Transforming the engineering insurance sector
01 February 2013 | Magazine Archives FAnews & FAnuus | Features / Profiles | Anne-Marie Fourie, AC&E, Kalim Rajab, New National Assurance Company
New National Assurance Company’s engineering UMA, AC&E Engineering Underwriting Managers, has gone from being a ‘new kid on the block’ to an award-winning specialist in the niche engineering space in just six years. This trajectory is probably the result of the commitment and passion of the people who have driven the business over the years.
AC&E Engineering was formed in 2006 by South Africa’s oldest fully black-owned short-term insurer. New National itself dates back to 1971, when a group of previously disadvantaged businessmen set out to help to transform the industry in what they believed would be a profitable, sustainable fashion.
So it has proved – today, New National has a footprint throughout South Africa and is a medium-sized insurer that writes in most major classes of insurance.
New National decided to go the UMA route in 2000. The model was attractive to the company because it provided it with the opportunity to partner entrepreneurs and technical specialists in their fields.
"The model brings efficiency to the industry by bringing the company closer to underwriting and administration specialists,” says Kalim Rajab, director of New National. "It also reduces cost because there is no duplication of work and effect. This translates into improved service levels for policyholders.”
Blazing a trail
Since 2009, AC&E has been run by Anne-Marie Fourie, a tenacious industry player who has achieved considerable success in a male-dominated industry. She co-founded Mirabilis Underwriting Managers in 2006 as an independent company (which is now owned by Santam) as well as AC&E Engineering in 2008.
Her willingness to challenge the established engineering administrators of large insurers has allowed AC&E to break into a specialised area and begin enjoying the support of corporate, medium and small markets in South Africa and throughout sub-Saharan Africa. AC&E, supported by New National, has offices in Johannesburg, Durban, Cape Town and the Eastern Cape, as well as strategic partnerships throughout Africa.
Fourie says the biggest challenge was to introduce a relatively unknown UMA into a highly competitive market in which relationships had already been established. Being the ‘new kid on the block’ is never easy, but Fourie set out to convince brokers and clients that AC&E was worth taking a chance on.
By actively supporting emerging, black-owned brokers and partnering with New National Assurance Company, Fourie can be seen as a trail-blazer in more ways than one.
Prejudice can be overcome
Fourie’s experience of this complex, specialised field of insurance drove her to overcome existing prejudices – including the gender bias prevalent in the industry.
"The very first time I visited an engineering site with our then CEO, to survey the risk, the broker there asked me if I was the secretary. He couldn’t believe I was in fact the engineering underwriter,” Fourie recalls. This harsh experience led her to realise just how much discrimination has to be overcome in the workplace, particularly in a male-dominated field.
Small wonder, then, that Fourie tackles all sorts of prejudice head-on. She has been eager to promote female representation in a sector which had no major representation prior to her involvement, and she has also been keen to create value for the company’s black shareholders.
"New National is an economic success story – it has created value for our shareholders over a 40-year period and we have also brought diversity to the industry,” she asserts.
A dazzling achievement
AC&E Engineering Underwriting Managers recently received the prestigious Diamond Arrow Award in the category of engineering risks by PMR.africa, a national survey agency that uses the awards to celebrate excellence in the field as well as set a benchmark in the industry. The Diamond Arrow means a company has been ranked 1st overall and rated at least 4.10 out of 5.00 (the equivalent of outstanding).
A company cannot ‘enter’ to be in the running for an award – it has to be nominated by respondents with very clear criteria in mind.
The awards are the culmination of a research process whereby companies and institutions are rated based on respondents’ perceptions, with a focus on evaluating and measuring customer service and satisfaction.
Companies were rated according to 11 attributes, including adaptability, attitude, competence, the confidence level and financial strength of the underwriter, the full authorisation to accept or agree to claim, innovation, the know-how of the advisors, quality, speed and reputation – which included the integrity of the brand, CSI and so on.
The research process was a fairly involved one and involved interviewing short-term broker firms and short-term insurance companies during September, October and November last year.
A random sample of 120 directors, senior managers and short-term underwriting managers selected from short-term broker firms and short-term insurance companies were called upon to assess the strengths and weaknesses of the companies they rated. Telephonic interviews took place and semi-structured questionnaires were used.
The methodology was completed by having back-checks done at all stages of the fieldwork.
Fourie says AC&E scored the highest rating on a mean score of 4.36 out of a possible 5.00.
"This award was a first for us and it shows that our industry peers recognise that we offer tip-top service – we’re a carrier of repute,” says Fourie. "To have the industry publicly acknowledge us makes us very proud.”
The awards function was held at the Hyatt Regency Hotel in Rosebank in February 2013.
