What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Going Digital

ARTICLE BY

  • Hollard Life Solutions

SHARE THIS POST

Farhaana Baartman, Head of Marketing and Customer, Hollard Life Solutions

The insurance industry has seen accelerated digitisation and adoption of smart technologies and a gradual shift away from a product-driven industry to a sector that offers more bespoke and personalised solutions to its customers.

Digitisation has become an operational imperative for survival. So, how is digitisation changing the face of the insurance industry? How is this beneficial to the consumers? What are the new trends that are emerging? cAnd what are the barriers that need to be overcome to ensure the inherent benefits that are being brought about by this new era are fully realised?

There is growing evidence that as consumers become more tech-savvy, correspondingly they also become more discerning and demand quick turnaround times. Armed with unfettered access to information, the scales of power have tipped in favour of the consumer.

This shift in power dynamics away from insurers to the consumers has created expectations for tracking visibility and quick turnaround times for claims processing.

The more insurance companies automate their processes, the quicker they can process claims and improve customer experience. The digitisation of the insurance sector also gives insurers the opportunity to gain access to data, which provides them valuable insights, allowing them to develop tailored products that better meet their customers’ needs.

The outbreak of Covid-19 has marked a clear break with how the insurance industry has done business in the past. The industry is going to have to look at insurance differently and be flexible to adjust the cover and match their consumer’s peculiar risk profile.

For example, we expect to see the evolution of products such as day cover solutions that can provide short-term cover for a brief duration. This could be applicable to short-term cover when travelling. The introduction of such innovative products is possible if the sector has the actuarial models and the technology that supports them.

A growing trend in financial services is cross- industry collaboration and partnerships between different stakeholders within the sector. Insurance and fintech companies are forging partnerships with retail stores to offer multiple services to customers at the point of purchase.

These partnerships foster financial inclusion by opening financial services to millions of unbanked and underbanked people.

While digitisation presents many opportunities for the financial services sector, its impact on unemployment remains a pertinent question. In a country that is battling massive unemployment, there are legitimate concerns that the increasing digitisation of the economy may displace employees, and in the case of the insurance industry, nullify the need for intermediaries.

Digitisation can never be a substitute for face-to-face engagement. Research and anecdotal evidence show that there will always be customers that prefer to engage with a broker for advice, particularly on products that are complicated or require expert advice. By talking with a broker, these customers want a sense of comfort knowing that the business can assume its fair share of responsibility by sharing the knowledge of what they need to be covered.

Customers do not want to make important financial decisions all by themselves. They want to know that they have an expert that understands what the future might bring, and who will give them expert advice so that they make informed decisions.

It might be easier to buy funeral cover using digital platforms, but when it comes to products such as disability or retrenchment cover customers often require an expert who will guide their decision.

Digitisation is never going to replace our brokers, nor will it dislodge our call centre agents, as there is only so much information and possible responses that bots and other self-service channels can provide.

While the road to digitisation is imminent, it is equally important that the industry should have the fundamentals in place. Therefore, ease of use of self-service and digital channels should form the cornerstone of the systems that support digitisation. Successful self-service channels include those that have simplified processes to make the claims process as efficient and stress free as possible.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.