We talk to Justin Faure, Baron of Builders, King Price Engineering about the direct insurer’s venture into the engineering underwriting world.
COVER: Let’s start off by discussing King Price and brokers. Most people know King Price as a direct insurer. Where do you fit in?
Justin: When we started 9 years ago, we launched into the direct space. However, since then, we’ve built a thriving book in the commercial space, where we insure business, community, Agri and Engineering risks.
Engineering is a very specialised field, and the associated risks are unlike those found in other industries. Because specialised brokers are equipped to handle the type of cover required by an engineering business, we offer cover to suit their clients’ unique needs.
We don’t see brokers as just a link between us and our clients, we see them as our partners. We’re in this together because our main goal is to ensure our commercial and engineering clients are adequately covered.
When it comes to brokers, we not only focus on providing the backup and value they need, but we also work to build relationships that go far beyond numbers. We partner with brokers to give them, and their clients, the very best service possible.
Through our supporting insurance brokers, we’re seeing substantial growth in our commercial and engineering books. We’ve targeted broker business as a key growth segment as we look to continue our exponential rise in the local market.
COVER: Why Engineering Insurance?
Justin: Businesses and industries are becoming more proactive when it comes to managing risks of all shapes and sizes, particularly in the construction and engineering sectors. History has been a cruel teacher, doling out some harsh risk management lessons to these business owners.
As a result, the demand for flexible and comprehensive insurance grew. When covered by the king, brokers can offer their client the opportunity to choose the cover they want which means they don’t ever have to pay for cover they don’t need.
In an effort to create opportunities in the construction industry, South Africa has announced a refocus on infrastructure expenditure to stimulate the economy. This shift in the industry is expected to record a compound annual growth rate of 13.2% forecasted to reach R2.86 billion by 2024. With these kinds of projections, our ability to offer flexibility provides essential support for the country’s development goals.
We’re proud to offer an affordable product that protects engineering businesses against risks encountered during contract implementation and execution, as well as associated liabilities.
COVER: What underwriting skills do you have available to assist brokers?
Justin: Between our dedicated engineering team members, we’ve got more than 50 years of insurance experience specialising in the engineering and construction sectors. That’s an abundance of knowledge that brokers and their clients can tap into. The combination of this experience delivers in-depth knowledge matched with impeccable support and guidance.
Our 15% shareholding by Germany-based global reinsurance giant Munich RE gives us the financial leverage to write bigger risks in the commercial space and give the market peace of mind that we’ll be able to pay any potential claims.
We’re constantly aiming to offer the very best underwriting solutions with unrivalled personal service to brokers and their clients so that we’re their first choice.
COVER: Where do you see the opportunities for brokers and King Price?
Justin: We know that there’s no 1-size-fits all solution when it comes to managing engineering risks. As we continue to expand our reach and product, brokers will be able to tap into and benefit from our great offerings, royally good service, and seriously affordable prices.
This will offer brokers the opportunity to increase their own market share in the engineering space. As we grow and increase our offerings, our broker partners will be able to do the same.
We make it our business to get to know our broker partners, their clients, and their clients’ businesses, so that they can rely on us for exceptional personal service and successful partnerships.