In the struggle for survival the fittest survive
Dealing with change is never an easy thing. As South Africans, we are well versed in living within certain parameters only to find that change is inevitable and that adaptability is needed.
Charles Darwin once famously said: In the struggle for survival, the fittest win at the expense of their rivals because they succeed in adapting themselves best to their environment. To achieve this, strong vision based leadership is needed.
The financial services industry has seen some change in leadership of late. Following this trend, Camargue has appointed Gerhard de Bruin as Managing Director. FAnews caught up with De Bruin to find out his opinion of the industry and the future of the company.
The winds of change
Of all the changes influencing the financial services industry, technology seems to be the most pertinent.
“The emergence of InsurTech – small nimble technology companies trying to become the Uber of the insurance market – is an emerging industry tipping point. Trov, with its mobile app for immediate insurance and Peer to Peer (P2P) insurer Lemonade, are category leaders when it comes to technology enabling insurance solutions,” said De Bruin.
He adds that there is also an increasing demand for speed, simplicity and transparency in transactions. Innovation in the design and delivery of insurance, using technology and digital engagement, will enable the industry to meet the customer expectations of tomorrow.
“P2P insurance is expected to gain more traction in the future and new practitioners of P2P insurance are likely to emerge. The surge in InsurTech investments is a clear indication of the support of this model and the digital revolution will drive growth in the future. We can definitely expect to see an increase in investments in InsurTech businesses going forward. Cyber insurance also presents real opportunities and ongoing challenges going forward,” says De Bruin.
Polishing the crystal ball
This revolution will have a pronounced effect on the industry. With that in mind, what will the future hold for Underwriting Managing Agencies (UMAs) and specialist insurers?
According to De Bruin, UMAs will likely have to adapt to fundamental changes over the next five years; transformation that threatens to upend current business models and standard operating procedures. He adds that capital is no longer a core competence and established insurers will in all likelihood team up with agile new InsurTech companies.
“Looking at a ten year view, we believe due to developments like driverless cars, insurance will shift from asset-based insurance to liability-based insurance. The dawn of technology like drones, biotech, Blockchain, robo-advisors, machine learning, and artificial intelligence has and will continue to change the insurance landscape indefinitely. It is not difficult to imagine robots (and drones) visiting accident sites and performing damage assessments, robo-advisors providing counsel on investment decisions to customers, rules engines making more and more underwriting decisions, and the automation of other insurance activities,” says De Bruin.
The key to the equation
In the face of all of this change, the broker still offers an invaluable service to clients.
“Brokers will continue to play an important role in our business and the industry, particularly in the medium commercial space, as well as the corporate arena. We are invested in our broker relationships and will continue to develop and support the essential function they serve,” says De Bruin.
Brokers should not expect anything different from Camargue. “We believe Camargue has the appropriate operating model, underwriting approach and culture to continue to operate efficiently in this challenging environment. This is underpinned by the support of our new global shareholder Brit Insurance. So it’s not necessary for us to reinvent the wheel; we have in place fundamentals for good operations and a solid foundation on which to build. We will of course continue to innovate and deliver risk solutions to our customers and our focus will be concentrated on clients and putting their needs first,” concludes De Bruin.
Editor’s Thoughts:
The most important aspect about adapting to this change is not to fall into the trap of analysis paralysis. When speaking to industry leaders, the common theme is picking an adaptation model and sticking to it. What is your recipe for success? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
