What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

A matter of trust

ARTICLE BY

  • Steve von Roretz
  • Chairman
  • Leppard

SHARE THIS POST

A UMA, in its truest form, is an autonomous business but operating in partnership and with the support of a licensed insurer. This UMA has core skills that concern underwriting and pricing risk, claims management, superior technical competence and the ability to build appropriate insurance products and services.

Relationship status

A UMA, by its nature, has trust as a key foundation to its offering. This trust flows from the support of reinsurers to the insurer, through the UMA to the advisory intermediary and on to the customer. The UMA and members of SAUMA understand this.

The modern relationship with an intermediary is not about the old-style lunch and golf but rather a trusting relationship with the UMA. This trust is reflected in the support provided to the intermediary and the intermediary’s customer. Knowledgeable UMAs support the intermediary with guidance, high-quality product, excellent service and focused expert knowledge. The informed intermediary will use UMA members of SAUMA as preferred markets, knowing that in doing so their customer will receive the benefit and the intermediary business itself will gain business due to a quality offering.

Change is coming

Challenges to this relationship abound into the future, however, with looming and rather threatening legislative changes, technology and artificial intelligence replacing swathes of industry norms and data and information requirements becoming the underpinning enabler to any future success and sustainability. 

While these challenges will alter future market relationships, all is not lost. Realignment will be necessary, and clarity of purpose will become the guiding mantra. Legislative changes will set the rules of the game and licensing requirements linked to accreditation to do certain things will need thought and strategic decision making. The intermediary focus on advice and risk management support to the insurance consumer will be a critical skill and this will need the support of the UMA in agile product development. Legislation may mean a need to separate and delineate duties, removing the duplication rife in our industry and reducing channel cost. The consumer will benefit as a result.

Technology and artificial intelligence will replace the mundane, but importantly will significantly enhance the ability to assess risk and exposures with common traits. This will enhance the quality of underwriting by the UMA. This will not replace the underwriter but rather support and ensure accurate pricing, product development and excellent service. The art of underwriting will not be lost and the advisory intermediary will be able to rely on the imagination of the UMA.

Role of data

The elixir of the future is data. And there is a universe of data out there. More structure is necessary and for the end consumer it is necessary to appreciate that this data is not proprietary to the intermediary, the UMA, an insurer or reinsurer but rather, for the sake of the consumer, must flow strongly and without constraints between industry players. Protection of data is noted.

It does not matter how we work and whether we are in an office, remote, or combination of both. What is important is to know our respective roles, focus clearly on the interest of the consumer, be sure to understand and accept our limitations, seek expert support and ensure the customer understands and accepts that an intermediary cannot predict nor guarantee everything when things go awry.

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.