Science and big thinking key to succeeding in specialist underwriting

When it comes to specialist underwriting, success is measured by an insurers’ ability to quickly understand and identify the environmental and industry-related influences that will impact on a clients’ business, so that they are able to manage the risk most effectively. It is this talent that makes Santam’s Specialist Business Division one of the most sought after insurers in the country.

These influences can be diverse, ranging from those that will adversely impact a clients’ turnover, its property, legal and contractual commitments as well as its reputation and brand. Influences like the potential impact of increased rainfall or changing weather patterns on a farmer’s crops, or how pollution and environmental disasters can be managed and insured all form part of the Specialist Business offering. Environmental influences that have an impact on most sectors of personal and commercial insurance clients, like climate change and crime, for example, are continuously scanned and researched.

“Our team of underwriting partners and experts continually search for environmental challenges that could have an impact on our clients’ commercial wellbeing. It is our business to know, for example, how an unstable government will affect our client’s business in Africa, or how the introduction of the new Consumer Protection Act will influence a clients’ risk,” says Quinten Matthew, executive head of specialist business at Santam.

Santam and its specialist business partners have their collective eye firmly trained on the future. The company joins and is an active member of a vast number of local and international interest groups that work towards understanding issues that affect risk as well as ways to mitigate these, where possible.

Santam’s head of strategy, Vanessa Otto-Mentz, also holds the position of strategic coordinator for sustainability in the short-term insurance industry for the South African Insurance Industry Association (SAIA). Vanessa recently represented ClimateWise at a high-level global industrydiscussion on climate change in developing countries.She shared insights on the potential for the insurance industry to use its talents for developing proactive risk management to adapt to climate change.

Santam has built up a unique and expert knowledge of the specialist insurance industry over a number of years. “We choose partners who think outside of the box, that are experts in understanding specific industry challenges and that are as passionate about the science of underwriting as we are, and this is what makes us so successful,” says Matthew.

“Our specialist business partners do not only see their role as providing risk transfer and protection for clients but equally recognise that the need to develop talent and ensure a sustainable environment through uplifting the people within South Africa and our target markets. Through various initiatives such as the sponsorship of township soccer, which has been pioneered through SHA, our liability specialist business, or the training of brokers in areas of the business where there is a shortage of skills, we are ensuring that we create an increased awareness of the value that insurance can bring to our economy and our clients,” concludes Matthew.

The top environmental influences affecting risk in South Africa today:

1. Global and local economic climate. Fluctuating economic climates have a very specific affect on both individual and business insurance clients.

2. Political decisions that affect the nation, e.g. Education, water management, and local government for example.

3. The rise and decline of crime levels by region and city.

4. Unpredictable weather patterns as a result of climate change. This affects weather changes in residential and business areas and resultant town planning as well as the direct impacts on the agricultural industry, engineering, property risks and so forth.