More bespoke products from Momentum STI

FA NEWS: What is unique about the three new commercial products and why should brokers place their business with Momentum STI?

Pieter: Momentum STI is always on the lookout for new and innovative ways to present their products to the consumer. Our goal is to be one step ahead of the market by offering benefits that are different as well as complimentary to the impeccable claims service we provide. An example of unique benefits on our new products is that we cover "shoplifting” incidents during business hours. We value our brokers’ opinions highly and receive regular feedback from them as to what their clients expect and need.

FA NEWS: Is an on-site risk assessment standard with Momentum STI commercial cover?

Pieter: The assessment process is automated and based on the specific risk we are quoting. We currently assess a small percentage of quotes and can complete a manual survey in instances where the broker requires it.

FA NEWS: What role should the broker and insurer take in educating the consumer about the risk assessment process?

Pieter: Short term insurance – especially in the commercial space – can be a difficult concept for consumers to grasp. We support the role of the intermediary and believe they play a vital role in ensuring that the consumer is well-informed and up-to-date at all times. The broker distribution model establishes a point of contact for the consumer to understand the cover (insurance jargon) that is on offer in the commercial insurance market.

FA NEWS: What are some of the unique insurance challenges in the three new industries you offer tailor-made cover for?

Pieter: We have focused on the unique needs of each of these industries. Theft of business assets and stock are among the greatest risk these businesses are exposed to and we have therefore included cover against shoplifting. We have waived the condition of visible signs of forced entry and cover shoplifting during business hours for the three industries. A further common exposure is a loss in turnover due to an interruption in the business. In addition to covering the fixed expenses and operating profits, we now cover franchise royalties as a unique benefit. Businesses are cash flow sensitive and to assist a client in managing this, we guarantee our premiums for 12 months and charge a flat excess in the event of a claim to eliminate any nasty surprises.

FA NEWS: How has business grown at Momentum STI since the inception of the unique covers?

Pieter: Commercial insurance has always been the main focus at Momentum STI. The introduction of tailor-made products has resulted in substantial growth in the business. We have also experienced an improvement in success rates due to product offerings that cater for our client’s specific needs.

FA NEWS: Momentum STI has avoided the challenges faced by other insurers in terms of binder agreements with underwriting managers (UMAs)… Can you comment on this?

Pieter: You are correct. The New Binder Regulations do not apply to us because we provide our products directly to our registered intermediaries. Although contentious, the recently introduced binder regulations were necessary to provide greater structure and clarity to this part of the industry.

FA NEWS: Regulation has taken centre stage in the financial services industry in recent years. Which of the regulations has had the most impact on the commercial insurance environment?

Pieter: It is difficult to single out a particular piece of legislation. It seems reasonable that the binder regulations had a significant impact due to the number of UMAs and binder agreements in the commercial space.

FA NEWS: What can brokers expect from Momentum STI in terms of new products?

Pieter: There are many new products under development. We will be launching three more tailor-made products soon, bringing to 10 the number of Commercial Tailor Made products on offer to our intermediaries’ clients.