Insurers and brokers are well placed to help customers protect against a wide variety of risks – but it starts with building a trusting relationship.
The insurance industry in South Africa has shown remarkable resilience during challenging times, such as the global impact of the COVID-19 pandemic and catastrophic events like the 2021 KwaZulu-Natal July unrest and subsequent floods. Insurance was at the forefront in helping businesses and homeowners to recover and rebuild to maintain their standard of living and continue business operations.
This highlights the significant role the insurance industry plays in providing financial protection and addressing social and economic challenges to sustain the lives of millions of people every day. In the current era of advanced technology and abundant data, as insurers, we are well-positioned to leverage data to inform our clients of the imminent risks they face and provide guidance on risk mitigation strategies. This information can empower clients to make informed decisions regarding their insurance coverage to protect their valuable assets, such as homes, vehicles, and businesses, from financial losses resulting from peril, theft, or liability.
Insurers must develop evolving and affordable product offerings that address contemporary macroeconomic risks faced by clients. These risks may include business disruptions, crime, and extensive infrastructure and property damage due to the frequent flooding in the South African market.
Importance of efficient claims management
A seamless and efficient claims management system in an insurance company is fundamental to building client trust and loyalty. This system will result in a quick and fair claims resolution that further reinforces clients’ confidence in the insurer’s commitment to fulfilling its promises. As insurers, we must strive for prompt communication throughout the claims process and regularly update clients on the progress of their claims.
Building long-term successful relationships between insurers and clients requires transparency. Insurers must provide clients with clear and comprehensible information regarding their policies, coverage terms, and claims processes. Insurers that prioritise the needs and concerns of their clients, demonstrate a genuine commitment to their well-being.
Adhering to ethical standards, treating customers fairly, and avoiding deceptive practices, builds a solid foundation for a long-term relationship based on integrity and trust. In this environment, it is critical to conduct our business ethically and comply with regulations to gain the trust of our clients.
Insurers must actively listen to clients’ feedback and take steps to enhance products and services. In that case, accordingly, this will illustrate that insurers value clients’ opinions and are committed to meeting their needs. Tailoring products and services to clients’ unique requirements further demonstrates a commitment to providing customised solutions.
The role of brokers in supporting clients
Brokers can play a critical role, such as encouraging clients to invest in additional security measures to protect their properties, movable assets, or vehicles, potentially reducing premium increases. During this unprecedented time of natural perils, brokers also play a crucial role in assessing the risks of underinsurance, providing regular updates, and advising clients on coverage adjustments as new risks emerge. As insurers, we rely heavily on brokers and advisors to continuously educate our mutual clients about the importance of maintaining adequate insurance coverage against any unforeseen event.
Individuals and businesses can navigate global challenges more effectively if they embrace the proactive role of insurance. Advisers and brokers can use insurers’ data to assess, identify and advise their clients about the risk of underinsurance or over-insurance. This will ensure that clients choose insurance products that align with their needs and provide adequate coverage. If we all work together, insurers, brokers, reinsurers and insured, we can mitigate the risks, build resilience, and ensure the long-term sustainability of the businesses, society, and insurance industry.
