The South African insurance industry has always evolved alongside the needs of its customers, and few parts of the market demonstrate that adaptability quite like underwriting management agencies (UMAs). Built around specialist knowledge, entrepreneurial thinking and a close understanding of niche risks, UMAs are an important and valued part of the insurance ecosystem.
As risks become more complex and clients increasingly expect tailored solutions, the ability to move quickly and think differently has never been more valuable. UMAs have earned a reputation for doing exactly that, bringing deep expertise, product innovation and agility to areas where standard approaches may not always fit the brief.
For brokers, insurers and clients alike, the UMA model has created opportunities to deliver more specialised products and stronger service experiences. It has also shown a remarkable ability to evolve alongside changing market needs.
We put some questions to three industry practitioners – Wilhelm von la Chevallerie, chairperson of SAUMA; Elmé Strauss, Head of Partnerships at Lombard Insurance; and Simon Dougall, CEO of Crawford Dougall Insurance Brokers – asking them to share their perspectives on the role UMAs continue to play in South Africa, and why specialist underwriting remains such a powerful force within the industry.
Q&A WITH WILHELM VON LA CHEVALLERIE, CHAIRPERSON OF SAUMA
How would you define the role of underwriting management agencies within the South African insurance landscape today, and how has that role evolved over the past few years?
UMAs remain at the forefront of providing insurance solutions to niche market segments and to customers whose needs are constantly changing. Innovation, agility and the ability to react quickly are therefore synonymous with the UMA approach to solving insurance challenges.
Insurers often support UMAs because they provide increased return on investment through specialised service, market reach, underwriting expertise and claims management capabilities that many traditional insurers may struggle to replicate at the same level.
The role of the UMA has also evolved over time. Many years ago, entirely new lines of business were serviced almost exclusively by UMAs. Today, some of those lines are no longer considered new, while insurers themselves have also entered these spaces with competing offerings. Despite this, UMAs remain the more agile operators.
Many UMAs are owner-managed businesses, which creates a particularly strong alignment between leadership, customers and insurer partners. Decision-makers are deeply involved in the business and dedicated to both the success of the organisation and the needs of policyholders. That passion is reflected across multiple customer touchpoints.
UMAs are also fully committed to working closely with brokers who recognise how the broker-UMA partnership can deliver exceptional products and service to shared clients.
UMAs are often seen as specialists and innovators. Where do you believe they add the most value to the broader insurance ecosystem, particularly in areas like niche underwriting, speed to market and product development?
UMAs add value through their expertise in niche underwriting areas, their ability to make decisions quickly and their responsiveness when product enhancements are needed.
In many instances, UMAs are more driven to find practical insurance solutions where traditional insurance products do not fully cater for the needs of the insured. Their specialist focus and entrepreneurial mindset often allow them to respond more effectively to emerging risks and evolving client expectations.
This agility enables UMAs to bring products to market quickly and refine offerings efficiently, while still maintaining close relationships with brokers and insurer partners.
What are the biggest misconceptions about UMAs from insurers, brokers or regulators, and how is SAUMA working to address these?
One of the biggest misconceptions is that UMAs are purely profit-driven underwriters focused on rejecting claims in order to improve profitability. While I cannot speak for every UMA in the market, SAUMA members subscribe to a strict code of conduct that holds them to a higher standard.
SAUMA is not a regulator, but we aim to ensure that our members are viewed by brokers, insurers and policyholders as trustworthy and professional businesses that align with principles such as Treating Customers Fairly (TCF). An UMA that repeatedly rejects valid claims would quickly damage its reputation and lose customers.
SAUMA recently updated its code of conduct, with members subscribing to enhanced standards that reinforce the right behaviours and strengthen trust in the market.
Another misconception is that UMAs are simply brokers sharing in underwriting profits. That is fundamentally incorrect. UMAs are agents of the insurer, which is the risk-taking entity. Brokers remain agents of the policyholder. Both are essential parts of the insurance value chain, but their roles are distinct.
While some brokers may fulfil binder functions on behalf of insurers – and many do this exceptionally well – they ultimately remain representatives of the policyholder.
There is also a tendency to view UMAs merely as product innovators and distributors. In reality, fully-fledged UMAs fulfil a far broader role. They not only design and distribute products, but also underwrite and manage portfolios, oversee claims from notification through to payment, understand capital implications and engage with complex reinsurance structures.
SAUMA continues to engage with industry stakeholders to improve understanding of these distinctions and regularly provides training and development opportunities for members to deepen technical expertise and collaboration with insurers.
Looking ahead, what are the key opportunities and risks for UMAs in South Africa, especially in the context of regulation, technology and changing client expectations?
Technology presents both enormous opportunities and significant risks for UMAs.
Artificial intelligence, automation, system integration and improved interfacing all create opportunities for UMAs to operate faster, more efficiently and more cost-effectively. Technology is also enabling increasingly sophisticated and user-friendly portals that improve service delivery.
