The howling winds of change

Sujeeth Bishoon, Executive Head at Acuideas

From changing customer behaviour to new regulations, over the next ten years the industry will face more disruptions than most other industries.

FAnews spoke with Sujeeth Bishoon, Executive Head at Acuideas, to find out more about the company’s product offering to negate these disruptions.

Question: How should companies overcome the disruptions that face them in the financial services industry?

With huge advances in technology and the digitisation of the insurance sector, greater emphasis needs to be placed on product development, in order to adapt to the changing risk environment.

There are many factors that guide development, such as societal trends, new legislation, competitors and feedback from customers, however all new products must meet regulatory requirements. One fundamental new development is that clients want the convenience of having one advisory company taking care of all their needs.

Question: What are the innovative and risk-based solutions that you provide to brokers?

We offer brokers access to personal lines and commercial lines products underwritten by multiple blue chip insurers. Acuideas has partnered with risk carriers to also create unique products that address gaps in the insurance market.

We also offer the broker access to geo-analytics, which will provide them with greater insights into their existing and potential new customers. Acuideas offers the broker a superior servicing value proposition. The broker will interact with a dedicated account executive who will service the broker’s needs across multiple insurers on the Acuideas platform.

Question: What role will data play in the future of the financial services industry?

Data runs the insurance sector, so the better a company can gather and analyse data, the better they are positioned to manage risk, understand their clients and then create actionable insights. Through developments in technology, data sources are evolving, this means that insurers must use the multiple, available sources of information to increase their client knowledge. With new entrants to the industry, it’s crucial to thoroughly understand market drivers and remain competitive, by integrating multiple data sources that capture information accurately.

Question: Will the role of research and development in the industry change going forward?

Being innovative is essential, particularly when the industry is highly competitive as it is in South Africa.

Successful investments assist the insurer by retaining and growing their client base. Indwe has invested in Acuideas after recognising a gap in the market. Part of the company’s success is that it breaks the mould by providing both the independent broker and the product provider with new, smart ways of doing business. Higher consumer expectations in terms of insurance service delivery, and the introduction of legislation to professionalise the industry, are key driving forces to the disruption and innovative changes in terms of product development and the convergence of financial services offerings.

Financial services businesses have to adapt to the information age, and utilise customer data insights to create meaningful integrated customer value propositions.

Question: What are the cost implications of this? What will brokers’ return on investment be?

Brokers do not have to sacrifice any of their commission, advice fees or ownership in their business to join the Acuideas Model, and they will retain their own FSP and business identity. Acuideas is remunerated by insurers for performing a binder function.

We have presented the offering to selected independent brokers, who really like the model. The model will evolve with the legislation and technology landscape to ensure that independent brokers remain competitive and offer their customers great value propositions.

Over time Acuideas will introduce unique product offerings on its platform and offer the brokers tools to differentiate their service levels and advice in the market.