FAnews chatted to Dalene Allen, co-founder and Underwriting Director at Altrisk about the company’s track record of innovation and the response from the broker community.
Launched just 12 years ago, Altrisk has certainly built up a reputation for innovation and an alternative approach to risk. It is an approach that is yielding results, considering that the company currently covers almost 90 000 lives, a growth rate that is definitely ahead of the market standard. “Even as the youngest player in the market, we already represent more than 10% of the intermediated risk market share, which means we must be making serious inroads in our competitor’s market share!” says Dalene Allen, co-founder and Underwriting Director at Altrisk.
“Our entire approach and philosophy is about adopting a holistic approach to underwriting, which has resulted in Altrisk being one of the most active insurers in terms of product development and industry firsts, including providing affordable cover for people who traditionally could not get cover anywhere else in the market. One of our greatest achievements is that we were first to offer cover for HIV positive clients.”
From the brokers’ perspective
Allen says that right from the start, the acceptance and support Altrisk received from independent brokers has been incredible. “We came to market with no direct broker experience and yet the reception from the broker community was amazing! Realising how hungry financial advisors were to have someone actually listen to their needs and challenges, and to have a direct line to the top, confirmed we were on the right track. It is this support from independent brokers that catapulted our growth.”
Today, 3 500 brokers write consistent and regular business with Altrisk, and the figure grows every month. “I attribute this growth to the fact that we have led the market with many firsts. Brokers are looking for innovation and thought leadership, and they find this at Altrisk.
“In return, we ensure our brokers can count on us to put our claims philosophy - ‘we are in business to pay claims’ – into practice every day. Since the very first claim – lodged literally one year after we launched in 1999 - we go out of our way to make sure claims are paid. The Altrisk value of 'doing the right thing' is core to the way we live our lives and conduct our business.”
Alternative broker solutions
Beyond the innovative risk solutions Altrisk offers to their brokers’ clients, the company’s alternative approach to commission structures is also getting serious attention from the broker community.
“Brokers want choices in terms of how they run their businesses, and they want a means to build up a legacy business through annuity income that has legs long after they decide to sell or retire,” explains Allen. “Maintaining the independence and integrity of the financial advisor is paramount. We need independent financial advisors to provide the right, ethical advice to clients, at the right time for their particular circumstances. We cannot afford to be in a situation where consumers are fobbed off onto mass, sausage-machine type broking, simply because that’s all the broker can offer. The single biggest threat to our industry is the loss of independent brokers and the resultant risks for consumers.”
“There is a drive in the industry to do things faster and more efficiently – but we have to guard against losing focus of the basic premise of insurance and the importance of what we do for our clients – providing security and peace of mind for the unplanned and unknown,” concludes Allen.
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