Insurance industry needs a fresh approach

Broker's role as a partner more important

"The post 2006 insurance and broker environment requires a more innovative and modern approach," says the Chief Operating Officer of DexGroup Financial Services, Sollie Stols. "New technology is available for brokers to strengthen their position in the insurance industry and for insurers to treat brokers more like partners."

Good, professional brokers are just as important as bankers and investment specialists. Brokers don't merely handle people's extra savings or surplus money. They affect people's lives and the assets they wish to protect.

"That's why brokers have to be credible, professional and able to offer sufficient options based on informed, sound advice," Stols says. "The insurance industry finds itself in a new, dynamic phase where all role-players are required to have a fresh approach and think innovatively, without being over-sensitive."

He says a win-win situation beckons beyond the traditional fear of change. If profits and commission are divided fairly to benefit everyone, it will inevitably lead to more professionalism and loyalty, more business and even more profits for all.

Stols emphasizes that times have changed. It can no longer be tolerated that certain role-players in the insurance industry try to control the broker's most important asset his data base and keep profits only for themselves. Professional brokers are still the heartbeat of the industry. The sooner they are recognized, compensated and respected as partners, the better.

"Some role-players may feel uncomfortable with our efforts to negotiate part of the underwriters' profits for the brokers and our insistence that brokers have a bigger say in their own business," says Stols. "But Dex will continue to protect brokers and their important role by means of a post 2006 business model which will benefit all, whilst enabling professional brokers to manage and control their own businesses to the fullest."

Brokers are entrepreneurs who have built their companies from scratch and in the process contributed to the dramatic growth of many insurers over the years. For the latter, they now deserve to be recognized, respected and compensated by the insurers. Brokers are aware of their important role and are committed to the FAIS legislation which protects both the public and the industry.

By the same token the industry has room only for visionary, service oriented brokers with a thorough knowledge of the industry. Their is no room for company-hopping brokers either.

The Dex Post 2006 model amounts to a comprehensive on-line process which integrates all the various insurers' products and computer systems with the Dex technology and management methodology.

This enables brokers to follow and manage the entire process of every client's claim, without the extra burden of cumbersome administrative processes, and allows them to do what they do best to sell policies.

This Post 2006 system offers brokers complete data integrity, faultless back-ups for continuity, virus control, firewalls, protection against industrial espionage, as well as the advantage of receiving their commission within three working days. The Dex system is integrated with that of the insurers. Therefore, brokers can continually obtain and manage the financial or management information and progress reports of every client on-line.

But Stols warns that the Dex system is not suitable for brokers who have anything to hide, because any problem will immediately be revealed to management or the owners.

For responsible brokers, however, it is good news and a dynamic management and growth opportunity. On the other hand, there is no place to hide and the Dex system is so comprehensive that it leaves no room for manipulation.