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MATERIAL MATTERS
PPS defines a material matter as an item that can directly or indirectly create, preserve or erode financial, economic,
environmental and social value for the Group and its stakeholders. Our internal and external influencers were
considered when determining and prioritising the materiality of the following matters, and our strategic response.
DEVELOPING RELEVANT PRODUCTS AND SOLUTIONS
Why this is important
The rapid emergence of new technologies enables innovative insurers to analyse customer data and take new
products to market quicker. With a deep understanding of our target market, PPS needs to continuously design
more appropriate and customised products to remain relevant.
Challenges and opportunities
Challenges
Opportunities
• Cost of developing product prototypes into effective
and scalable solutions
• Balance sheet and human resource availability
• Inculcate a learning mindset, continuous improvement
and flexible responses to change
• Investigate partnerships for rapid deployment of
best-in-class solutions
PPS’s response
A 2018 highlight in innovation was launching our own Platinum Credit Card for members and linked Payment
Solutions for business owners. Linked to our rewards programme, the PPS card uniquely enables members to grow
their Profit-Share Accounts simply by using the credit card. This will be further enhanced in 2019 by a banking
proposition that meets the needs of younger professionals.
WEAK ECONOMIC ENVIRONMENT
Why this is important
The sluggish economic environment makes signing up new business difficult, while insurance claims generally
rise as the cost of living increases. Short-term insurance products can become less affordable, while newly
graduated or younger professionals may not perceive the immediate value in joining PPS, as their profit-sharing
rewards seem distant.
Challenges and opportunities
Challenges
Opportunities
• Political uncertainty and currency volatility
• ‘Scramble’ for clients and a convergence of services
around the clients as banks, insurers, mobile phone
operators and retailers all compete for share of wallet
• Position PPS as a holistic, comprehensive financial
services provider for professionals, increasing
member product crossholding
• Grow new overseas markets
• Diversify alternative revenue streams
PPS’s response
PPS looks beyond short-term returns to focus on creating and sustaining long-term growth and wealth for our
members. This approach yields the best results for our members over the medium to long term, therefore we
don’t have a knee-jerk response to short-term factors. The weak economic environment is taken into account
when developing a long-term investment strategy.
A weak economic environment often leads to higher lapses and more claims. Because PPS only insures graduate
professionals, our risk pool is quite benign, leading to superior lapse rates and a good claims experience.
PPS
INTEGRATED REPORT 2018
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