Customised insurance solutions for high net worth individuals lacking in SA
While “customised solutions” and “catering to individual needs” have become key buzz words, and indeed, best practices across many industries in recent years, the short-term insurance sector as a whole has been slow to embrace these concepts, especially for individuals with a significant asset base. That is the view of Anton Roux, CEO at Aon South Africa.
He says that personal lines insurance cover (insurance cover for individuals) in particular has been predominantly price driven, with many insurers offering stock standard policies and solutions that try to meet a broad range of client needs.
Roux believes this is a mistake and says Aon South Africa is focused on taking a leading role in driving a far more customer centric and solutions driven approach to insurance. This strategy was one of the key decisions behind the company’s decision to acquire Pinion Insurance Brokers (Pinion) from Investec Private Bank in October 2009. Pinion services the high net worth insurance market.
“If you look at the HNW insurance market, to a large extent it is an area that has been ignored and made to fit into a box. However, as many other industries have realised, these individuals are not comfortable with standard offerings and are looking for solutions that meet their own specific needs. This typically extends to items such as holiday homes, boats, artwork, sport equipment, bicycles and other executive toys”
He says that Pinion has been a pioneer in developing customised solutions for its target market. The company has done this by segmenting its target market according to their interests, identifying possible risks that need to be insured against and creating relevant insurance offerings that meet these requirements.
“For example, clients with sentimental jewellery pieces often require insurance cover and a claims settlement philosophy that enables replacement at their jeweller of choice, so that they do not have to go to a general jewellery outlet to replace their insured items. In addition, because our clients often travel with some of their valuables, Pinion was a forerunner in the development of All Risks cover that is practical. and also introduced specialized cover that protects investment and collectable pieces.”
Roux says that Aon plans to extend this customised solution capability to clients in its other target markets. “We understand that the insurance needs of a retiree differ considerably from clients who are seeking insurance cover for their teenagers’ first vehicle. We aim to provide solutions that cater to these varying needs.”
He says that while there is a space for direct insurers that offer commoditised policies, there is a large section of the South African market that also requires a far more customised approach.
