Brokers and customers remain central to Mutual & Federals core business model

Newly appointed CEO, Raimund Snyders tells the FAnews that the customer needs remains focal and that their needs will be serviced through a number of defined strategies which will help the company grow its credibility in the industry.

 

"I feel very humbled that I have been given the responsibility to lead a company which has such a long history attached to it. This means that I have certain values to uphold, the biggest one is that the customer must always come first,” he said.

 

This was a value which was understood very well by Snyders predecessor, Peter Todd, who realized that the best way to achieve this is to adopt a broker centric model which put a lot of faith in brokers and the vital role that they play in providing the public with the cover they need.

 

There is no doubt that Snyders will continue with this vision and that he will continue to make brokers an important part of the company’s model. "The importance of brokers and the role they play in our model, needs to continue,” says Snyders. "You don’t want a commoditised industry. Customers need to see value in the industry, and brokers play an important role in achieving that. We need to sit down and engage with brokers about the changing dynamics of the industry and how we can adapt to make them understand their value to our company and the role they play in covering the industry.”

While brokers play an important role in Mutual & Federal’s model, the influence of direct insurance on the brokers marketing cannot be ignored. The direct model is definitely putting the broker under significant pressure, and that is a reality when will never get away from.

While Snyders comes from the life insurance industry background, he feels that his adaptation to short-term will not be difficult.

 

"The value of the business lies in the quality of the advice that you give to customers. This is why my adaptation to short-term will hopefully be successful. Both life and short-term insurance are industries which are part of the key components to what makes customers wealthy and they form a vital part of the financial journey which people and customers travel on.”

He adds that both are fields where you are entrusted with deep relationships which you need to foster and nurture in order to keep the company successful.

 

There has been a lot of rumours in the industry that the resignations of Todd and Caroline da Silva may have been a result of sub-standard performance of the company. However, Snyders offers his assurance that the resignations were personal decisions and were not based on the company’s performance in any way, shape or form. "In fact, the company is performing admirably considering the restricted nature of the market. And while I have to sit down and establish my unique strategic vision for the company, it will not be vastly different from what has been done before,” said Snyders. "Our focus remains sustaining profitable business growth through a multi-channel strategy and niche markets. We will continue to strive for cost containment in our business and reduce claims costs through efficient supply chain management practices.”

He also pointed out that the company’s African businesses are performing well. Mutual & Federal’s Namibia, Botswana and Zimbabwean businesses are showing solid growth in sales which places the company perfectly for an expansion into Africa.