Complying with PPRThe Policyholder Protection Rules (PPR) have a huge impact on the way the insurance industry treats its’ customers. One of the areas most affected is communication with policyholders. To complicate matters, as the rules are changing with new legislation, so are the channels used to engage with your customers and potential customers.

How does PPR affect communication?

In line with TCF1 (Treating Customers Fairly), companies need to provide customers with clear information and keep them appropriately informed before, during and after point of sale.

According to Old Mutual, “the PPRs emphasise that every attempt should be made to ensure direct communication with employees and members to facilitate fair treatment. This communication requirement is in addition to the insurer’s obligations to keep the policyholder informed – it does not replace it.”2

A recent ruling by the FAIS is “a stark reminder of the importance of keeping a solid record of advice”.3 Insurers could be at risk of penalties for non-compliance. In this particular case an amount of R355 785 for not disclosing the minimum requirements to comply with an insurance product.

And the new medium for engaging with clients?

“Omni-channel” is the new buzz word that allows clients and customers to choose how they want to engage. It could be via social media, Chat Bots, Email, SMS or a combination of channels.

(Before you use this channels, are you sure you have the correct consent in place as per GDPR requirements? We’ve explored those communication requirements here.)

“There is value in every social network. However, advisers need to be aware that different social media networks attract different audiences. Once this has been established, and credibility has been built up, an adviser can use a social media platform as a launchpad for product and services.”4

What about giving advice via social media?

Assuming you are qualified to give financial advice, a record of advice and the basis on which the advice is given must be provided, in writing, to the client.5

So how do you communicate with customers in an omni-channel environment while still ticking the compliance box of ensuring direct communication with policyholders?

By ensuring that all new agreements, changes in terms and conditions or advice given via any channel is recorded and delivered to the customer. Our Registered Email and Registered SMS services give the sender peace of mind that a record has been delivered to the recipient and stored by a trusted third party.


1 Summary of Treating Customers Fairly

2 The new policyholder protection rules

3 Whose fault is it

4 Fundamentally changing the way we engage with clients

5 Financial Advisory And Intermediary Services Act Sec 9(1) and (2)