Tony Van Niekerk, COVER
The insurance industry is no stranger to complexity. With brokers, insurers, and policyholders all playing interconnected roles, the task of managing premium collections has historically been labor-intensive, prone to risks, and administratively burdensome. Enter Fulcrum’s AirCollect model—a groundbreaking solution aimed at transforming the premium collection landscape.
In a recent discussion with me, Jade Jensen, Managing Director of Fulcrum Collections South Africa, and Dave Stevens, Chief Technology Officer Fulcrum Group, shared insights into how Fulcrum AirCollect(tm) is setting new standards for efficiency and risk management in the industry.
The Role of Brokers and Insurers in Premium Collection – Premium collection sits at the heart of the insurance industry. As Jade explains, “Our whole business is based on broker interaction. Brokers are the primary point of contact with policyholders—they sign the mandates, advise, sell the policies, and work with their chosen broker management systems (BMS) to produce the debit order files that are sent to Fulcrum.”
Previously, premium collection processes often meant funds would sit off insurers’ balance sheets, a setup that posed financial risks. Insurers were left eager to secure a safer method for premium handling—a need that Fulcrum was well-positioned to address. By shifting premium collection into insurer-owned accounts, Fulcrum’s AirCollect model mitigates these risks, placing funds directly into the insurers’ bank accounts, in a manner that also respects brokers’ workflows.
Simplifying Complexity – AirCollect was designed with a primary goal: to simplify premium collections and streamline operations for all parties involved. The model consolidates collections, combining multiple policy payments into a single debit. This results in easier monthly reconciliations for brokers, reduces manual intervention, and ultimately minimises administrative burdens and errors.
Jade highlights the simplicity AirCollect brings to brokers: “The AirCollect model is a lot more streamlined. It’s designed to make the broker’s life easier…they only have to submit one file every month that contains everything we need to disperse funds accurately.” By collecting everything within a single transaction, the model also eliminates the need for brokers to manage multiple codes and reconciliations for each insurer they work with, making monthly processes significantly more efficient.
How Technology Drives Efficiency – Dave Stevens offers a technical look at AirCollect’s inner workings, emphasising that while the technology might seem simple, the results are transformative. “The technology side of it is actually quite simple… The design and the collection model that Fulcrum has introduced—that’s where the magic really happens,” he explains. Fulcrum’s integration with Capitec Bank (formerly Mercantile Bank) allows for seamless, automated processing of premium collections and disbursements. When a broker submits a collection file, Fulcrum’s system validates the data, sends instructions to Capitec, and splits the payments as needed between insurers, brokers, and VAP providers.
Moreover, Fulcrum has taken integration with Broker Management Systems (BMS) seriously. For the process to be effective, Fulcrum must integrate with brokers’ management systems, enabling them to work within their existing environments. This integration minimises disruption to brokers’ current operations while optimising premium collections. “Before we can onboard a broker onto the AirCollect model, we need to make sure we have integrated with whichever broker management system they use… It’s not a complex piece of work, but crucial to get it correct.,” says Dave.
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The Industry Impact of AirCollect – AirCollect’s impact extends beyond just operational efficiency—it significantly reduces risk for insurers. Traditionally, funds collected by brokers would sit in Fulcrum-owned accounts for up to 45 days, posing risks that insurers needed to manage. AirCollect addresses these concerns by collecting premiums directly into insurer-owned accounts, thereby ensuring they retain control over their funds. This setup provides insurers with a transparent view of cash flows and mitigates the risk of financial exposure. The AirCollect model can also manage deposits, which CollectDirect could not, derisking the insurer entirely.
Additionally, brokers benefit from a streamlined experience. As Jade notes, “We have a lot of brokers who currently use the CollectDirect model and are accustomed to that setup. However, the AirCollect model is a lot more streamlined… so we’re having a real-time transfer of data between broker management systems and Fulcrum.” With this real-time integration, brokers no longer need to manually upload files; instead, they have access to an automated, seamless premium collection process.
Onboarding and Future Rollout Plans – Although AirCollect is in its early stages, Fulcrum’s rollout strategy is well underway. Currently, the model is operational with a select group of brokers, with plans to onboard more in the coming year. “At the moment, we’ve only got four brokers running live on AirCollect, but we’re planning to ramp that up early next year. As we roll out, confidence will ramp up, and everyone’s success story will just add on,” Jade says.
Fulcrum’s goal is to integrate AirCollect with all broker management systems in South Africa, making it a widely accessible solution. The initial rollout phase has focused on integrating Cardinal’s C360 and Integrity Software’s BMS platforms, with plans to bring on more systems in the near future.
The introduction of Fulcrum’s AirCollect model represents a major advancement in the premium collection landscape, addressing long-standing industry challenges while simplifying processes for brokers and insurers alike. By reducing financial risks, minimising administrative burdens, and streamlining monthly reconciliations, AirCollect positions Fulcrum at the forefront of industry innovation.
For brokers, insurers, and policyholders, AirCollect’s impact is clear—it’s making premium collection easier, safer, and more efficient. As Jade puts it, “We’re excited by how far we’ve come… this is a new space for Fulcrum, and I think the success we’ve seen so far is just the beginning.”
With plans for further expansion, Fulcrum’s AirCollect model is well on its way to becoming the standard for premium collections across the insurance industry, offering a valuable solution that simplifies complexity and drives efficiency for all involved.