- South Africans are vulnerable to financial shocks but there remains a large insurance gap, despite over R60 billion paid annually in claims. - While SA's unequal economy contributes, product-centric distribution and low-value policies are also to blame for the gap. - Simply aims to use technology, data, and behavioral science to address these issues by providing great-value life insurance directly to consumers.

1. A Disruptive Direct Life Company
LIFE INSURANCE AS A
FORCE FOR SOCIAL GOOD
Simply.co.za

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Life insurance as a force for social good
• South Africans are extremely vulnerable to financial shocks
• Despite more than R60Bn in annual claims payments, the
insurance gap is huge
• While SA’s economy is a big part of the problem, product-centric
distribution and low value products are also to blame
• Simply is using tech, data and behavioural science to address
these issue and put a dent in the insurance gap

3. A Disruptive Direct Life Company
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Very little saved for a rainy day
SOURCE: Budget Insurance Survey, 2019
Only 19% of South Africans would be
able to survive for three months if
they were to lose their income.
26% of South Africans would need to
borrow from friends or family if an
unexpected R10,000 emergency
occurred.

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Figure 1: Percentage of children aged 0-6 living with their biological parents, 2016
Heavy dependency on single moms
NOTE: Figures have been rounded off
SOURCE: http://www.statssa.gov.za/wp-content/uploads/2018/03/Mbalo-Brief-March-2018.pdf
WithFather2%
With Mother
46%
With Both
40%
With Neither
12%

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Life insurance as a force for social good
• South Africans are extremely vulnerable to financial shocks
• Despite more than R60Bn in annual claims payments, the
insurance gap is huge
• While SA’s economy is a big part of the problem, product-centric
distribution and low value products are also to blame
• Simply is using tech, data and behavioural science to address
these issue and put a dent in the insurance gap

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Life and disability claims paid, full year to June 2018
Rm
The life industry plays an important role
SOURCE: ASISA Long Term Insurance Statistics to June 2018
35,121
61,066
6,682
13,051
6,212
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Individual
death
Individual
disability
Group death Group
disability
Total

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Life
R/person
But the life insurance gap remains huge…
-1,000,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Poorest
20%
2nd
Quantile
3rd
Quantile
4th
Quantile
Richest
20%
Insurance need Actual cover Insurance gap
Cover/need 4% 7% 16% 25% 47%
Total gap (Rbn) 171 906 1 835 3 284 6 661
SOURCE: True South Gap Study, 2016
Total cover:
R7.4tn
Total gap:
R12.8tn
Total need:
R20.2tn

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… and the disability gap even bigger
SOURCE: True South Gap Study, 2016
Disability
R/person
Cover/need 197% 64% 37% 30% 45%
Total gap (Rbn) (512) 621 2 132 4 491 9 233
-1,000,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Poorest
20%
2nd
Quantile
3rd
Quantile
4th
Quantile
Richest
20%
Insurance need Actual cover Insurance gap
Total cover:
R13.0tn
Total gap:
R15.9tn
Total need:
R28.9tn

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Life insurance as a force for social good
• South Africans are extremely vulnerable to financial shocks
• Despite more than R60Bn in annual claims payments, the
insurance gap is huge
• While SA’s economy is a big part of the problem, product-
centric distribution and low value products are also to blame
• Simply is using tech, data and behavioural science to address
these issue and put a dent in the insurance gap

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One of the most unequal societies on the planet
SOURCE: time.com

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Table 10: Demographics of earners in each of the earning segments
Earn more than R18k per month? You’re in the top 20% 
SOURCE: True South Gap Study, 2016
Segment
Segment bounds (net
earnings)
Number of earners
(million)
Average annual net
earnings (Rand) Average age
Poorest 20% Up to R26 310 p.a. 2.8 10 396 37
2nd Quantile R26 311 to R54 272 p.a. 2.8 32 463 36
3rd Quantile R54 273 to R102 305 p.a. 2.8 64 889 37
4th Quantile R102 306 to R214 244 p.a. 2.8 136 358 39
Richest 20% More than R214 245 p.a. 2.8 498 615 42
All 14.0 148 555 38

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Around 10m consumers have impaired credit records
SOURCE: www.ncr.org.za
Of 25.9m credit-active consumers as at end December 2018
5%
10%
25%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Judgments and
administration
order
Adverse listing 3+ months in
arrears
Impaired records

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The vast majority of new premium goes into small policies…
SOURCE: Swiss Re Volume Study, 2016; Simply analysis
New premiums
Rbn
Sum insured
Rbn
1.6
2.0
9.3
Large Medium Small
411.4
479.9
303.5
Large Medium Small
Shifting 50% of
Small premium
to Medium
would increase
cover written
annually by
~R1.1tn (~92%)
Lump sum benefits Income benefits
Small R1 to R400k R1 to R19.5k
Medium R400k to R2.3m R19.5k to R41k
Large More than R2.3m More than R41k

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…which are dominated by funeral and credit life policies…
SOURCE: Swiss Re Volume Study, 2016; Simply analysis
New premiums
Rbn
6.3
1.4
1.6
Funeral Credit Life Other
Cover written
Rbn
119.0
55.4
129.1
Funeral Credit Life Other
Number of policies
m
4.4
1.4
1.4
Funeral Credit Life Other
Shifting 50% of Credit and Funeral premiums
to Other would increase cover written by
~R223bn p.a. (74%)

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Life insurance as a force for social good
• South Africans are extremely vulnerable to financial shocks
• Despite more than R60Bn in annual claims payments, the
insurance gap is huge
• While SA’s economy is a big part of the problem, product-centric
distribution and low value products are also to blame
• Simply is using tech, data and behavioural science to address
these issue and put a dent in the insurance gap

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Simply: a digital life insurer* with a strong sense of purpose
Harness exponential
drivers …
… to provide great
value life cover at the
right time and place …
• E-commerce adoption
• Cheaper, faster internet
• Smartphone proliferation
• Machine learning & AI
• Social networks & peer
review
• Cloud computing
• Multi-channel distribution
• Guided choice
• No fuss, no frills
protection products
• Instant cover
• Minimal underwriting
• Great value
… to
fundamentally
improve the
financial
futures of
millions of
people
* Simply is not technically a life insurer; Simply policies are underwritten by Old Mutual Alternative Risk Transfer Limited

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Main USP: keep life simple

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Product set: designed with the SA’s challenges in mind

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Thanks for listening
ant@simply.co.za
@antmiller1
SOURCE: Quotefancy