At the same time, these developments introduce risks, particularly in the area of cybercrime, where increasingly advanced technologies are enabling more sophisticated attacks.
Technology is also reshaping distribution models. Digital platforms and self-service capabilities could place pressure on traditional intermediary channels that many UMAs currently rely on.
From a regulatory perspective, the environment continues to evolve, although we do not necessarily view regulation as a threat. The current framework allows UMAs to provide meaningful value to the insurance industry and to policyholders.
Should the regulatory landscape shift further through initiatives such as the Conduct of Financial Institutions (COFI) Bill, the industry will need to assess the implications carefully. We understand what regulators are trying to achieve and trust that any future changes will aim to protect policyholders while ensuring transparency and continued access to quality insurance solutions.
UMAs remain well positioned to provide innovative solutions to South African insurance buyers. We have navigated significant change over many years and continue to adapt successfully. Internationally, recent research into the UK MGA market has shown strong growth over the past five years, driven by many of the same competitive advantages that UMAs in South Africa offer today. It is encouraging to see global markets increasingly recognising the value that specialist underwriting businesses bring to the insurance ecosystem.
Q&A WITH ELMÉ STRAUSS, HEAD OF PARTNERSHIPS, LOMBARD INSURANCE
From an insurer’s perspective, what role do UMAs play in your distribution and underwriting strategy?
Our distribution and underwriting strategy is anchored by three core principles: culture and values, alignment of interests and complementary capabilities. We do not view underwriting management agencies (UMAs) as mere intermediaries. They are strategic partners who sit at the forefront of our market presence and often provide access to specialised markets, deep technical expertise and highly focused client relationships.
Because we prioritise brand-led distribution, we take a partner-first approach, actively supporting the UMA’s brand and market identity. In many instances, UMAs have built strong reputations within particular niches or industries, and we recognise the value of preserving and strengthening those relationships rather than overshadowing them.
This partnership model is underpinned by a shared commitment to delivering client value and achieving sustained profitability. By backing market-leading UMAs with specialised skill sets, we ensure that our combined underwriting strategy is executed with precision, transparency and high-level technical expertise.
UMAs also bring an entrepreneurial mindset and agility that can be difficult to replicate within larger corporate structures. They are often closer to the customer, quicker to identify emerging risks and more responsive when market conditions shift. That responsiveness adds significant value to both distribution and underwriting performance.
Importantly, the relationship works best when there is genuine alignment between insurer and UMA. It cannot simply be transactional. There needs to be a shared understanding of risk appetite, service philosophy and long-term objectives. When those elements come together, the partnership becomes highly effective and sustainable.
What makes a strong UMA partner, and what do you look for when deciding to delegate underwriting authority?
The cornerstone of a strong UMA partnership is a shared value system. Technical skill is essential, but the longevity and success of the relationship ultimately depend on trust, transparency and consistency in how business is conducted.
When values are aligned, it creates a foundation for open and constructive dialogue. This allows both parties to navigate challenges collaboratively and make decisions with confidence, even during more complex market cycles or claims environments.
When delegating underwriting authority, we look for best-in-class experts who demonstrate a proven track record in their specific niche. Specialisation matters. We want partners who deeply understand their market, who can assess risk effectively and who have built credibility with brokers and clients alike.
We also look carefully at governance structures, operational capability and data quality. A strong UMA should be able to demonstrate disciplined underwriting practices, sound portfolio management and a commitment to ongoing reporting and transparency.
Consistency is another critical factor. We value partners who show consistency in decision-making, business conduct and commitment to quality risk selection. Ultimately, delegated authority is built on confidence, and confidence is earned over time through performance, professionalism and integrity.
Where do you see the balance between control and autonomy sitting in UMA relationships, particularly around governance, data and risk management?
We view this balance as a collaborative partnership rather than a traditional oversight model. Our philosophy is rooted in complementary capabilities. We empower our UMAs with autonomy in areas where they add the most value, while maintaining clear and rigorous standards for governance, accountability and reporting.
A successful UMA relationship depends on both parties understanding their respective roles and responsibilities. The insurer should not unnecessarily duplicate capabilities that already exist within the UMA, particularly where the UMA has specialist expertise and operational strength. At the same time, there must be clear frameworks in place to ensure appropriate oversight and alignment.
Data transparency is central to that relationship. Access to accurate, timely and meaningful data enables informed decision-making and allows both insurer and UMA to proactively manage performance, emerging trends and portfolio risks.
Defined risk parameters are equally important. These parameters create clarity and consistency while still allowing the UMA the freedom to operate entrepreneurially and respond quickly to market opportunities.
Ultimately, the goal is to strike a balance where governance supports innovation rather than restricting it. When the partnership is built correctly, autonomy and accountability can coexist very effectively.
How do you see the role of UMAs evolving in the next few years, especially as insurers invest more in digital capabilities and direct channels?
The evolution of the UMA model will increasingly be defined by the shift from pure risk transfer towards risk prevention and proactive risk management. As artificial intelligence, automation and data analytics continue to reshape the insurance landscape, UMAs will need the technological maturity to integrate these capabilities into their operating models.
