This webpage is a direct marketing campaign conducted on behalf of Hollard. The information on the webpage complies with the terms and conditions of the Hollard website, which are stated below.
This site also complies with the terms and conditions of the 3rd party stated above Hollard’s terms and conditions.
By agreeing to the below terms and conditions, I authorise 3 Way Marketing, or any person acting on its behalf, to consent on my behalf to the receipt of electronic direct marketing by completing the prescribed form as required by section 69(2) of POPI, once available. I hereby direct 3 Way Marketing not to request such consent from me, but to provide or deliver such request to itself, as my agent, in terms of this clause. Furthermore, I consent to 3 Way Marketing collecting my personal information from third parties or to contact me to request my personal information to complete said consent. I acknowledge that I can withdraw this authorisation at any time.
(“the Website”) is an online insurance lead generation website, which enables users (“you, your”) to enter their contact information on a single website and have various insurance companies call you back. (“we, us, our”) only deal with reputable insurance companies, and may submit your details to a variety of insurance companies or brokers of our choice.
Use Of Site
You may only use the website to browse the content, enter legitimate information, and may not use the website for any other purposes. You warrant that you will only enter true and accurate information. You may only use the website, if you are over 18 years old. The website and the content provided on it may not be copied, reproduced, republished, uploaded, posted, transmitted or distributed. Deep-linking, embedding or using analogous technology is strictly prohibited. Unauthorised use of the website or the materials contained on the website may violate applicable copyright, trademark or other intellectual property laws or other laws.
By not opting out of any digital communication from us and our partners, you give consent to JAG, 3Way Marketing and its partners to use your information for marketing purposes. You may receive communication from us via multiple channels, such as, but not limited to: automated voice messages, SMS’s, e-mail and outbound calls from us or our partner call centres. In the event that you opt out of this service or campaign, you will still be marketed to for other products or services, unless you decide to completely opt out of all marketing campaigns by registering on the National Do Not Contact List, which can be found on www.dmasa.org.
Your Privacy Rights
We will use our reasonable efforts to maintain the website. The website is subject to change from time to time. You will not be eligible for any compensation should your use of any part of the website be affected in anyway and or because of a failure, suspension or withdrawal of all or part of the website due to circumstances beyond our control. We may:
We hold the right in our sole and absolute discretion, to monitor any activity and content associated with the website. We may investigate any reported violation of these terms or complaints and take any action that we may deem appropriate which may include, but is not limited to, issuing warnings, suspending, terminating or attaching conditions to your access, or the removal of any materials from the website.
The Terms will be exclusively governed by and construed in accordance with the laws of South Africa, whose courts will have exclusive jurisdiction in any dispute.
When you visit the website or send e-mails to us, you are communicating with us electronically. Your use of the website will be deemed your consent to receive communications from us electronically, which will allow us to communicate with you via e-mail, SMS or any other electronic means. You agree that all agreements, notices, disclosures and other communications that we provide to you electronically, satisfy any and all legal requirement that such communications be in writing.
All content included on the website, including but not limited to, text, graphics, logos, button icons, images, audio clips, digital downloads, data compilations, and software, is our property or the property of our content suppliers and is protected by international intellectual property laws.
All software used on the website is our property or that of our software suppliers and is protected by international intellectual property laws.
The registered and unregistered trademarks, names, logos and service marks displayed on the website belong to us. Nothing contained on the website, except as expressly stated in these terms, will be construed by you as the granting of any license or right to use any trademark without our prior written permission. All rights in and to the content and trademarks are reserved and retained by us or our content suppliers. You further acknowledge that we, or our content suppliers are the proprietors of all the content and trademarks on the website, whether it constitutes confidential information or not, and that the you hold no right, title or interest in any such material.
WE MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE OPERATION OF THE WEBSITE OR THE INFORMATION, CONTENT, MATERIALS, AND/ OR PRODUCTS INCLUDED ON THE WEBSITE. YOU EXPRESSLY AGREE THAT YOUR USE OF THIS SITE IS AT YOUR SOLE RISK.
TO THE FULL EXTENT PERMISSIBLE BY APPLICABLE LAW WE DISCLAIM ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WE DO NOT WARRANT THAT THE WEBSITE, ITS SERVERS, OR E-MAIL SENT FROM US ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS. WE WILL NOT BE LIABLE IN ANY WAY FOR ANY DAMAGES OF ANY KIND ARISING FROM THE USE OF THIS SITE, INCLUDING, BUT NOT LIMITED TO DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, AND CONSEQUENTIAL DAMAGES.
