Tony van Niekerk in coversation with Darryl Grater, Chief Growth Officer at Discovery Insure and Vitality Drive International
In a rapidly shifting insurance landscape, intermediaries are facing a dual challenge: keeping pace with technological transformation while deepening their role as risk advisors.
In a recent conversation with Darryl Grater, Chief Growth Officer at Discovery Insure and Vitality Drive International, we unpacked the complex realities facing brokers and how the industry is adapting. Grater, who will be attending the upcoming insurance conference in Sun City, shared that, while the insurance environment is evolving quickly, one thing remains clear: brokers are still central to the South African insurance model, particularly in complex personal lines and commercial segments. However, the role of the broker is no longer just about product placement, it’s now about insight, technology, and proactive risk management.
“There’s a dual shift happening,” said Grater. “We’re seeing the rise of digital direct channels, even via intermediaries, along with the growth of embedded insurance platforms and aggregators.”
Despite the noise around disintermediation, Grater believes that brokers who invest in client-centric models, specialisation, and digital enablement are not only surviving, but thriving. The brokers seeing the strongest performance today are those leveraging data insights, process automation, and embracing technology, once the exclusive domain of insurers and reinsurers.
Levelling the playing field – The rise in regulatory complexity, driven by frameworks like RDR, COFI, and revisions to the FAIS Act, has increased administrative burdens for intermediaries. Coupled with tighter margins and rising client expectations for personalised service, brokers are under pressure.
“Compliance remains a significant challenge,” said Grater. “For smaller brokers, the cost of investing in technology can be prohibitive.”
This is where insurer-broker partnerships become crucial. Discovery Insure, for example, provides its broker community with access to enterprise-grade digital infrastructure, including automated quoting, digital onboarding, and integrated compliance support, free of charge. Their Advisor360 platform spans Discovery’s product suites and helps both small and large brokers improve productivity and focus on their core advisory roles.
Larger brokers, Grater notes, are starting to invest more in CRM platforms and compliance automation, though the pace of tech evolution means even these systems require constant updates to remain relevant. For many, piggybacking on insurer platforms may prove more efficient than building their own.
AI and the future of compliance – Looking ahead, Grater sees artificial intelligence playing a growing role in the broker environment, especially in compliance monitoring and advice support. Discovery is already investing heavily in AI-driven tools that will be integrated into broker platforms, enhancing their ability to manage risk and deliver personalised service.
“These tools will provide real value, reducing risk and enabling service differentiation in a competitive marketplace,” said Grater.
Risk management as core competency – One of the most significant shifts in the broker’s role is the move towards risk advisory and survey capabilities, especially in the commercial and corporate sectors. Brokers can no longer rely on the insurer to manage all aspects of risk.
“Gone are the days of copy-paste policies,” said Grater. “Brokers today are expected to deliver comprehensive risk advice, understand behavioural and operational risks, and work collaboratively with underwriters to co-create tailored solutions.”
This proactive approach leads to better underwriting outcomes, lower claims frequency, and ultimately builds trust and loyalty with clients. It also strengthens the broker-insurer relationship, creating a shared ecosystem of insight, data, and risk mitigation.
Insurers too have shifted. No longer simply underwriters of risk, they are now data partners, expected to provide granular risk insights and proactively engage in loss prevention strategies. Discovery Insure’s investments in actuarial science, AI, and risk data are used not only to price policies but also to identify opportunities to rehabilitate risk and potentially reduce premiums.
Personal vs commercial lines – On the question of whether brokers are focusing more on commercial lines, Grater explained that it depends on the structure of the advisory practice. Some are specialists in short-term insurance across personal and commercial, while others offer holistic financial services, combining wealth, life, investments, and fiduciary solutions.
Discovery Insure, for instance, has purposefully chosen to focus on the personal lines market. This decision was driven by capital allocation priorities and has yielded strong returns, with plans to expand into sub-categories within the personal lines space.
That said, commercial lines remain a critical revenue stream for many brokers, sometimes accounting for 70% of income despite representing only a third of their client base. The dynamics vary, but what’s consistent is the need for insurers to offer product differentiation, enablement tools, and trusted partnerships.
The broker’s future as a trusted advisor and tech-enabled specialist – Grater’s insights affirm a key truth: the broker is far from obsolete. In fact, in an environment marked by heightened risk, complex regulation, and increasing client expectations, brokers have never been more important. But the winning brokers will be those who evolve, who deepen their advisory capabilities, embrace insurer tech platforms, and use risk insights to strengthen their client value proposition.
“Ultimately, it’s about collaboration,” said Grater. “Brokers, insurers, clients, we’re all part of the same ecosystem. The future belongs to those who embrace that and innovate together.”
With Discovery Insure leading the charge in enabling intermediaries with smart tools and insights, it’s clear that the future of broking is not only secure, but also transformative.