2020 INTEGRATED REPORT

MATERIAL MATTERS AND RISK MANAGEMENT (CONTINUED) DEVELOPING INNOVATIVE PRODUCTS, SERVICES AND SOLUTIONS DEFINING THE ISSUE: In an environment defined by the rapid emergence of new technologies, insurers are able to analyse customer data and bring new products to market quickly. We strive to maintain a deep understanding of our members and their needs so that we are consistently able to design and launch customised and relevant products, services and solutions. PPS’S RESPONSE: We continuously engage with our members in order to maintain an understanding of and insight into their dreams, goals and requirements. Drawing on this, we endeavour to develop, launch and improve our products and services. Details of recent innovations are given in the Innovations section of this report. DIGITAL TRANSFORMATION DEFINING THE ISSUE: Large-scale digitalisation has fundamentally changed the way in which people engage. Professionals operating in an internet-enabled 24/7 information- sharing and transacting environment measure the standard of the services of their financial services provider against the standard of service they can or could receive from all other providers, including their banks and online retailers like Amazon. They have come to expect constant multi-channel access to providers, as well as features such as paperless transactions, speed, efficiency, transparency and remote advice. PPS’S RESPONSE: At PPS, we use technology to improve all aspects of our business. Our technologies include a member and financial-adviser engagement platform, a multi- platform internet presence, a tool to calculate actual and potential Profit-Share, a data analytics platform that draws on various data points, a security platform powered by AI and a robotics initiative. Analysing and responding to technological developments is a fundamental aspect of our commitment to continuous improvement. EMPLOYEE WELLBEING DEFINING THE ISSUE: In a country characterised by a pervasive shortage of skills, the ability to attract, develop and retain talent is vital. More than that, we believe that the way in which we treat our employees ultimately defines how they treat our members. Managing employee satisfaction is therefore a very important material matter of the business. PPS’S RESPONSE: Our full response to this challenge is outlined in the Human Capital section of this report. In 2020, despite having to work while dealing with numerous disruptions, employee engagement and satisfaction improved. For example, engagement in the annual employee satisfaction survey increased from 60% to 70%. This is a major milestone for us; a knock-on effect resulting from our efforts to ensure that employees are more connected, involved and informed. REGULATORY ISSUES DEFINING THE ISSUE: As a financial institution, we comply will all laws and regulations governing the industry. There should, however, be a balance between protecting customers, supporting the stability of the financial system and onerous, voluminous legislative requirements, which are constantly changing. PPS’S RESPONSE: After extensive research and analysis, PPS has developed its own complete Own Risk and Solvency Assessment, which consistently demonstrates that the Group is prudently managed. We also actively engage with government and regulators on matters that can, or do have an effect, on our members and the professional community as a whole. RISK MANAGEMENT PPS takes care of the financial interests of its members by providing advice, products and services to create, protect and manage their wealth. The Group’s risk appetite is determined by its ethos of mutuality and its responsibility to operate efficiently 70 | PPS INTEGRATED REPORT 2020