NEITHER US NOR OUR DIRECTORS, EMPLOYEES, OFFICERS, SUPPLIERS, OR SERVICE PROVIDERS MAKE ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND INCLUDING, BUT NOT LIMITED TO, EXPRESSED OR IMPLIED REPRESENTATIONS OR WARRANTIES, AS TO THE OPERATION OF THE WEBSITE OR THE INFORMATION, CONTENT, MATERIALS, OR PRODUCTS INCLUDED ON THE WEBSITE. YOU EXPRESSLY AGREE THAT YOUR USE OF THE WEBSITE IS AT YOUR SOLE RISK. IN NO EVENT, SHALL WE, OUR DIRECTORS, EMPLOYEES, OFFICERS, OR OUR SUPPLIERS OR SERVICE PROVIDERS BE LIABLE FOR LOST PROFITS OR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE WEBSITE, OUR SERVICES OR THE TERMS AND CONDITIONS (HOWSOEVER ARISING, INCLUDING BUT NOT LIMITED TO NEGLIGENCE). OUR LIABILITY OF AND THAT OF OUR DIRECTORS, EMPLOYEES, OFFICERS, SUPPLIERS, OR SERVICE PROVIDERS TO YOU OR ANY THIRD PARTIES IN ANY CIRCUMSTANCE IS LIMITED TO R500.00.
We grant you a limited license to access the website. This license does not permit any resale or commercial use of the website or its contents; any collection and use of any product listings, descriptions, or prices; any derivative use of the website or its contents; any downloading or copying of account information for the benefit of another merchant; or any use of data mining, robots, or similar data gathering and extraction tools.
ECT ACT DISCLOSURES
Access to the content on or through the Service and the Website itself are classified as “electronic transactions” in terms of the Electronic Communications and Transactions Act (No. 25 of 2002), as amended from time to time (“ECT Act”), and therefore you have the rights detailed in Chapter VII of the ECT Act and we have the duty to the disclose the following information:
Our full name and legal status: 3 Way Marketing CC
Street address: 312 Kent Avenue, Randburg, Johannesburg
Postal address: 312 Kent Avenue, Randburg, Johannesburg
Physical address for receipt of legal service: 312 Kent Avenue, Randburg, Johannesburg
Main business: Direct Marketing
Website address: http://www.3waymarketing.co.za/
Official email address: firstname.lastname@example.org
Membership of self-regulatory or accreditation bodies: DMA
Manual in terms of the Promotion of Access to Information Act 2 of 2000:
Management: Tom Goldgamer and Danny Aaron
Costs associated with the access to and use of the Service: There are no costs associated with accessing the Service
Dispute resolution: No specific dispute resolution process
Complaints process: If you have any complaints or would like more information please mail email@example.com
We at Hollard value the importance of protecting your personal information and we subscribe to the principles as outlined in Section 51 of the Electronic Communications and Transactions Act 2002.
Personal information for the purpose of this document means all information specific to you, which are provided to Hollard via the internet. In other words, information that identifies you. This includes for example the following personal information that you may provide to Hollard to obtain inter alia an online quotation:
Here at Hollard, we value the information you choose to provide and which we collect from you and will take reasonable steps to protect your personal information from loss, misuse or unauthorised alteration. The information we maintain concerning you is stored in databases that have built-in safeguards to ensure the privacy and confidentiality of that information. However, please note that Hollard cannot guarantee the security of any personal information that you disclose online. When you use the on- line services provided by us, you will be given a username and password. You must always keep this information secret and ensure that it is not disclosed to anyone.
Whenever you use this website, complete a quotation or application form or contact us electronically, we will process and collect your personal information.
Hollard engages third parties that help it deliver its banner advertisements and other online communications. The third parties may collect and use information about Hollard customers that is limited to web browser behaviour to help us understand the offers, promotions, and types of advertising that are most appealing to its customers. The information they collect is aggregated and cannot be linked to a person or any specific information about that person. If you do not wish for your personal information to be used in this way, please notify us.
– Third party vendors, including Google and DoubleClick, show Hollard’s ads on sites on the internet.
We at Hollard will use your personal information only as appropriate in the normal course of business. The following are reasons why we would collect your personal information:
Hollard does not permit the selling or providing of personal information to third parties for independent use. At Hollard, we may, however, share your personal information with our partners, if that information is required to provide you with the product or services requested by you. Our business partners will adhere to using your personal information as directed by Hollard.
We will disclose your personal information when required to do so
We may also contact you about our products which we believe may be of interest to you. If at any stage after you have given us your consent, you change your mind and no longer wish us to contact you about our Hollard products, we will respect your decision. You will always be given the opportunity to instruct us to remove your contact details from our mailing list.
You have the right to access your own personal information that Hollard keeps about you by following the procedures described in the Hollard Promotion to Access to Information Act Manual available on the Hollard website.
