I have always found engineering insurance to be a very interesting segment, mainly because it is a complicated sector, yet the industry is seeing good growth. Fergus Mc Namara, Managing Director at FDM Engineering Underwriting Managers, agreed to discuss the topic with me.
We looked at the growth opportunities within the realm of engineering insurance, particularly within the SME (Small and Medium Enterprises) sector. With over 30 years of experience in the insurance industry, Fergus sheds light on the history of FDM, the intricacies of engineering insurance, and the indispensable role of brokers in navigating this landscape.
FDM Engineering Underwriting Managers was born out of an opportunity spotted by Fergus when Renasa was seeking an engineering underwriter. Founded in September 2004, FDM has since grown to be a reputable name in the industry, boasting a diverse portfolio covering various aspects of engineering risks. Fergus attributes their success to a dedicated team of 25 staff and a commitment to profitability, a feat achieved consistently over their 20-year journey.
Renasa has always been the broker’s best friend.
Our entire business focus is exclusively on helping our intermediaries outcompete their competitors.
Now, as part of TIH, South Africa’s powerful insurance group, we commit to do even more for our brokers.
In the conversation, Fergus emphasises the broad spectrum of engineering policies offered by FDM, ranging from contractors’ all-risk policies to plant electronics and works damage coverages. The company’s ability to adapt and tailor policies to meet the specific needs of clients sets them apart in the market, with a focus on providing comprehensive coverage and exceptional service.
One of the key takeaways from the conversation is the immense potential for growth within the SME sector. Fergus highlights the influx of new entrants, particularly in the solar business, as well as the government’s efforts to stimulate growth through initiatives like public-private partnerships (PPP). This presents a significant opportunity for brokers willing to tap into this market, with FDM witnessing notable growth driven by smaller brokers serving SME clients.
However, amidst the optimism, Fergus raises concerns about the future availability of skilled engineers. Despite the presence of reputable universities, there remains a shortage of engineers entering the workforce. This shortage could potentially hinder the sector’s ability to capitalise on the opportunities presented by infrastructure development and technological advancements.
Renasa has always been the broker’s best friend.
Renasa no longer does procurement in isolation. Now, as part of a big group, our procurement clout means even lower costs of claims and, consequently, even more competitive premiums.
Now, as part of TIH, South Africa’s powerful insurance group, we commit to do even more for our brokers.
Renasa is a licensed non-life insurer and FSP. Telesure Investment Holdings (Pty) Ltd. All Rights Reserved. TIH is a licensed controlling company.
In navigating the complexities of engineering insurance, Fergus underscores the importance of technical expertise and industry knowledge. Underwriters must possess a keen understanding of construction processes, contractual obligations, and risk assessment methodologies. Moreover, they must possess strong negotiation skills and a service-oriented mindset to effectively engage with clients and brokers.
For brokers eyeing growth in this segment, Fergus emphasises the need for a strong partnership with underwriters who offer comprehensive training and support. Brokers must equip themselves with the necessary knowledge and skills to effectively assess client needs and provide tailored solutions. Moreover, they should seek underwriters who prioritise service excellence and offer innovative products that meet the evolving needs of clients.
Fergus suggested that, by fostering strong partnerships, embracing innovation, and addressing skill shortages, brokers can unlock the full potential of this dynamic market and drive sustainable growth for years to come.