The principles of mutuality as well as the objectives to operate ethically, responsibly and within the confines of applicable legislation are key considerations, which determine PPS’ risk appetite.
PPS is cognisant of the key business risks, as outlined below, which may have a material impact on our operations. Strategies are in place to mitigate these risks wherever possible.
|1. Market risk and volatile investment return||Long-term investment horizon|
|Balanced portfolios with international exposure|
|Multiple asset managers|
|2. Slow economic growth||Grow our brand awareness|
|Develop and add new products|
|Penetrate B-Tech segment of market|
|3. Competitor activity||Ensure competitiveness of products and services|
|Expand our own distribution force|
|4. Poor perception and/or lack of understanding of the PPS Profit-Share Account in the youth market||Focused activities on campuses and innovative use of social networking and media to educate students and graduates|
|5. Poor communication of the value of the mutual model||Member roadshows|
|Launch of interactive integrated report|
|Focused email campaigns|
|6. Lack of affordability of insurance in the youth market||Development and launch of low premium, entry level products|