When you do visit our website, and in the process, provide us with your personal information you will be agreeing to the provisions set out above.
Hollard Website Disclaimer
The terms Hollard or “us” or “we” refers to the owner of the website, whose registered office is 22 Oxford Road. Parktown, Johannesburg, 2001. Our company registration number is 1993/001405/06. The term “you” refers to the user or viewer of our website.
The use of the Hollard website and the related products and/ or services shall be governed by and construed in accordance with the laws of the Republic of South Africa. Should you apply for any products or services on this website, you consent and submit to the jurisdiction of the courts of the Republic of South Africa in regards to all proceedings, actions, applications instituted by either party against the other and in any way arising from any of the stated terms and conditions.
The information contained on this website is to provide you with information about Hollard, our products and services. It is subject to change without notice. The information provided on this website should not be treated as investment or professional advice. We do not provide any warranty or guarantee, expressed or implied, as to the accuracy, availability, completeness and suitability of the information and products found or offered on this website for any particular purpose. You acknowledge that such information and products may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law.
While we have taken care to ensure that the content of this website is accurate and up to date, this website and the services accessible on this website are provided “as is” Your use of any information, products or services on this website is entirely at your own risk, for which we shall not be liable. It shall be your own responsibility to ensure that any products, services or information available through this website meet your specific requirements.
Hollard reserve the right in our sole discretion to amend this website, the products, the information described on this website and the terms and conditions from time to time and you agree that you will review the terms whenever you visit our website for any such amendments.
This website contains material which is owned by or licensed to us. This material includes, but is not limited to, the design, layout, look, logos, and graphics. You are authorized to view and download, print and make copies of such printouts provided that you use the material for personal and non – commercial purposes only. You may copy the content to individual third parties for their personal use, but only if you acknowledge this website as the source of the information and /or materials. You may not without Hollard’s expressed written consent distribute or commercially exploit the content.
Hollard makes no warranty as to the operation, availability or functionality of this website and we further make no warranty that the information and products available on this website are free of viruses, destructive materials or any other data which may corrupt or compromise the operation or content of your computer system, computer network, hardware or software. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website. Every effort is made to keep this website up and running smoothly. However, Hollard takes no responsibility for, and will not be liable for the website being temporarily unavailable due to technical issues beyond our control.
From time to time this website may also include links to other websites. These links are provided for your convenience to provide further information. They do not signify that we endorse the website(s). We have no responsibility for the content of the linked website(s).
Unauthorised use of this website may give rise to a claim for damages and/or criminal offence.
INFORMATION MANUAL FOR HOLLARD IN TERMS OF
THE PROMOTION OF ACCESS TO INFORMATION ACT
1. PROCEDURE FOR OBTAINING ACCESS TO INFORMATION
Any person who wishes to request any information from Hollard in order to protect or exercise a right may contact the Information Officer at the following contact details:
Postal address Physical address
The Information Officer 22 Oxford Road
Hollard and Hollard Life Parktown
c/o Compliance Department Tel: (011) 351 5000
P.O. Box 87419 Fax: (011) 351 8035
2041 website: www.hollard.co.za
Prescribed Access Form
A request for access to a record of Hollard must be made in the prescribed form to Hollard at the address, fax, or email address provided above. See Annexure A for the prescribed form.
2. THE SECTION 10 GUIDE ON HOW TO USE THE ACT
The Guide was compiled by the South African Human Rights Commission specifically to assist people to access records and exercise their right to information. The Guide is available in all South African official languages free of charge and any person may request a copy of the guide.
Please direct queries to:
The South African Human Rights Commission
2nd Floor Braampark Forum 3
33 Hoofd Street, Braampark Office Park
Telephone: +27 11 877 3627
Fax: +2711 403 0668
Contact: Chantelle Kisoon
3. TYPES OF RECORDS HELD BY HOLLARD
Requests for access to documents held by Hollard will be in accordance with the Act. The following records are available to the requester from the Hollard office:
Human Resources Records
These include but are not limited to the following: Any personal records provided to Hollard by their personnel; any records a third party has provided to Hollard about any of their personnel; conditions of employment and other personnel related contractual and quasi legal records; internal evaluation records; and other internal records and correspondence.
Customer related records
A customer includes any natural or juristic entity who receives services from Hollard.
Customer related information includes but is not limited to the following:
Any records a customer has provided to a third party acting for or on behalf of Hollard; any records a third party has provided to Hollard; and records generated by or within Hollard pertaining to the customer, including transactional records.
Financial, IT and Operational records
This includes, but is not limited to, the following: Financial records; operational records; databases; information technology; marketing records; internal correspondence; product records; statutory records; internal policies and procedures; treasury related records; securities and equities; and records held by officials of Hollard.
