mil 0 Commission Debt Recoveries R4mil CNO Debt Recoveries R1.2mil R3mil R3mil R14mil Academy Debt Recoveries Total 2,164,557 Commentary: ▪ Recoveries have struggled during the year 2015 compared to the year 2014. ▪ The result is that we are now behind our YTD plan by R13m. ▪ Compared to 2014, we have recovered far less Commission debt this year, debtor affordability remains one of the biggest challenges in debt recovery. ▪ BD’s successful recoveries lies within the automated act ive debt management process and the fact that rigorous contracting processes control the risk upfront. EVERY DREAM DESERVES A PLAN PERSISTENCY – 3,12, AND 24 MONTH VIEW BY CHANNEL 3 Month Indicators Persistency (as at 31 January 2016) 12 Month Indicators Actual YTD Target Var to Plan Actual YTD Target Var to Plan PFA Greenlight M ax Investments 87.7% 88.8% 87.7% 88.8% 91.9% 92.2% -4.5% -3.7% A A 79.2% 69.7% 79.2% 69.7% 76.7% 72.1% 3.2% -3.3% PFA: Academy Greenlight M ax Investments 83.5% 86.0% 83.5% 86.0% 90.0% 91.5% -7.2% -6.1% R R 72.9% 61.6% 72.9% 61.6% 71.0% 64.0% PFA: Established FA Greenlight M ax Investments 91.5% 91.3% 91.5% 91.3% 93.0% 92.5% -1.6% -1.3% A A 81.7% 72.8% 81.7% 72.8% BD Greenlight M ax Investments 91.8% 90.8% 91.8% 90.8% 93.0% 92.5% -1.3% -1.9% A A 82.2% 75.2% AFD Greenlight M ax Investments 91.1% 92.0% 91.1% 92.0% 91.5% 91.0% -0.4% 1.1% A G Direct Financial Advice: Emerald Greenlight M ax Investments 88.0% 89.8% 88.0% 89.8% 92.0% 92.0% -4.3% -2.3% Retail Affluent Greenlight M ax Investments Greenlight and M ax Investments 88.8% 89.6% 89.0% 88.8% 89.6% 89.0% 92.0% 92.0% 92.0% -3.5% -2.6% -3.3% 24 Month Indicators Actual YTD Target Var to Plan G A 63.8% 59.7% 63.8% 59.7% 65.5% 61.0% -2.7% -2.2% A A 2.7% -3.8% G A 50.8% 42.7% 50.8% 42.7% 55.0% 48.0% -7.7% -11.0% A R 80.0% 76.0% 2.1% -4.2% G A 67.4% 63.6% 67.4% 63.6% 69.0% 64.5% -2.4% -1.4% A A 82.2% 75.2% 80.0% 76.0% 2.8% -1.1% G A 65.2% 63.9% 65.2% 63.9% 69.0% 64.5% -5.6% -0.9% A A 75.1% 63.5% 75.1% 63.5% 72.0% 66.0% 4.2% -3.8% G A 52.0% 51.9% 52.0% 51.9% 59.5% 53.0% -12.7% -2.1% R A A A 73.0% 61.9% 73.0% 61.9% 79.0% 76.5% -7.6% -19.1% R R 60.0% 53.6% 60.0% 53.6% 69.0% 69.0% -13.0% -22.3% R R A A A 79.2% 70.1% 76.8% 79.2% 70.1% 76.8% 76.5% 72.0% 75.5% 3.6% -2.6% 1.8% G A G 62.5% 59.7% 61.7% 62.5% 59.7% 61.7% 65.0% 61.0% 64.0% -3.8% -2.1% -3.6% A A A EVERY DREAM DESERVES A PLAN PERSISTENCY – SALES IN TARGET MARKET EVERY DREAM DESERVES A PLAN PERSISTENCY- COMMENTARY ◼ ◼ 3-month cohort trend ▪ Greenlight 3-month persistency has reduced by 0.6%. AFD decreased by 0.9%, PFA decreased by 1.3% and BD improved by 3.0%. ▪ In AFD, the B Ellis region dropped to 88.9%. There are a few teams in this region who have issued a large proportion of busi ness with poor persistency. PFA showed poor performance across Gauteng, Eastern Cape, Northern and Western Cape regions, with Gauteng and Northern Region as the biggest negative contribution. Bottom teams and advisers identified to drive focused action in the reg ions. BD recovered well after deteriorating for 2 consecutive months largely due to performance of 1 broker, and only East Coast regio n underperforming. ▪ Max 3-month persistency has reduced by 1.2%. AFD increased by 0.8%, PFA decreased by 1.3% and BD decreased by 1.9%. ▪ In AFD, the B Ellis region persistency reduced from 94% to 89.9%. All other regions showed an improvement. In BD, Gauteng an d Inland Independent regions drove the overall decrease, with 2 brokers featuring consistently in the bottom 10. In PFA, Gauteng and N orthern regions continue to show poor results. ▪ We have started tracking 4 month persistency specifically to focus on the significant drop off experience at early durations on Max business. ▪ The PFA book is also split between EFA (established) and ACA (academy), with distinct targets for these groups. EFA advisors have more than 2 years experience and ACA advisors have less than 2 years of experience. 12-month cohort trend ▪ 12 month persistency for January 2016 ( business issued in Feb 2015) is at 76.8% for PF. This is 1.3% ahead of target. With t he exception of DFA, all channels outperformed the Greenlight target for 2016. For Max, all channels ended below target. ▪ Greenlight had an unusual upswing and is 3.6% ahead of target at 79.2% for the month, after ending 2015 on 75.8% (down 0.3% o n 2014). We expect Greenlight 12 month persistency to drop back to below 77% next month, but experience for the year should be better than 2015. ▪ Max is 2.8% below target at 70.1% for the month, after ending 2015 on 73.4% (down 1.1% on 2014). We expect Max 12 month persi stency to improve slightly from this level and fluctuate around 71.5% for the rest of the year, but affordability pressure due to t he economic climate and sales to the wrong target