Managing the challenges as a specialized business

Although the local and African specialist market is set for exponential growth, brokers and the insurance industry face a number of challenges in today’s market.

Brokers and insurers have to comply with stricter regulations and legislation, increasing competition from the direct market creates a complex environment for customers and underinsurance and non-insurance is still a major concern for South Africa.

Both small and large companies are increasing their liability insurance to meet the requirements of the Consumer Protection Act (CPA). Inconsistencies in regional municipal service delivery, wide-spread fraud and corruption have also meant that companies have had to become more serious about insuring against risks.

The value of the broker, especially in a more complex specialist business segment, will continue to grow.

“The broker’s role becomes more vital in the specialist business market, as these professionals are a critical source of information and advice that help clients navigate the complexity of the specialist insurance industry,” says Quinten Matthew, executive head of Specialist Business at Santam.

A thorough understanding of clients’ business and the industry challenges and risks they face are the key requirements for insurance clients in the specialist business sector, says Matthew.

“Specialist insurance is more complex because the environments that the client’s businesses operate in are affected by a very different set of risks. A broker and insurer that not only understand your business, but also the industry that you are in and the challenges you face is best placed to navigate the inherent complexities involved,” says Matthew.

Clients in the specialist business sector need to be treated differently. They require a broker and insurer that can understand their business and that also offer bespoke insurance and risk management solutions.

“Companies that offer a one-size-fit-all insurance offering are not sustainable in the specialist business sector, which is driven more by individual, expert advice, efficient claims resolution and an insurance solution that is tailored to match the very risks that they face,” says Matthew.

“Clients want to know that their risk is secure. The value of an insurance firm is always delivered at the claims stage of the relationship and our ability to consistently and efficiently manage claims has been at the centre of our success. We have, over the last two years, worked hard at improving our claims division to make it the best in the business, and we plan to keep it this way,” says Matthew.

Efficient claims resolution remains a top priority for the sector and for Santam.