Hollard may possess records pertaining to other parties, including without limitation, contractors, suppliers, subsidiary/holding companies, joint venture companies, service providers. Alternatively, such other parties may possess records which can be said to belong to Hollard. The following records fall under this category: Personnel, customer or Hollard records, which are held by another party as opposed to being held by Hollard; and records held by Hollard pertaining to other parties, including without limitation financial records, correspondence, contractual records, records provided by the other party, and records third parties have provided about the contractors/suppliers.
Records available in terms of other legislation
The requester may also request information which is available in terms of legislation, such as the following:
Basic Conditions of Employment Act, Companies Act, Compensation for Occupational Injuries & Diseases Act, Employment Equity Act, National Credit Act, Pension Funds Act, Financial Services Board Act, Income Tax Act, Labour Relations Act, Unemployment Insurance Act, Long Term Insurance Act, Occupational Health And Safety Act, Promotion of Equality and Prevention of Unfair Discrimination Act, Electronic Communications and Transactions Act, Short Term Insurance Act, Skills Development Act, Skills Development Levies Act, South African Qualifications Authority Act, VAT Act, Financial Intelligence Centre Act, Financial Advisory and Intermediary Services Act, Protection of Constitutional Democracy Against Terrorist and related Activities Act.
4. THE REQUEST PROCEDURE
The requester must use the prescribed form to make the request for access to a record to the above Hollard address, fax number or email address for the attention of the Information officer.
he Information officer will notify the requester of the prescribed fee (if any) payable before further processing the request.
A requester seeking access to a record containing their own personal information will not be charged a request fee.
The fee that the requester must pay to Hollard is R50. The requester may lodge an application to court against the tender or payment of the fee.
If the request is granted, the requester will be accordingly notified and a further fee must be paid. This would be for the search, reproduction, preparation and time that exceed the prescribed hours to search and prepare the disclosure.
5. AVAILABILITY OF THE MANUAL
The manual is also available for inspection at Hollard’s office, free of charge, on the Hollard website and copies are available at the South African Human Rights Commission.
Standardised Critical Illness Definitions
ASISA DREAD DISEASE DISCLOSURE GRIDS
Hollard is a member of ASISA (the Association for Savings & Investment South Africa) and in terms of this membership, if Hollard declines a Dread Disease claim for one of the 4 main Dread Diseases (Heart Attack, Stroke, Cancer and Coronary Artery Bypass Graft), Hollard can be requested to assess the claiming terms of the ASISA standardised definitions.
For the 4 main Dread Diseases events, ASISA has standardised Dread Disease definitions according to severity levels. Hollard agrees to pay the percentage of the Dread Disease benefit sum assured that is specified in the grids below for the particular Dread Disease and severity level described.
Where a Serious Illness benefit is applicable for these products, Hollard agrees to pay the following percentage of the Serious Illness sum insured for the following Dread Diseases and severity levels:
For credit life products where a dread disease benefit is applicable, Hollard agrees to pay the following percentage of the Outstanding Liability for the following Dread Diseases and severity levels:
Altrisk Severity Based Critical Illness Cover
For Altrisk products where a Severity Based Critical Illness benefit is applicable, Altrisk agrees to pay the following percentage of the Critical Illness sum insured for the following Dread Diseases and severity levels:
Altrisk Max Based Critical Illness Cover
For Altrisk products where a Max Based Critical Illness benefit is applicable, Altrisk agrees to pay the following percentage of the Critical Illness sum insured for the following Dread Diseases and severity levels:
Hollard Life’s Principles and Practices of Financial Management (PPFM)
The Crusader portfolio of with-profits business was purchased by Hollard in 1997 from Crusader Life. At that time Crusader Life was under judicial management. This is the only with-profits portfolio underwritten by Hollard and Hollard does not intend to transact this type of business in the future.
This document describes Hollard Life Assurance Company’s (Hollard’s) approach to using discretion in relation to the policyholders of the Crusader with-profits portfolio (“with-profits portfolio”). The Board of Directors (“The Board”) is responsible for the principles and practices of using discretion. Principles are defined as enduring statements of the overarching standards that Hollard adopts in managing the with profits portfolio. The principles are not intended to be changed, although The Board may change them by giving policyholders and the Financial Services Board (“FSB”) three months prior notice.
Practices describe Hollard’s specific approach to managing the with-profits portfolio and how we would respond to changes in the business and economic environment in the short-term. They are therefore our current approach of calculating policy values, allocating bonuses and using discretion where necessary to the with-profits portfolio. Practices may be changed without prior notice to policyholders, although notice will be given. Hollard has established an independent committee, the Actuarial Committee, which will ensure compliance with the PPFM.
