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One of the biggest emerging trends in the world today is that the population of the world is getting younger. While this has always been a characteristic, the culture gap between generations is stark and millennials – who now have the buying power in the insurance industry - are significantly different from their parents.
The South African life insurance industry has skilled underwriting talent and product developers who offer products that are basically irresistible to end-users. However, the more new products become available in the market, the more pressure there is in the underwriting process.
When comparing South Africa to the rest of the world, it is evident that the South African public faces some of the most taxes in the world. The public is taxed to the limit, and government has now introduced a shift in the way income protection policies will be taxed.
While insurers have always strived to act in the best interest of policyholders, it is important to bear in mind that Treating Customers Fairly (TCF) will result in the Financial Services Board (FSB) looking at the activities of insurers, as they have a responsibility to act with the best interest of the customer at heart.
Do you think short-term insurance broking will survive the AI plus humanoid robotics age?