Amid the changing insurance needs of businesses in 2024 and beyond, brokers have a key role to play in helping their clients’ businesses grow.
As the insurance landscape changes and becomes more complex in 2024, businesses will need bespoke assistance to understand their risks and identify the best ways to mitigate them.
Some of the top risks facing businesses this year in South Africa will emanate from political instability, possible labour unrest and economic uncertainty as the country heads into the general elections. This will probably be the most highly contested general election in the history of our democracy as the Constitutional Court ruled that independent candidates be allowed to contest.
This calls for businesses to be on the alert by putting risk management plans in place to mitigate all these underlying risks. Businesses must work with insurance brokers to assess their risks and determine the best insurance coverage for their business needs.
The specific insurance needs of the businesses will vary depending on their sizes, industry, and location. At the same time, the cost will vary depending on the type of insurance, the coverage and the risk profile of the individual client.
Increasingly competitive markets
The insurance industry is becoming increasingly competitive, with new entrants entering the market and existing players expanding their offerings to meet the changing demands of their clients. They are also looking for different ways to reach customers and grow their business through adopting new digital technologies, such as artificial intelligence (AI) and machine learning.
Insurance companies are also competing to improve their customer service. This is being done by providing customers with more convenient ways to contact the company, such as online and mobile applications. Technology is an important tool and can be used to streamline many complex and laborious processes involved in the insurance industry, from underwriting to claims processing. This can help to improve efficiency and reduce costs, which can make insurers more competitive and agile.
Changing landscape of customers
Modern insurance customers are increasingly demanding more personalised and convenient services from their insurers. These new customers – predominantly millennials and Generation X – want to be able to access their policies and make claims online. They also want to be able to speak to a live person when they need assistance.
To meet these demands and attract new customers, insurers need to offer innovative products and services that meet their needs. This could include creating digital platforms, personalised risk assessments, and bundled policies.
Customer service is also one of the most important factors in determining whether or not a client will stay with an insurer. Insurers and brokers need to make sure that they are providing excellent customer service, both before and after a claim is filed.
Role of brokers in the digital age
These challenges are putting pressure on insurers to innovate and find new ways to meet the needs of their customers. As a result of these changes, insurance brokers will need to have a strong understanding of risk management and business advisory services. They will also need to be able to communicate effectively with businesses and understand their unique needs.
Given their experience, skills and knowledge, brokers are well-positioned to assist businesses in overcoming these challenges and risks – notwithstanding their access to a wide range of insurance products and services that their clients can choose from. However, their role has evolved, and now they must focus more on risk management and advisory services. This includes advising businesses on financial planning, succession planning, and other business-related matters.
The insurance industry is constantly evolving, and the competitive landscape is likely to continue to change in the years to come. As the economy becomes more complex, businesses will need more advice on navigating the risks and continuing to thrive. Insurance brokers are here to provide businesses with the expertise and guidance they need to find the right insurance policies for their needs.
Insurers and brokers that can adapt to these changes, will be well-positioned to provide businesses with the right insurance solutions and services to help them grow their businesses, protect their assets against any eventuality and weather the storm.
At Infiniti Insurance, our relationship with our brokers is the cornerstone of our business, and this is also where knowledge is shared. Our brokers are well-placed to provide our mutual clients with information on various risk mitigation strategies some of which can be remarkably simple and easy to implement.