2. The concept of surplus
There are two main reasons why policyholders may reasonably expect surplus allocations to their with-profits policies. The first reason is that the premium rates of the with-profits policies include bonus loadings that were incorporated into the pricing before inception of the policies. The second reason is that the actual experience will be different from the anticipated experience included in the other aspects of the pricing as time passes by.
Hollard’s aim, when determining the amounts payable to with-profits policyholders, is to ensure that policyholders are paid at least a fair return.
That is, a return which reflects the smoothed experience of the assets backing their policy including the expense, mortality and taxation experience of the long-term business fund, over the term of their policy. Amounts payable are generally subject to certain contractually guaranteed benefits and also have regard to the reasonable expectations of policyholder.
The with-profits assets are held within Hollard’s long-term business fund. The long-term business fund supports the liabilities of Hollard’s non-profit business as well as those related to its with-profits business. Hollard’s intention is to meet our aim of paying policyholders a fair return using only the assets of the long-term business fund, subject to the supporting guaranteed benefit.
Hollard determines the surplus amounts through experience investigations of the with-profits portfolio. Typically, surpluses will be allocated by reference to a policy’s asset share. Asset shares are calculated by accumulating actual premiums received less deductions at the achieved rate of investment return. Deductions may include administration expenses, risk charges, cost of guarantees, taxation and cost of capital to support the business.
3. How much of the surplus is available for bonuses?
Hollard’s aim is to return on average 100% of asset share to policyholders over a rolling three-year period. In order to do so, Hollard will consider the following:
3.1 Business risk
3.2 Charges and expenses
3.3 Cost of guarantees
3.4 Inherited estate
Each one of the above factors is discussed below.
3.1 Business Risk
Principle and Practice
With-profits policyholders do not benefit from profits arising from non-profits policies, nor are they liable to losses occurring from these sources.
3.2 Charges and Expenses
The charges applied to with-profits policies will be the charges deemed by The Board to be fair and appropriate. The Board will consider the actual cost of administration of the with-profits portfolio, charges included within the premium rates, the charges deemed appropriate for similar contracts and the level of charges detailed in product literature. The charges applied to with-profits policies may be changed if The Board, having had regard to the advice of the Chief Actuary, considers a change appropriate.
The factor most likely to trigger a change to the charges applied to with-profits policies would be a sustained level of actual expenses different to those previously deemed appropriate for the purpose of calculating asset shares.
Quarterly expense investigations are conducted to monitor the actual cost of administration including contribution to management expenses. The investigations are presented to the Actuarial Committee for review. For asset share calculations, the expenses are determined annually. Actual commission payments are used to reduce the asset share of policies.
3.3 Cost of Guarantees
Hollard does not currently charge the with-profits policyholders for any guarantees, but reserves the right to charge, prospectively, for the cost of these guarantees on the advice of the Chief Actuary. Any charge would be an overall reduction in the annual returns credited in the calculation of the asset share. Affected policyholders would be notified of the introduction of any charge for guarantees as a change in the practice of the PPFM.
Hollard does not currently charge the with-profits policies for any guarantees.
3.4 Inherited Estate
Principle and Practice
This with-profits portfolio was under judicial management prior to Hollard taking it over from Crusader Life in 1997. A special vesting bonus was declared by the judicial managers to the with-profits policyholders as a minimum final bonus. Hollard did not receive the inherited estate but received the assets equal to the with-profits policyholder liabilities. Therefore, the surplus build-up used for bonus declaration is calculated from the date Hollard took over the with-profits portfolio. The with-profits policyholder liabilities have been and are supported by Hollard shareholder capital to fulfil the regulatory requirement of holding sufficient solvency capital and working capital. The Board determines in consultation with the Chief Actuary the size of the shareholder capital to efficiently manage the with-profits portfolio.
4. How are the amounts payable determined?
When determining the amounts payable Hollard will aim to meet the reasonable benefit expectations of all policyholders, treating different classes and generations of policyholders fairly.
One aspect of fairness is the need to ensure that the interests of remaining policyholders are protected against the impact of policyholders voluntarily exiting the fund. Voluntary exits are those arising where policyholders do not complete the full terms and conditions of their policies. This might be, for example, by ceasing to pay premiums, by altering the policy or by surrendering benefits.
Benefit pay-outs are smoothed in order to ensure that over the longer term the amount paid on maturity and death claims is on average equal to the asset share subject to a minimum of the guaranteed benefit. Maturity pay-outs and death claims will be calculated by adding a final bonus, which may be zero or positive, to guaranteed benefits.
The method of determining pay-outs may be changed in the future but in the event of any such change a formal process will be followed requiring the decision of The Board in consultation with the Chief Actuary.
