By Chris Grieve, Executive Head: Broker Distribution at Bryte Insurance
Unprecedented times – load shedding – riots – crime – corruption – floods – fires
The impact that insurance brokers and advisers can have on business continuity has increased dramatically over the course of the last few years. The challenges have been numerous and interconnected, from the COVID-19 pandemic, persistently high inflation, extreme weather and climate change, and the challenges presented by ongoing and escalating load shedding and potential water shedding, as well as business continuity challenges precipitated by frequent global supply chain disruptions. These conditions mean that business survival is far from a foregone conclusion in 2023 and beyond, and clients need an expert to give advice, coupled with a financially strong insurer.
As trusted intermediaries, it is critical for brokers and insurance advisers to understand the evolving risk landscape to best advise clients on varying conditions that could affect the risks they face. Not all risks can be predicted, but many can be anticipated, and intermediaries should engage with clients to prudently manage these risks. With underinsurance being a chronic issue, it is also crucial that brokers ensure that their clients are adequately insured, understand precisely what their policy covers, and are aware of the applicable limits and deductibles and other covers that may be available in the market, at an additional cost.
Brokers and advisers remain uniquely placed to help guide and drive investment in scenario planning and assessing strategy resilience to build more robust businesses. Our qualified risk engineers at Bryte are also on call to assist with risk mitigation and solutions that will help reduce risk. They are there to support brokers and clients. Brokers must ensure that policyholders understand risks effectively and that complete disclosure is provided at every stage of the process. It is critical that policies are accurately underwritten, and that cover and policy limits continue to be reviewed and communicated. This is vital in avoiding a scenario in which policyholders face the risk of having claims rejected. Navigating the risk landscape requires partnering with experts with deep insight, foresight and a pragmatic approach to resilience. The broker’s record of advice is becoming increasingly important when it comes to disputes.
Tapping into technology to unlock value realisation for clients
Like virtually every other industry, insurers have undergone a digital transformation journey to enhance their business processes. Digital transformation enables insurers to achieve quicker turnaround times on claims and gain substantial timesaving on routine tasks.
The road to business success is lengthy.
Choose an insurance partner that’s with you for the long haul.
Insure your business with Bryte. Visit bryteinsure/co.za or contact your broker.
Bryte Insurance Company Limited is a licensed insurer and an authorised FSP (17703)
But are insurers really getting the most out of their digital investments? In 2023, insurers should work to ensure technology produces tangible benefits for customers. For instance, digitisation should enable the business to better cater to evolving client needs and provide a higher degree of personalisation for each client. And the use of chatbots for 24/7 customer engagement via social media and AI for predictive analytics in insurance is already with us.
Better risk management through predictive analytics and machine learning directly impact claims expenses. By effectively leveraging predictive analytics, insurers can realise superior returns as, in the long run, this will help control costs and the price of insurance to the public.
Ultimately, insurers exist to allow business owners and managers to achieve their business ambitions, confident in the knowledge that the consequences of an adverse event can be mitigated. Insurance offers a degree of certainty by safeguarding assets and providing protection for people’s livelihoods. Insurance brokers and advisers must capitalise on their trusted status to become a partner with their clients, enabling customers to invest more sustainably in their operations and help ensure long-term sustainability and growth.
Looming right now are insurance price increases between 15% and 40%. Brokers must be prepared to explain the reasons behind the substantial price increases to clients. High inflation on top of this does not make it an easy task for the broker. Over and above this, the broker needs to understand and explain the policy wording restrictions and changes – all of which is onerous on the broker, and this is where strong expert advice is required.