Mutual & Federal: Strides ahead in improved customer service

Mutual & Federal, a member of the Old Mutual Group, is committed to connectivity and to the consequent benefits of greater effectiveness, efficiency and sustainability in the short-term insurance space.

Customer benefits

“Greater connectivity between insurers and brokers means more efficient processes that will inevitably result in an improved service and lower costs delivered to our customers,” says Karen Miller, Chief Underwriting Officer at Mutual & Federal and co-chair of STRIDE’s Business sub-committee.

STRIDE is the Short Term Insurance Data Exchange. The initiative, led by insurers (South African Insurance Association) and brokers (Financial Intermediaries Association), seeks to streamline insurance processes by connecting insurers and brokers.

When insurers are able to access data on third party systems, they will have a real-time view of their full exposure in the market place, enabling them to be more accurate in assessing the risk they face in providing insurance. “Since reliable data leads to accurate pricing, this will undoubtedly lead to fair pricing for customers, highlighting the company’s commitment to rewarding its customers who are more risk conscious”, says Miller.

In time, straight through processing will be a reality of an interconnected insurance environment and will drive down cost of delivery as duplication of processes and data is eradicated.

Brokers and clients will benefit from the consequent efficiencies and lower cost of delivery, as product pricing becomes more accurate. Insurers will become more efficient and sustainable as they gain full understanding of the risks they are underwriting on external platforms “, states Miller.

Good corporate governance and sustainability

As South Africa increasingly embraces a greater consciousness of risk versus sustainability in business, legislation is moving in a similar direction. “Locally, regulators are driving the requirement for insurers to access policy level data on non insurer platforms through the Insurance Law Amendment Act”.

Regulators globally are driving a risk based capital approach, and this approach benefits from access to policy level data and contributes to greater sustainability for insurers who need to understand the risks they cover.

“Mutual & Federal already embraces sustainability principles and is committed to managing underwriting risk; so this makes a lot of sense for us.”

“Connectivity will enable brokers to make better deals and customers to benefit from improved service and fair pricing, while enabling insurers to better manage their risk,” concludes Miller.

Mutual & Federal is one of the leading short-term insurers in Southern Africa.