Unique approach to liability business

Just about everything about Camargue Underwriting Managers is different – from their groundbreaking " Blue Ocean" business strategy, to their own brand of bottled chilli. FAnews spoke to managing director Mitch Marescia to discover what makes this approach so successful.

Camargue is an underwriter of niche insurance products and a provider of risk management solutions to a broad spectrum of industries in South Africa. It was founded in 2001 to meet the rapidly changing risk transfer needs of Southern African businesses operating in a challenging and changing global economy.

On the right track

Over the last nine years, many highlights have ensured the company operates in a league of its own. The Camargue team tackled the challenge of convincing insurers and reinsurers of the viability of their unique approach to liability business, and garnering market support. This was followed by launching on what can only be described as a high note, selling the very first Camargue policy on top of Kilimanjaro. Indeed, their groundbreaking approach has become known as "The Blue Ocean Strategy", now recommended by leading business strategy experts as a way to insulate businesses against competition and to make it recession proof.

In June 2006, Camargue became an independent, 100% management owned UMA. The company has assembled over 400 service providers that support their clients across the continent, and have proven that this is a sustainable model.

"It is very reassuring to look back at the progress we have made over the last nine years and to see that we are on the right track," says Marescia. "We have sought to differentiate ourselves by using our M³ principle of Managing, Mitigating and Migrating critical business risks of our clients."

Innovative products

The main products lines include Directors & Officers Liability, Pension Fund & Medical Trustee's Liability, Employment Practices Liability, Commercial Crime (Fidelity Guarantee), Broad-Form General Liability, Comprehensive Broker Professional Indemnity, and Technology Errors & Omissions Liability.

Marescia says that measured in terms of market share and premium income, the Directors & Officers book of business is Camargue's flagship product. "Well over 600 boards are insured with us, including a large number of blue chip JSE listed companies. However, measured by accessibility of products and their relevance to the day-to-day running of a business regardless of size, our general liability and commercial crime policies lead the pack."

Adding value

Every policy underwritten by Camargue includes integrated, value added risk services. The Directors & Officers product includes IOD (Institute of Directors) membership, sponsored director training and arbitration services, while the Pension Fund Trustees benefit from sponsored training programs, private arbitration and forensic risk assessment.

The General Liability product includes Emergency Medevac, Consumer Protection Advice, Commercial Law Hotline, Quality Control expertise, Private Arbitration and Agri-Chemical Specialists. Forensic Assessments and Fraud Hotlines are included in the Commercial Crime product, while the Employment Practices cover offers 24 hour labour advisory services, representation at CCMA and Labour Court, as well as Private Arbitration. For brokers, the PI product features Compliance Specialists, Private Arbitration, and Labour advisory services.

More than just insurance

Even considering these enhanced product offerings, there is more to Camargue than just insurance cover.

"Much has been written about a new way of working, 'Capitalism with a Conscience' and being a good corporate citizen," says Marescia. "At Camargue, we are living the new way and proving that expertise, good networks, and a sustainable value proposition for all partners in the insurance value chain, can work. However, it requires a lack of greed and delayed gratification by all. We have exactly these characteristics amongst all our partners, both local and international, which combine to create a unique offering for our clients."

Managing risk

As a provider of risk management solutions, Camargue's experience has shown that while pre-loss assessments are critical, ongoing support for the insured provided by specialists in their various fields is paramount. "Regrettably many South African insurers still view risk management and assessment as tools to minimise their insured losses," notes Marescia. "Clients will not buy into risk assessment and management programmes unless they see real value being added to their business.

"We add this value through the use of senior advocates, medical specialists and labour advisors on our various products. Every client has access to an outsourced team of experts in HR, Commercial Law and Corporate Governance, as well as industry specific services in hospitality, agriculture, manufacturing and retail."

Building a solid foundation

Much of Camargue's success is a result of its strong team. "We have a team of dedicated specialists, with support staff on each product line. We are in the process of developing a pool of underwriters with a more generalist skill set."

Training is critically important at Camargue. "We have to have staff that are competent across all facets of underwriting and general business administration. However, our staff take ownership of their own development, with management providing all the necessary support.

"We also provide training for all our brokers, to ensure that we have a confident and competent distribution channel for our niche products. A broker that has little knowledge of our products will not have the confidence to attempt a sale or want to run the risk of running foul of the FAIS act or his own professional indemnity exposure. This aspect of our training supports market development and true new business spend in our sector of the industry."

Marescia says that there is a significant shortage of skills in the liability insurance niche. "The existing and previous experts have done very little to ensure a broad base of knowledge around liability products in particular. If not addressed, it will hamper growth in this sector. We believe that a Liability Academy, funded by all the insurers underwriting in this niche, should be set up and accreditation achieved from SAQA for Liability Insurance courses. We should seek to harness the knowledge and time of those past and present doyens and commence an accelerated training programme of underwriters, brokers and reinsurers, around our products."

The Fun Factor

But, notes Marescia, it is not all work and Camargue recognises the importance of a fun, vibrant environment to drive constant innovation. "We have a very diverse mix of cultures and personalities in our team. Each brings a degree of flair and individuality to the way that we do business. We have empowered our staff to make decisions and to share in the fruits of our collective labour. Suggestions on underwriting methodology and marketing strategies from all staff are taken seriously. This helps us bring our unique and fresh approach to what is generally a very staid industry.

"We also have a very strong family spirit at Camargue that embraces an excessive amount of the 'Fun Factor'. Our friends in the market will know that we are nuts about chillies, which you will find subtly creeping into all our marketing paraphernalia! We have our own bottled brand that we give to our 'HOT' supporters."

The edge for brokers

Marescia says that Camargue understands the many challenges brokers face, and have structured their products and support services to lighten the burden and create new opportunities for brokers. In addition, Marescia offers a few words of advice for brokers. "Continue to increase your knowledge on all products in the industry and always add more value than you take from any transaction with your client. Strive to constantly understand more about risk, and risk management in particular. We believe that this will be your edge going forward."