Background on Vision 2020
In 2015, Santam set an ambitious target – Vision 2020: to be the leading general insurer in South Africa with a presence in selected emerging markets. We identified five strategic focus areas to facilitate value creation and achieve our target.
2018 group strategy process
The Santam group is nearing the end of its five-year journey to Vision 2020. In 2018, we initiated processes, which included a Vision 2020 strategy progress review and the start of the new planning horizon, to consider what the group should address to become “future fit”.
The processes aim to:
- encourage participative planning within the Santam group leadership team;
- identify and address the key issues that impact Santam’s medium to long-term strategic agenda, including relevant ESG and other corporate sustainability issues;
- strengthen the alignment of strategic plans and resultant initiatives across the Santam group, as well as with other group companies across the wider Sanlam Group, including SEM; and
- promote an understanding of the required strategic and business changes, resource allocation and cultural behavioural elements needed for effective implementation across the group.
Real-life story: UNEP PSI and Santam: stimulating conversations in the African insurance industry
An uninsurable world is a cost that society cannot afford. Understanding rapidly changing environmental, social and governance (ESG) trends – including climate change – is vital for an industry whose core business is to manage risk.
Material matters - 10 themes shaping the future of general insurance
The Santam group conducted a thorough process of environmental scanning which included the identification of material matters that are relevant to our company and stakeholders, now and into the future. These matters were tested against past strategic insights and debated by the executive committee and the board as part of the group’s annual strategy review process. Consequently, we identified 10 overarching themes that are shaping the future of insurance. We applied these themes to the Vision 2020 strategy and made appropriate adjustments. These 10 themes will inform the new group planning horizon.
Our strategic risks
One of the main functions of our strategy review process is responding to our strategic risks.
In determining Santam’s strategic risks, the group and business units each have detailed risk appetite policies with criteria that consider financial and non-financial risk. This indicates how much risk Santam is willing to take on in the pursuit of its strategic and operational objectives. It also quantifies the amount of capital we are willing to put at risk to create value.
Vision 2020: sustainability performance
Santam acknowledges that business operates in conditions of environmental and social thresholds. Since our group operates within this nested ESG system, we take ESG issues and sustainability seriously. This is illustrated through the integration of material matters into our strategy process, including the review and fine-tuning of our Vision 2020 strategy; and our forward-looking review process towards the 2025 planning horizon, which will conclude during 2019.