market continues to put downward pressure on the results. EVERY DREAM DESERVES A PLAN RAG Status: VALUE CHAINS - PURCHASE Issued 23338 cases in January 2016 compared to 20389 in January 2015 and we issued 2588 cases after the cut -off. Significant delay in submitting outstanding requirements. Around 2 days have been added to cycle times compared to end of 2015. This is due to th e holiday period. Focus on Max Income open cases report to get cases issued sooner for internal money transfers Cycle Time Target Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD Greenlight 10 days 11.75 11.75 Max Income 15 days 22.95 22.95 Max Investment 4.5 days 3.37 3.37 Max Income: • • • To achieve cycle times we need a major shift within the intermediary submission of outstanding's and the processing of money transfers Our findings highlighted that 17% of the cases were delayed due to delays in submission of documentation for 30 days and more . More than 10% of our Max Income cases are submitted weeks prior to the vesting date and this impacts the cycle time as the case is awaiting do cumentation and final transfer of monies post vesting. Actions to date: Effective 25 Jan we have dedicated resources assisting with facilitating the issuance and flow of monies of the Max Income ca ses across all areas. We have also initiated an auto ROT POC and will be implementing a “How to guide” and other training resources to improve Imed submission and understanding of this process. Greenlight: • • • To achieve this we need a minor shift within the intermediary submission pattern. We have done some analysis and less than 5 % (400 cases)of our intermediaries are required to reduce the waiting time on the requirements gathering gate to achieve a cycle time of less than 10 days. The analysis show that the average wait time for these 400 cases are 47.3 days There are some IT initiatives awaiting prioritisation within the IT build shop that will further improve the cycle time but these deliveries have been delayed indefinitely to accommodate the Greenlight “as and when” releases EVERY DREAM DESERVES A PLAN RAG Status: VALUE CHAINS - CLAIMS Issued 23338 cases in January 2016 compared to 20389 in January 2015 and we issued 2588 cases after the cut -off. Significant delay in submitting outstanding requirements. Around 2 days have been added to cycle times compared to end of 2015. This is due to th e holiday period. Focus on Max Income open cases report to get cases issued sooner for internal money transfers Cycle Time Target Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD Greenlight 10 days 11.75 11.75 Max Income 15 days 22.95 22.95 Max Investment 4.5 days 3.37 3.37 Max Income: • • • To achieve cycle times we need a major shift within the intermediary submission of outstanding's and the processing of money transfers Our findings highlighted that 17% of the cases were delayed due to delays in submission of documentation for 30 days and more . More than 10% of our Max Income cases are submitted weeks prior to the vesting date and this impacts the cycle time as the case is awaiting do cumentation and final transfer of monies post vesting. Actions to date: Effective 25 Jan we have dedicated resources assisting with facilitating the issuance and flow of monies of the Max Income ca ses across all areas. We have also initiated an auto ROT POC and will be implementing a “How to guide” and other training resources to improve Imed submission and understanding of this process. Greenlight: • • • To achieve this we need a minor shift within the intermediary submission pattern. We have done some analysis and less than 5 % (400 cases)of our intermediaries are required to reduce the waiting time on the requirements gathering gate to achieve a cycle time of less than 10 days. The analysis show that the average wait time for these 400 cases are 47.3 days There are some IT initiatives awaiting prioritisation within the IT build shop that will further improve the cycle time but these deliveries have been delayed indefinitely to accommodate the Greenlight “as and when” releases EVERY DREAM DESERVES A PLAN PROJECTS PF OPERATIONS P LICENCE TO OPERATE Cat. NR Project Owner 1 OMSA AML project AJ 2 OMSA FATCA project AJ 3 4 FSB Notice 158 of 2014: Gov and Risk Framework for Insurers – Internal Control system PF and W ealth Strategic Rev iew Programme (SRP) SRP 3 Value chain and operations AJ GM 5 Project Tangled HDg 6 RAF XPLAN Tactical Deployment GM 7 RAF PF Operations TOM Project GM a Rev iew: DFA Take on GP b Rev iew: Commission payment / Incentiv es / BIU cluster/DMU VF 8 PFA Serv ice Model AS 9 BD Case Management BF 18 RAF IT Road Map MV 19 OMSA Eskom/Power Outages project MV 20 RAF Persistency project GP 21 New Mobile Deal MV Objective Status RAG