Embracing power in numbers
Steve Symes, CEO of Genasys Technologies.
For many years, there has been a collective voice for insurers and intermediaries, but no voice for system providers. These are the companies that provide the necessary technology to insurers and brokers to carry out the outsourced functions that they have been tasked with.
This is set to change as the lone voices in the night have come together under a unified banner.
Working past the challenge
A number of the industry’s biggest insurance systems providers have banded together to form the iSPF, a body that will represent the interests of systems providers in South Africa. Outsourcing is a core feature of the South African insurance industry and without these independent service providers, the options available to both brokers and clients would be greatly limited.
It is however a complicated relationship between insurer, broker and system provider, and this has left gaps in responsibility and understanding of who does what and where the industry should be.
Steve Symes, CEO of Genasys Technologies which is a founding member of the iSPF, says the challenge they always had was different standards and different messages traveling across the industry. It’s not a clear open message between system providers on the one side and insurers, broker and clients on the other side. This body can now engage with the industry on technological trends which could cut costs in the industry.
Adding value
There is a lot of value that can be added by the involvement of systems providers. Technology will grow its influence on the industry going forward, and the iSPF can provide the industry with guidelines from a technology perspective that will manage and minimise the cost of any decision they make.
The iSPF has engaged with the Financial Intermediaries Association (FIA) as well as with a number of key insurers, and the response has been positive. While the lone voice in the industry has been a challenge for the systems providers themselves, the challenge is just as pertinent for insurers.
“The FIA and the insurers want a representative body in the industry they can engage with. At times, insurers have different companies performing outsourced system functions for them. The insurer would then need to engage with each of these companies on an individual basis. A lot can be said about the value of a single voice in the industry,” says Symes.
One of the core purposes of the iSPF is to implement standards and methodologies among systems providers that would actually improve the process of achieving the outcome they need to achieve. In order to do this, all members of the iSPF need to agree to and support those standards.
Building a bright future
There is no doubt that this initiative, once it gains momentum, will benefit the industry. The iSPF will be able to play a key role in the industry in reducing costs as there is a significant investment into technology systems. If these systems can be refined by methodologies and standards, there can be significant savings for end users.
The iSPF is made up of the five major systems providers in the industry, which represents the interests of about 60% to 70% of the market. These five are Genasys, Tial, Cardinal, Innovation Group and Brolink.
Symes says that this will be opened up to all technology companies in the industry. The iSPF is looking at two types of memberships. The first is a full membership, which is for companies that are providing policy administration and claims systems. The second membership is an associate membership which is for those companies who only supply support or IT services.
Editor’s Thoughts:
Engaging with the industry as a collective voice has its benefits in that systems providers will now know how to best serve the industry. Insurers can also benefit from this because they will receive focused advice on systems and processes that will help them improve systems to cut costs. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
