In terms of Board Notice 158 of 2014, insurance companies must have certain control functions in place. The following four key control functions are in place within the two PPS Group insurance companies:
The control functions are structured to include the necessary authority, independence, resources, expertise, access to the boards and all relevant employees, as well as information to enable them to exercise their authority and perform their responsibilities. Where appropriate, the Heads of Internal Audit and Actuarial Control functions may be outsourced – subject to the provisions of the Outsourcing Policy – in the light of the nature, scale and complexity of the business, risks, legal and regulatory obligations. The Actuarial Control functions are performed by Deloitte in terms of outsourced arrangements. Mr C van der Riet of Deloitte serves as the Head of the Actuarial Control function for PPS Insurance, while Mr J van der Merwe of Deloitte serves as the Head of the Actuarial Control function for PPS Short-Term Insurance. The Internal Audit Control function is performed by KPMG in terms of an outsourced arrangement. Ms I Fourie, of KPMG, serves as the Head of the Internal Audit Control function for both insurance companies. The Compliance and Risk Management Control functions are performed in-house and may only be outsourced with the approval of the Registrar. Mrs T Boesch serves as the Head of the Compliance and Risk Management Control functions for PPS Insurance. For PPS Short-Term Insurance, Mr H van Heerden serves as the Head of the Risk Management Control Function, while Mr J Andrews serves as the Head of the Compliance Control function.
The existence of the control functions does not relieve the boards of directors and trustees or senior management from their respective governance and related responsibilities. The governance framework will continue to evolve to ensure compliance with emerging legislation and to enhance the ability of the boards of directors and trustees, managing executives and heads of control functions to manage PPS soundly and prudently. The Actuarial, Audit, Risk, Remuneration and Social and Ethics committees fulfil a key role in ensuring good corporate governance within the PPS Group. Processes are reviewed regularly to ensure compliance with legal obligations and codes of governance.