Some approximations in calculating pay-outs are made, including adoption of a common bonus series for endowment and whole life policies in some policy classes and for policies of different sizes. For classes of policy where asset shares are not or cannot be calculated the pay-out may be determined by methods which provide an approximation to asset share.
Where practical, asset share calculations for specimen policies are used as a guide to determine bonus rates and the amounts payable to with-profits policyholders. Hollard aims to pay policyholders on average 100% of asset shares on maturity when determining final bonus payments. The amounts payable on maturity in any year, or to any particular policyholder may be more or less than 100%, due to the effects of smoothing, guarantees, and grouping of policies. The approach for non-guaranteed surrender values is to target an average pay-out for each group of policies of 100% of asset shares in any three-year period on surrenders, subject to policy conditions.
Where available, the directly calculated asset share for specimen policies will be used as a basis for calculating the amounts payable on surrender. Alternatively, a formula approach for surrender values may be used in order to achieve the asset share pay-out target on average. Individual policies may receive more or less than the average pay-out percentage of the group. The bases are reviewed on a quarterly basis or more frequently, if there is a significant change in investment conditions, and may be adjusted specifically to reflect movements in asset values.
The asset shares of this with-profits portfolio are calculated from the date Hollard took over the with-profit portfolio from the judicial managers of Crusader Life rather than from inception. Asset shares are in general, the accumulation of:
Assets equal to the policyholder liabilities when Hollard took this portfolio over
plus premiums paid plus investment returns
less the costs of administering the business
less the cost of death or other risk benefits
less a taxation charge
less transfer to shareholders – up to 10% of investment return
4.2 Setting Regular Bonus Rates
Regular bonus rates are set with the aim of providing a progressive build-up of guaranteed benefits over the lifetime of the contract with an overall aim of retaining sufficient surplus to provide an appropriate margin for final bonus.
Regular bonus rates may be changed prospectively to reflect circumstances including past investment performance, changes in expected long-term investment returns, and any guarantees in the contracts to which they apply.
Regular bonus rates will be smoothed, to limit the effect of changes in these rates from year to year.
Regular bonus declarations take into account the rates which Hollard expects to be able to maintain over the terms of existing policies based on best estimates. This is achieved by projecting current asset shares for specimen policies each year for a range of future investment returns on the with-profits assets and choosing a target regular bonus rate which aims for an adequate margin for final bonus. Suitable allowance will be made to finance final bonuses, and to reduce the risk of asset shares falling below initial guaranteed benefits plus previously declared bonuses.
Part of the surplus is allocated to regular bonuses. At any time, Hollard may pay more or less than the asset share depending upon actual experience.
In normal conditions, regular bonus rates will be reviewed once a year.
Although changes are smoothed, there is no maximum amount by which prospective regular bonus rates would alter.
4.3 Setting Final Bonus Rates
Final bonus rates are set with the aim of distributing the balance of the distributable surplus earned over the lifetime of the policy, to the extent that such surpluses have not previously been distributed by way of regular or other bonus additions. Final bonus rates are also smoothed to a certain extent.
Final bonus rates are set to achieve the overall aim of returning to maturing with-profits policyholders as a group on average 100% of asset shares in the long term, given the regular bonus rates. They are set so as to achieve the smoothing objectives described in section 4.4.
Final bonus rates are influenced by the total return on investments and so are reviewed in the light of prevailing financial conditions. In normal conditions, final bonus rates will be reviewed at least once a year. However, we may change final bonus at any time during the year.
Final bonuses, where applicable, are payable on all claims arising on death, maturity, retirement and surrender under the terms of the contract for with profits policies. The final bonus rate could be zero.
In order to provide an element of stability in the returns to policyholders at maturity, smoothing is applied by spreading profits and losses from one year to the next. It is intended that the long-term cost of smoothing is broadly neutral across generations of policyholders. No smoothing is applied to surrender values.
The Board has not set a predetermined period over which smoothing is expected to be neutral. The current practice is that the claim value should be within 20% of the asset share for maturities.
The current practice is to apply the same approach to smoothing for all policy types on claims of all sizes and terms, irrespective of the date on which they joined the with-profits portfolio.
In certain circumstances, it may not be possible to remain within the parameters set by the current smoothing policy. In such circumstances, The Board will set bonus rates with the additional aim of being within the smoothing parameters within three years.
The aim of the investment strategy is to maximize the long-term return on investments for with-profits policyholders whilst recognising the need for the fund to meet its contractual obligations and commitments to policy holders.
The Board, upon receiving advice from the Chief Actuary, may split the with profits’ liabilities of the fund into separate components and the investment strategy for each such component may be determined separately. The assets backing the with-profits funds are held within the long-term business fund.
