Santam's new broker model revealed

Santam has announced a new Broker Management Model to be launched in the second half of 2007, promising that it will significantly enhance the relationship between Santam and its brokers. FAnews probed a little deeper to find out what value this model holds for brokers.

According to Santam, the new model is a direct response to the needs and views expressed by brokers and clients, and the product of two years' research and development.

Key elements of the new model include the introduction of Key Account Managers (KAMs) instead of Broker Consultants, centralisation of Personal Lines Centres of Expertise and the implementation Commercial Lines Centres of Expertise.

Key Account Managers

The move from Broker Consultants to KAMs provides the broker with a single point of contact, as well as guidance and expertise across all classes of business. This will not replace the need to engage with specialists in the underwriting areas but will focus on a Santam solution rather than separate business unit delivery.

With operational and administrative responsibility vesting in 'Centres of Expertise', KAMs, without the burden of these responsibilities, will be empowered to focus their attention on marketing and the provision of efficient business solutions.

The key focus will be to serve brokers in an advisory capacity. The KAM will be empowered to make decisions based on their skills and expertise. Client contact, i.e. the KAM visiting the client with the broker, will more than likely occur in specialist functions which will be co-ordinated in conjunction with the broker request.

Centres of Expertise

Underwriting experts will be located in the Centres of Expertise, to ensure immediate access to expert knowledge. This will improve service and turn around times, facilitate immediate access to decision-making, technical advice and assistance and provide an efficient delivery platform for all transactional activities. It will also release the KAM of administrative duties.

Equally staff will be more empowered to make decisions which will speed up turn around times and will position the processes and underwriting closer to the point of sale.

Self-service

The company is also in the process of developing a web-based electronic tool that will provide brokers with immediate access to quotations, and the delivery of policies in respect of selected products. It is a self-service device designed to remove processing delays and will enable brokers to access commercial quoting and policy administration on a 24-hour basis.

Client segmentation model

Santam has developed a new client segmentation model, which it says will provide brokers with a better understanding of the market.Client segmentation takes into account the needs, attitudes and behaviours of clients in a market. This will enable Santam to better deliver tailor made solutions which will more accurately meet their needs and expectations. Client segmentation will be flexible to cater for the diversity which exists within a segment.

Premiums will play a role in the segmentation model, however risk management considerations, communication methods and understanding the needs of the client will contribute to ensuring that Santam is better able to respond to each client segment.

Client ratings

Santam says that it will manage the risk per client taking into account all business which the client has with Santam.

"As part of our client segmentation approach, clients will be rated according to their risk profile which could mean that the contributions which less favourable risk clients pay may need to increase. The solution will not be restricted to premium alone but will also focus on risk management actions to improve the risk and lower the premium component for a more balanced and sustainable solution. Conversely, clients with a more favourable risk profile may find that their premiums could reduce over a period of time.

Claim payments

Santam says it has a separate focus on claims which will be considered under a separate initiative and project. This project will focus on improving claims service, communication with brokers and clients, speed and accuracy in settling claims and implementing a single claims contact person. The KAM will align the broker requirements and ensure claims payments meet the agreed service level standards.

The roll out

The roll out of the Web-e application will piloted in various regions during the first quarter 2008. Thereafter a roll out plan will be put in place which will include installation of the application, including training. The wider roll out of the Broker Management Model which includes the implementation of the KAMs and setting up the Centres of Expertise, will occur during 2008.