We expect the role of UMAs to evolve in several important ways over the next few years.
The first is around data intelligence. UMAs will increasingly leverage granular data to provide proactive risk mitigation insights for clients rather than simply responding once losses occur. This will create opportunities for more tailored underwriting, improved pricing accuracy and stronger client engagement.
The second is technological agility. Clients and brokers increasingly expect seamless digital experiences, faster turnaround times and real-time responsiveness. UMAs that successfully adopt digital tools while maintaining the human expertise and relationship-driven nature of specialist underwriting will remain highly competitive.
The third is client-centric flexibility. The risk environment is changing rapidly, whether through cyber threats, climate-related risks, evolving liability exposures or entirely new industries emerging. UMAs have historically been effective at identifying and responding to changing market needs, and that adaptability will remain one of their greatest strengths.
At the same time, the rise of direct channels and increased digitalisation will challenge all participants in the insurance value chain to clearly articulate where they add value. For UMAs, that value will continue to lie in specialist expertise, agility, strong broker relationships and the ability to deliver tailored solutions in complex or underserved markets.
At Lombard, we believe the UMA model remains highly relevant and well positioned for the future, particularly for businesses that are prepared to continue investing in technology, governance and specialist capability.
Q&A WITH SIMON DOUGALL, CEO, CRAWFORD DOUGALL INSURANCE BROKERS
How do UMAs fit into your day-to-day work as a broker, and where do they add the most value compared to traditional insurers?
As specialist brokers, we focus on certain industries, categories and niche areas. UMAs serve us well in that context because they provide the tailored underwriting expertise that we require. We utilise UMAs a lot in our day-to-day function, precisely because of their niche expertise and their specialist areas of focus. They complement our work by delivering a depth of knowledge that a general insurer simply cannot match in the areas where we operate.
What makes this particularly valuable is that our clients come to us expecting specialist advice – they’re not looking for off-the-shelf solutions. When we engage with a UMA that truly understands the sector we’re placing into, it reinforces the value we bring as a broker. The relationship becomes genuinely collaborative, with both parties working toward the best possible outcome for the client rather than simply processing a transaction.
In your experience, what differentiates a good UMA from an average one in terms of service, underwriting approach and claims support?
A good UMA takes the time to truly understand each specific client’s needs; they don’t apply a blanket approach. In hospitality, for example, they wouldn’t assume that because two clients are similar in size, they carry the same risk profile. They’re willing to niche down and tailor products for each individual client.
A key differentiator is their ability to offer bespoke levels of coverage, tailoring policy wordings and policy schedules in a way that would be quite difficult to achieve with a general insurer. This extends beyond simply adjusting limits or excesses. It’s about crafting language that genuinely reflects the nature of the risk and leaves no ambiguity when a claim arises.
On the claims side, a good UMA will have value-added claims support with specialist assessors on their panel who genuinely understand the niche they’re operating in. You’re not getting a generalist assessor or a generalist claims handler; you’re getting someone who truly understands the specific underwriting offering being provided. That distinction matters enormously when a client is in a difficult situation and needs swift, informed support.
How do UMAs help you serve clients with more complex or niche risks that may not be well catered for in the standard market?
The fundamental difference between UMAs and more traditional underwriters is the focus on specialist areas and the underwriting capability that comes with it. Take corporate property, for example. A UMA operating in that space will only participate in corporate property risks. They understand that environment extremely well and participate as a follow-market capacity provider on those risks.
The same applies to other niche areas in which we operate. A hospitality UMA will understand the hospitality environment better than anyone else. They’ll appreciate the nuances, for instance, the very different risk profile of a client facing a medical emergency in the middle of the Masai Mara versus a guest at a hotel in Sandton with hospitals close by. That depth of contextual understanding is really critical for us to be able to provide the best possible cover and insurance solutions for our clients.
It also means that when we sit across the table from a client and explain why their policy is structured a certain way, we can do so with complete confidence. We’re not guessing. We’re drawing on the insights of underwriters who live and breathe that particular risk category every day.
It’s also worth noting that the reinsurance capacity provided to UMAs is specialist in nature, aligned specifically to their underwriting capability. This means that in certain instances, you may actually be able to achieve greater capacity through a UMA than you would in the standard market, simply because of the way their reinsurance treaties are structured.
What would you like to see UMAs improve on to better support brokers and their clients going forward?
It’s quite a tricky one to answer because no two UMAs are the same. Some provide unbelievable support, and we have amazing relationships with UMAs who support us wonderfully right through the full life cycle of a client’s insurance journey.
If there is one area for improvement, it would be around capacity – specifically, the ability to secure additional reinsurance support that would allow them to deploy greater capacity into local markets within their areas of niche expertise. The South African market has its own complexities, and UMAs that can grow their capacity footprint here, while retaining that specialist focus, will be incredibly well positioned. That would go a long way in strengthening what is already, in many cases, an excellent offering.