20 / 184
PPS SHORT-TERM INSURANCE
Most professionals in South Africa will require some form of
short-term insurance. Although PPS launched its short-term
insurance just two years ago, this business is showing clear
signs of being amajor contributor to growing the PPS profit pool.
PPS Short Term Insurance (STI) is a fully-fledged insurance
company rather than a brokerage. We customise our own
bespoke offerings to the individual risk profiles of our members
and have control over the claims experience.
What we do
PPS only insures graduate professionals. As graduate
professionals have a specific risk profile, we can design and
price our offerings to align with each member’s individual
needs. PPS STI offerings are superior to the generic products
marketed by other insurers.
PPS has partnered with market leading Santam to design
products and a pricing model. Our client claims are managed
through Santam’s sophisticated claims processing centre.
Performance
STI's net income increased by 46% over the prior year to
R148.6 million. We again managed the business within budget
and achieved a better-than-expected claim-loss ratio.
In 2017, our second year of existence, we fell marginally behind
growth targets. Nevertheless, STI still recorded better than
budget results due to prudent management.
Prospects
Market conditions were exceptionally constrained due to South
Africa's underperforming economy and higher reinsurance
premiums resulting from 2017 catastrophes such as the
Knysna fires and Western Cape storms. A more favourable
economic and political climate in 2018 will be a boon for PPS
and our members.
As PPS STI products have been in the market for just two years
and in a weak economy, adoption by brokers has been slow
off a zero base. We are encouraged that each month we see
adoption by brokers climb steadily.
PPS INVESTMENTS
KEY INDICATORS
2017
FIVE-YEAR REVIEW
PPS Investments is a 100% owned
investment company that offers
investment, retirement and savings
products to PPS members.
Total assets
under administration
R28.6 billion
New business: flows
R4.0 billion
R’bn
R’bn
PPS
INTEGRATED REPORT
2017
18