The commercial and business insurance industry, in the same way as many other sectors, have faced many challenges over the past year. The COVID-19 pandemic has affected the way insurers work and reshaped client behaviour. Many of the changes Standard Bank Insurance has seen will define how we interact with our clients after COVID-19 is gone.
The pandemic has provided business owners with the opportunity to re-evaluate their existing insurance. In the past, businesses would purchase insurance that covered them for losses arising from fire, storm, theft, and similar physical perils. Today, they need to consider how more onerous regulations, global supply chains, extensive use of technology and emerging risks, such as cyber-crime and pandemics, could directly or indirectly impact their business.
Importantly, businesses must now also consider how they can provide programs that ensure the well-being and safety of their employees when disasters strike.
Clients becoming more knowledgeable about terms and conditions on their insurance policies has expedited claims as clients ensure that they comply with the requirements of the policies and importantly, retain the necessary supporting documents and other evidence to validate their loss. Clients have also started utilising online capabilities to shop around for insurance and to submit claims. Consequently, insurers have implemented technologies to improve workflow routing and create automated processes which in turn provide clients with a more satisfying and efficient experience. Many clients have become comfortable with ‘digital’ engagements and site visits are now only conducted when necessary and where the required safety protocols can be adhered to.
Clients who adopt additional technology developments that may lower their risk profile such as driver telematics and scoring, geyser leak detection, and smart, eco-friendly homes often get a premium reduction and, in some cases, further benefits from savings on their utility bills.
If one is to provide clients with appropriate advice and get the best value insurance for their businesses in the current environment, then the importance of conducting full insurance portfolio reviews and working closely with them cannot be emphasised enough.
Standard Bank Insurance has invested in technology that truly places our client at the centre of our business. We are not satisfied with simply providing a good service and have begun a journey to migrate off the many disparate systems that have challenged our ability to provide a truly awesome client experience.
Businesses were severely impacted by COVID-19 and the subsequent lockdown, which led to insurers having to adapt and accommodate business and commercial insurance claims.
We have supported our Business and Commercial insurance clients by considering the most appropriate cover and each client’s unique circumstances before tabling the most suitable options. We focused on our existing clients and proactively made contact to understand how they were impacted. We then worked with our insurer panel to offer various solutions to provide our clients with some relief.
The measures which have been put in place to accommodate clients include:
• Premium discounts for lower exposure (e.g., parked motor vehicles during lockdown).
• Premium relief by temporarily removing low-risk, low-value items from the portfolio.
• Premium relief by agreeing with the insurers on deferred premium payments.
• Premium discounts for increased deductibles.
• Premium relief from deferring annual inflationary renewal increases.
Cashflow support by paying any cash-back benefit that has accrued.
These have been challenging times, but they have also presented opportunities for new ways of working and interacting that insurers must adopt wholeheartedly if they are to improve the experience for their clients.
Insurance companies need to continuously refresh their offering to ensure that they provide value in an ever-changing world where customers expect prompt and personalised solutions. Modern technology allows much more flexibility to identify opportunities and develop new products and services that are relevant to the risks clients now face.
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