2019 Integrated Report

CHAIRMANS STATEMENT (CONTINUED) owners will benefit from the new Business Assurance product, which has several cover options for the range of complex risks that businesses face. For members in the health professions we developed PPS Health Professions Indemnity, designed in response to the increasingly high costs of indemnity insurance, providing peace of mind to members in times of need. Our members with investment products can now benefit from the PPS Investments Family Network, which is designed to encourage the aggregation of individual and family assets. Members on Family Network enjoy lower fees because of the larger asset base. Lastly, an exciting change for our Namibian members is that we have expanded the product range available to them beyond just the Sickness and Permanent Incapacity benefit. This has clearly resonated with our members, as evidenced by the high uptake of lump-sum death, disability and critical illness benefits, which exceeded our launch targets. GLOBAL ISSUES As the third decade of the 21st century begins, the three biggest challenges facing the world as a whole are climate change and the resulting impact on biodiversity, income inequality and rapid technological change. In response to climate change and its impact on the environment, PPS is implementing responsible practiceswithregardtowaterandenergyconsumption and waste management. More importantly, we are cognisant of the significant impact that climate change is likely to have on investment markets and factor this understanding into our strategic planning. With regard to income inequality, it is sobering to acknowledge that we live in the most income-unequal country in the world. In other countries – from Chile to France – the issue of income inequality is coming to a head and citizens are challenging the status quo. Since we at PPS believe that the most sustainable remedy to income inequality is education, the PPS Foundation is actively involved in improving access to tertiary education and in supporting positive outcomes for beneficiaries of the Foundation’s programmes. Finally, as rapid technological advances continue to disrupt existing business models and practices across the globe, we are adapting and investing in new and better ways to serve our members. LOCAL ISSUES One risk that has become much more significant recently is the movement of professionals across country borders and, especially, emigration from South Africa. Professionals who have excellent qualifications and often extensive experience generally have a choice where they live and practice. This is obviously top-of-mind in our strategic thinking. Developments relating to the proposed National Health Insurance (NHI) have further highlighted the extent of this risk. Given our unique positioning among professionals, who are crucial to the successful implementation of any national healthcare strategy due to the skills they supply and the taxes they contribute, we are not shying away from our responsibility to influence these developments. With this in mind, I would like to thank members who have participated in the surveys that have informed our response to the issue. Thank you also to the executives and managers who were actively involved in compiling PPS’s submissions on not only the NHI Bill, but the Medical Schemes Amendment Bill as well. The official PPS commentary on the proposed NHI is available on our website. 26 | PPS INTEGRATED REPORT 2019