It was tough attending the 2021 Africa Insurance Exchange (AIE 2021) virtually, having been a multi-year veteran of the physical world event that used to take place at Sun City annually. We missed the crowds, the handshakes and the laughter that permeated the various conference rooms in 2019. We missed the deal-making and networking that took place in the expansive sponsors’ halls and lounges. And of course we missed the chance to break out our dance moves and raise our drinking elbows during the evening sessions, both formal and informal. The sterner among us might lucidly point out: “The conference is for learning, not shenanigans”. Indeed, this year sirs and madams, you were correct.
An expertly hand-stitched event
The organisers of AIE 2021 deserve praise for a comprehensive programme and quality speaker line-up that kept attendees enthralled for the two full-day sessions, held 2-3 August. It was a programme that transitioned seamlessly between human capital, innovation, regulation, sustainability and technology while keeping insurance firmly in focus. Our personal congratulations to fellow journalist and MC, Bongani Bingwa, who did an excellent job of extracting maximum value from the many presenters, while expertly stitching together the two-day line-up. Also worth commenting on, is the conference’s digital platform, which did its part in facilitating person-to-person interactions among attendees. I certainly had the opportunity to reach out to a few colleagues and friends who I had not interacted with for some years.
“Never before has the role of the insurance industry been more vital or evident”, said Bingwa, as the conference got underway. He was on doubt reflecting on the impact of pandemic on life, non-life and health insurers and, more recently, the hammer blow dealt state-owned special risks insurer, Sasria SOC Limited, following the civil commotion that afflicted parts of Gauteng and KwaZulu-Natal in July 2021. IISA CEO, Thokozile Mahlangu, was first on stage to get the conference underway. She thanked the event sponsors, too many to mention, before calling on all attendees to take hands with the institute to elevate the insurance industry at every opportunity. “The content of AIE 2021 is rich and comprehensive; it addresses life and non-life insurance and the financial services as sector a whole,” she said, before handing over to Vivienne Pearson, CEO of the South African Insurance Association (SAIA).
Non-life insurers still working through CBI claims
One can only feel for SAIA, whose members have been rocked by pandemic and civil commotion, each catastrophe with a multi-billion rand price tag. “The AIE is a platform created to share ideas, expertise, knowledge and thought leadership while giving us a chance to engage with and network with other insurance professionals,” said Pearson. She added that the speedy processing of CBI claims remained a priority for the non-life insurance sector and that a legal ruling on the outstanding matter before South Africa’s courts was due end-August. She closed by commending government and the insurance sector for their collaboration around the recent civil commotion catastrophe: “I am confident we will all play a part in rebuilding our country”.
The main programme then got off to a cracking start thanks to an appearance by recently-appointed Commissioner of the Financial Sector Conduct Authority (FSCA), Unathi Kamlana, who was interviewed by Themba Baloyi, the event keynote speaker and President and Chairperson of the IISA Board. This was one of the first opportunities for industry stakeholders to meet their new Commissioner, who started his five-year term on 1 June 2021. “I regard myself as a public servant; and working in public service forces one to think about what is best for all as opposed to the individual,” said Kamlana, in response to a question about what motivates him. He singled out excellence, integrity, hard work and selfless leadership as key factors for success in today’s high-powered financial regulatory environment. My sense following the interview was that the FSCA had appointed a leader who met these exacting criteria.
The consequences of black swan events
My ‘day one’ highlight was the panel discussion tasked with unpacking the regulatory environment in ‘The world post-Covid’. Donald Dinnie, a director at Norton Rose Fulbright was joined by Suzette Vogelsang, Head: Banking and Insurance Supervision at the FSCA and Henning Haagen, a Member of the Board of Management at Allianz Global Corporate and Speciality. We were soon engrossed by the discourse on the legal interpretation of insurance contracts; the impact of pandemic on insurers’ solvency and the consequences of black swan events for insurers and reinsurers, among other topics. PS: The writer acknowledges that there are differences of opinion as to whether pandemic qualifies as a black swan event, given the myriad epidemics in preceding decades…
Some excerpts from the panel discussion include Dinnie’s comment that insurers would have to pore over hundreds of pages of court judgements for guidance on the rewriting and rewording their policies. “Local courts have given us a blunt line as to the interpretation of policies; these views will inform the industry as we consider, reconsider and reformulate policies,” he said. Haagen, meanwhile, observed that the pandemic had “created a new risk landscape, pushing digitalisation and technology to higher levels and creating disruptive scenarios, all while heightening cyber risk”. And Vogelsang singled out the “excellent collaboration across the FSCA, the PA, insurers and National Treasury as reasons [the industry] was able to weather the pandemic storm”.
AI and machine learning could elevate financial advice
My favourite from ‘day two’ was the fast-paced interaction between three technology experts, who were called upon to describe ‘Innovative means of distributing insurance’. Kudos to Riaan Singh, a Partner at PwC; Willem van der Post, CEO at xTech.Capital; and Gustaf Agartson, CEO at BIMA for covering so much ground in their allotted hour. The panellists agreed that human advice was BREAK an integral part of the tech environment, going as far as to admit that artificial intelligence (AI) and machine learning, when applied to insurance distribution, would create new opportunities for human led advice interactions. I include a quote from each of the panellists to give readers an idea of their views.
“There is a discrepancy between how the industry talks about advice and the definition given by consumers; providers need to improve access to advice and make it more scalable,” said Singh. There was broad agreement that technology could solve many of the access and inclusion issues the industry presently suffers from. Gustav Agartson, meanwhile, encouraged product providers to keep their final sales process in-house, to secure the maximum benefit from channel partner interactions. It is imperative for you to control the ‘close’ that follows on from your marketing and selling initiatives, regardless of which channel you are using. And Van der Post suggested that providers focus on reaching their consumer market via the correct channel, with the right product and at a time “when consumers have a propensity to act”. He added that insurers and insurance brokers should leverage data analysis, AI & machine learning to drive digital processes. There was so much more on offer during their discussion; but it was not my intention to go into detail in this newsletter.
And then, as swiftly as it started, the MC called last round… Some continued to attend the IISA AGM; but we doubt too many re-joined the live event stream for the networking and entertainment promised from 4PM that evening. The writer, for one, is not sure that he can get down and Boogie, man alone in a four by three room; but I know there are some hardened insurance types who rise to any ‘have fun’ challenge. Sadly, the writer could not test this theory; he had to cut away to get cracking on a deadline that could not be allowed to slide.
Writer’s thoughts:
Perhaps it was the online format, or perhaps it was attending the event from the comfort of our home office; but AIE 2021 whistled by in a heartbeat… Did you attend AIE 2021? If you did, we would love to hear your thoughts on the event programme as well as your favourite presentations from each of the two days. Please comment below, interact with us on Twitter at @fanews_online or email us your thoughts editor@fanews.co.za.
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