The Board is responsible for Hollard’s investment policy. The investment committee has been appointed by The Board to review Hollard’s investment strategy and asset allocation on a regular basis, to manage relationships with external fund managers and review performance against benchmarks.
Other functions of the investment committee include:
The investment strategy is reviewed from time to time by the investment committee which meets monthly.
5.1 Asset Allocation
The long-term business fund invests in a wide range of assets. In determining the mix of assets between different asset classes, the investment strategy will take into account the nature of the with-profits policyholder liabilities, Hollard’s ability to meet its Capital Adequacy Requirements in all reasonably foreseeable circumstances, the long term expected return available from each asset category and the observed and expected market volatility of each asset class.
In considering the range of assets in which to invest, derivatives and other financial instruments may be used within the limits determined from time to time by The Board. In order to reduce the risk of loss resulting from the failure of a third party The Board sets limits for exposure to various counterparties taking into account their credit rating.
Hollard aims to maintain a closely matched position for the with-profits portfolio with regards to the nature, term and size of the policyholders’ liabilities. Returns are derived from the performance of the Hollard Stable Fund. The fund invests in equities, bonds, and cash. The asset allocation at 31 March 2007 was:
Note: The equity content is low comparing to a fund that is open to new business, because this with-profits portfolio has been closed for at least ten years. In addition, this portfolio carries significant guarantees which are best managed by a prudent investment approach.
The return of each asset class is then used to determine the weighted average return that is used for asset share calculations.
Appropriate credit quality of the investments of the with-profit portfolio is maintained by specifying the credit ratings in investment management agreements.
The with-profits portfolio invests mainly in listed investments in order to maintain a sufficient level of liquidity. Investment management agreements specify limits on the level of investment in securities that are not listed. Cash and deposit-type investments are also used to back current liabilities to provide a greater level of liquidity within the with-profits portfolio than would otherwise be achieved by investing solely in longer-term assets. This also ensures a sufficient level of liquidity to pay policyholder benefits as they fall due.
5.2 Investment in Related Parties
There are no restrictions other than those specified by the Financial Services Board on the long-term business fund holding assets invested in related parties.
There are currently no assets of the with-profits fund invested in related parties.
No investments will be made in related parties unless a proposal has been made and approved by The Board or the committee responsible for investment strategy.
5.3 Investment in Negative Rand Reserves
Investments to fund non-profit policies or with-profit policies with negative asset shares are allowed. The Board aims to pay a notionally derived return based on actual returns achieved in various asset classes on such investments.
There are currently no assets invested in negative rand reserves.
No investments will be made in negative rand reserves unless a proposal has been made and approved by The Board or the committee responsible for investment strategy.
5.4 Investment in illiquid, unlisted and strategic assets
There are no restrictions other than those specified by the Financial Services Board on the long-term business fund holding assets that are not listed provided that the fund also holds sufficient liquid assets to meet its requirements. Any such holdings are reviewed on a regular basis to ensure compliance to such restrictions.
There are currently no assets of the with-profits fund invested in these types of assets. No investments will be made in these assets unless a proposal has been made and approved by The Board or the committee responsible for investment strategy.
Principle and Practice
Hollard does not follow any hedging strategies for the with-profits portfolio.
5.6 Investment in Treasury Shares
Principle and Practice
Investment in Treasury shares is not allowed for the with-profits business.
5.7 Investment in Collective Investment Schemes
There are no restrictions other than those specified by the Financial Services
Board on the long-term business fund holding assets invested in Collective Investment Schemes.
Currently, the with-profits assets are not invested in any Collective Investment Schemes.
No investments will be made in a new Collective Investment Scheme unless a proposal has been made and approved by The Board or the committee responsible for investment strategy.
6. New Business
This with-profits portfolio is closed for new business and will continue to be closed in the future.
7. Conflict of Interest
In some circumstances conflicts of interests may arise between with-profits policyholders and shareholders. An example might be the allocation of administration expenses:
An allocation that is too high may unduly advantage the shareholders, an allocation that is too low may unduly advantage with-profit policyholders.
