RAND MUTUAL ASSURANCE – Changes at the Top for 125-year-old RMA

2020 looks set to be a big year for one of South Africa’s leading financial services businesses, Rand Mutual Assurance (RMA). The company – which was formed in 1894 by three mining houses to administer workmen’s compensation benefits for those injured in the course and scope of their employment – celebrated its 125^th anniversary last year and is ramping up activity as it searches out further growth.

For RMA, all policyholders are shareholders. Over the years, the company has evolved to meet the needs of a changing person and a changing marketplace. Today, the core business for RMA is the receipt, adjudication and administration of workers’ compensation benefits and claims, including the payment of medical costs, once-off disability payments and the ongoing payment of pensions in the case of severe disability and fatalities. It is also invested in other activities and operates subsidiary businesses which handle various other activities on behalf of the group.

Fortunately, after much economic and political uncertainty – which has been harmful for Africa’s financial services industry – the expectation is that the future is bright for the sector. According to PwC, Africa’s insurance market remains largely underdeveloped when compared to global standards. Disruptions resulting from the 2008 global financial crisis have impacted the growth of companies in the industry. And, competitors from other sectors, such as banking and mobile operators, have started to enter the market placing further pressure on quality and pricing. But, global economic conditions have improved over the past three years and, in sub-Saharan Africa, GDP figures are expected to continue to improve (2.6% for 2017, 2.4% for 2018, 3.2% for 2019, 3.6% projected for 2020). “Growth is projected to remain strong in non-resource-intensive countries, averaging about 6%. As a result, 24 countries, home to about 500 million people, will see their per capita income rise faster than the rest of the world,” states the IMF.

Clearly, RMA has picked up on the positive feeling and is actively searching out opportunities for future growth. The first step in the process came in the busy month of December when RMA announced the appointment of a new CEO.

CHANGES AT THE TOP

Following the appointment of Thabo Dloti as RMA Board Chairperson just a few years ago, the company announced in December more changes of senior staff as current CEO, Jay Singh, announced he would retire from the business at the end of June 2020. He will be replaced by Mandla Shezi (now CEO designate). Shezi joins from Hollard where he also held the position of CEO of the international business. Previously, he was Managing Director of Hollard Affinities and Direct for more than a decade and brings an supreme academic background holding a Master of Business Administration (MBA) from the University of Cape Town and a Bachelor of Science Degree from the Massachusetts Institute of Technology (MIT).

“I am pleased to announce that we have appointed Mandla Shezi as RMA’s new Chief Executive Officer. Mandla will take over from Jay Singh, who is retiring from RMA at the end of June 2020. Mandla will be CEO designate from the 1st of February 2020 and fully assume office as CEO on the 1st of July 2020. Both Jay and Mandla will work closely, hand in hand to ensure a smooth transition during this period,” said Thabo Dloti.

RMA was particularly attracted to the problem-solving nature of Shezi – developed through an engineering background. His international exposure is also important, helping to bring further global best practice into the business.

“He is an engineer turned businessman,” said Dloti. “He studied chemical engineering and worked as a process engineer and an economist early on in his career. His passion for business management and decision-making inspired him to move from engineering to business management where he worked as a management consultant at Bain and Company from 2000 to 2002. He moved to SAB as an executive assistant to the CEO where he was responsible for strategic projects across the group and was also manufacturing manager for two of SAB’s plant operations.

“In 2007, he joined Hollard as MD and led different divisions for the group. He has both long-term and short-term insurance experience and has been MD of a division at Hollard that was focused on SA for 12 years and led a division that had Africa and Asia focus with country CEOs reporting to him.”

RMA holds the vision of ‘being the leading insurance provider and administrator of employment injury- and health-related benefits and niche insurance solutions through a world-class integrated IT system’. Shezi will take up the position with the view of improving strategic and managerial leadership while executing strategy.

“His wealth of experience in the Insurance and Financial Services arena will contribute to the growth strategy of our Non-COID (Compensation for Occupational Injuries and Diseases) business and his extensive knowledge of emerging markets into the rest of Africa will drive our new Africa Growth strategy. His vast experience in stakeholder management with multiple strategic partners will be beneficial to driving our growth strategy and in utilising our state-of-the-art IT software,” said Dloti.

Key risks for Shezi to consider when it comes to strategic implementation are the implementation of the National Health Insurance Bill, proposed amendments to COIDA, and political risk. But Dloti remains convinced RMA has got the right man.

“Mandla has excellent business experience and the drive to work with all of us to take RMA to the next level of growth and development. I am personally very pleased that we have been able to attract someone of his calibre, track record and further potential. He is a strong, dynamic and values-driven leader with an impressive track record of delivering consistent high-quality performance,” enthused Dloti.

ON THE MOVE

When Shezi arrives, he will be welcomed to the new RMA head office in Parktown, Johannesburg. Currently, the company is headquartered on Wellington Road, RMA will make the short move across the district to St Andrews Road. The drive behind the move is to bring staff under one roof to improve teamworking and make cost savings.

“This is a great milestone in our growth journey,” the company says. “People are the core of what makes us successful, as part of our efforts to continue enhancing our capabilities to deliver on our strategy, we decided to acquire a building that will house all head office staff into one building. This decision is a move towards increasing collaboration, improving operations and staff relationships.

“We believe that the new office space will offer us an opportunity to work closely together in pursuit of reaching our strategic goals. We are confident that this move will positively affect our staff and improve service delivery to our clients, enabling us to: foster creativity and collaboration across RMA departments, save on costs by joining two RMA offices into one, increase client centricity and service, and create a sense of one RMA.”

All of this is vital when it comes to delivering a truly human service for people that really need it. Following the organisation’s 125-year anniversary, outgoing CEO Singh was keen to reiterate the importance of continuation of quality service delivery to ensure sustainability.  

“Reaching our 125th year milestone, has made me proud of the successes that we have achieved as a group. Through our diversification strategy we have successfully created the foundation for longer-term sustainability so that RMA may continue to offer Caring Compassionate Compensation well into the future,” he said.

“[In 2019] we launched our Straight Through Processing and Single Queue Claims Management systems using innovative automation and artificial intelligence to offer first class claims administration. Our successes in 2019 were also attributed to our staff who were dedicated and committed to delivering Caring, Compassionate, Compensation throughout 2019.”

Now with offices in Johannesburg and regional walk-in branches located in Carletonville, Cape Town, Durban, eMalahleni, Klerksdorp, Pretoria, Rustenburg and Welkom, and satellite offices in Lesotho, Mthatha and Mozambique, RMA is a Level 1 B-BBEE contributor that is furthering the country’s reputation as a financial services leader.

With Africa’s insurance industry accounting for just 1.2% of premiums written globally, there is major room for advancement on the continent – home to more than 17% of the world’s people. South Africa’s industry is well-regulated and has a sound framework which, although the market is competitive, allows for innovation and growth potential.

If RMA can sidestep negativity in the economy through product and geographic diversification, there is no reason why this established South African institution can’t achieve its ambitious growth plans and deliver reliable and sustainable services that have helped make it both popular and powerful.