In an environment where cybercrime, climate risk and economic volatility are rising, the role of the intermediary has never been more critical to the financial stability of households and businesses. From natural disasters to cybercrime, the risks facing society are growing in frequency and complexity, making the role of insurers and intermediaries more critical than ever.
Another significant risk is the increase in cybercrimes targeting individuals and businesses worldwide, and South Africa’s rapid digital transformation has made it a prime target for cybercriminals. Interpol’s Africa Cyber Threat Assessment Report 2025 placed South Africa among the most targeted nations on the continent for ransomware.
The importance of the broker in the value chain
What cannot be underestimated or overlooked is the value and importance that intermediaries and insurers play in clients’ lives and in a country’s economy. This could become quite complex in the business sector, where risk management and the right product with the correct participant fit are vital. With the rapid evolution of the technological landscape and the constant emergence of new digital capabilities, customer demand and requirements have also changed.
As digital channels and data-driven underwriting accelerate, customers increasingly expect to co-create their insurance solutions, access information in real time and receive more tailored advice. While direct digital models have grown, most clients, particularly SMEs, still rely on intermediaries to help them interpret evolving risks, new wordings and regulatory requirements, and to compare increasingly sophisticated products across insurers. This means the broker’s role is being redefined, rather than removed. Modern intermediaries must combine traditional advisory skills with a deeper understanding of cyber, technology and operational risk, as well as the ability to use data and digital tools that add insight and speed.
Expectation management remains a core part of that role. Customers often interpret terms like “comprehensive” to mean “all-risk, no exceptions”, leading to disputes when exclusions, limits, deductibles or conditions apply. A skilled broker ensures that cover is clearly explained at inception and renewal: what is included, what is excluded, how first amounts payable work, where sub-limits apply and which risk-management obligations sit with the client. By aligning expectations to the contract up front, brokers reduce the likelihood of conflict at the claims stage and support more sustainable, transparent relationships between customers and insurers.
The value of this advice becomes most visible after a loss. Many individuals and businesses can attest that, without appropriate insurance, a single event, a cyber-attack, major fire, natural catastrophe, motor fleet loss or key person event, could have resulted in severe financial hardship, closure or significant job losses. With the right structures in place, they can instead repair, rebuild or continue trading, protecting livelihoods and local value chains. In this way, intermediaries and insurers do more than pay claims: together, they underpin economic activity, protect tax bases and support social stability.
Claims management: the make-or-break moment
Yet insurance is only as effective as the understanding behind it. Policies must be matched to needs, risks must be anticipated before they materialise, and, when the unexpected does occur, the claims process must deliver on the promise made at the point of sale. This is where the industry’s true value is tested and, ultimately, where trust is won or lost.
For customers, the moment of truth is the claim. They need intermediaries and insurers who understand their context, can help them anticipate and mitigate risks, and can guide them through a claims process that is efficient, empathetic and outcome-focused. As loss events become more frequent and complex, from multi-party cyber breaches and supply chain failures to climate-related property damage, claims management has become a core strategic differentiator for insurers and a critical driver of customer retention.
The broker plays an essential advocacy and translation role in this process. By ensuring that clients understand what they are covered for, and by helping them document and present their loss accurately, brokers improve both the speed and fairness of settlement. Consistency, transparency and clear reasoning are crucial so that clients can see how their policy has responded and why certain elements are covered while others fall outside the agreed terms. This is especially important where policies involve layered programmes, self-insured retentions, aggregates or complex conditions precedent to cover.
Claims are often highly emotional events that occur at times of stress and uncertainty. Exceptional customer service, timely communication, proactive updates, clear next steps and visible collaboration between the broker and the insurer, can turn a potentially negative experience into one that builds trust and loyalty. A smooth, well-explained and human-centred claims journey reinforces the true value of insurance and the indispensable role of the intermediary.
Keeping the economy running
Insurance penetration and claims pay-outs are closely correlated with economic stability, employment and business continuity. Brokers sit at the centre of that value chain by translating complex risks into practical, fit-for-purpose cover for clients. In the commercial segment, where balance sheets are exposed to business interruption, cyber incidents, supply chain disruption and liability claims, professional risk advice and the right product configuration can determine whether a loss is survivable or signals the end of a business.
Over time, insurers and brokers who manage claims professionally are better positioned to retain clients, attract new business and demonstrate their broader contribution to the economy’s resilience.