Hollard has implemented the following to deal with possible conflicts of interest:
Hollard Group FAIS Conflict of Interest (COI) Management Policy
Applicable to the Hollard Insurance Company Ltd – FSP 17698, the Hollard Life Assurance Company Ltd – FSP 17697, and the Hollard Investment Managers (Pty) Ltd – FSP 32521
1. Statutory definitions of COI
“Conflict of interest” means any situation in which a provider or a representative has an actual or potential interest that may, in rendering a financial service to a client, –
(a) influence the objective performance of his, her or its obligations to that client; or
(b) prevent a provider or representative from rendering an unbiased and fair financial service to that client, or from acting in the best interests of that client,
Including, but not limited to –
(i) a financial interest;
(ii) an ownership interest;
(iii) any relationship with a third party;
“financial interest” means any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration, other than –
(a) an ownership interest;
(b) training, that is not exclusively available to a selected group of providers or representatives, on
(i) products and legal matters relating to those products;
(ii) general financial and industry information;
(iii) specialised technological systems of a third party necessary for the rendering of a financial service; but excluding travel and accommodation associated with that training;
“immaterial financial interest” means any financial interest with a determinable monetary value, the aggregate of which does not exceed R 1 000 in any calendar year from the same third party;
“third party” means a product supplier, another provider, an associate of a product supplier or a provider, a distribution channel and any other person who in terms of an agreement provides a financial interest to a provider or its representatives.
2. Policy statement
The Hollard Insurance Company Ltd, Hollard Life Assurance Company Ltd, and Hollard Investment
Managers (Pty) Ltd (collectively “Hollard”) are committed to complying with the regulatory requirements governing Conflict of Interest under the FAIS General Code of Conduct and ensuring that conflicts of interest are appropriately managed in the best interests of our partners, customers and policyholders.
3. The management of COI
3.1. Mechanisms for the identification of COI
Before we conclude new business arrangements, we shall consider whether the proposed arrangement will present any potential conflict of interest. It will be the responsibility of the Business Unit Head entering into the relationship on behalf of Hollard to ensure that this identification process is carried out and appropriately documented before the relationship is progressed.
Business Unit Heads will be accountable to ensure that the necessary reviews of all existing business arrangements are conducted at least annually to assess the ongoing conflict of interest in the light of changing circumstances, operational processes and procedures that may have been implemented since the commencement of the business.
3.2. Measures for the avoidance and mitigation of identified COI
Whenever any potential conflict of interest is identified, the Business Unit responsible for the relationship will consider whether any practical means exist for avoiding such conflict of interest. Where this is not practical, the Business Unit Head will consult with the Compliance team to devise appropriate and adequate measures to mitigate and manage the identified conflict of interest.
The resulting mitigating and managing measures will be documented and communicated to all staff involved in managing the relationship to ensure that the risk of the identified conflict of interest is appropriately managed by the affected business unit.
3.3. Measures for the disclosure of COI
Wherever potential conflict of interest is identified, the Business Unit Head will ensure that appropriate communication regarding the following aspects is included in the disclosure information and documentation provided to potential customers purchasing products:
3.4. Processes, procedures and internal controls to facilitate compliance
Business Unit Heads will be required to ensure that the policy is implemented in their business units and will on an annual basis warrant to the Compliance Department in writing that they have met their obligations under this policy and describe the steps taken to do so.
Training for all affected staff will be provided by the Compliance Department to ensure that they understand their responsibilities under this policy.
The Compliance team will monitor compliance with this Conflict of Interest Management policy and will perform the necessary reviews in consultation with Executive Management to ensure that appropriate procedures and processes are in place and effective to comply with the policy.
The Compliance team will facilitate a review of this policy annually to ensure that it remains relevant and appropriate to meet the statutory requirements.
4. Financial interests offered to Hollard representatives
Hollard may offer its representatives sales incentives, in addition to their basic salary, based upon a combination of:
The quantity of business introduced, and
The quality of the service rendered to customers (as measured by the Hollard Quality Assurance process).
No sales incentives may be offered to representatives for preferring one product over another that may be offered to a customer.
Hollard’s representatives are not authorised to sell, and may not accept remuneration for selling, the products of other product suppliers, except to the extent that Hollard has entered into agreements with such product suppliers to sell the products of the product suppliers.
5. Financial interests offered by Hollard to Third Parties
Hollard may only offer the following financial interests to third parties:
6. List of Hollard Associates
The following entities are associates of Hollard Investment Managers:
7. Third parties in which Hollard holds an ownership interest
As defined in the FAIS General Code of Conduct
Hollard Insurance holds ownership interests in the third parties as detailed below:
Hollard Life Assurance holds ownership interests in the third parties as detailed below:
Hollard Investment Managers does not hold ownership interests in any third parties.
8. Third parties who hold an ownership interest in Hollard
There are no third parties who hold an ownership interest in Hollard Life Assurance.
The following third parties hold an ownership interest in Hollard Insurance:
There are no third parties who hold an ownership interest in Hollard Investment Managers.
9.Consequence of non-compliance with this policy
Failure to comply with the provisions of this policy by any staff member or FAIS representative shall constitute serious misconduct and will result in disciplinary action being initiated against such staff member or representative.
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SAIA Code of Conduct 2013
ASISA Code of Conduct
FAIS Code of Conduct