Gareth Beaver, the CEO of Santam Specialist Insurance, in conversation with Tony from COVER, at the AIE 2024 conference.
This conversation provides readers with deeper insights into the evolving strategy of Santam Specialist Insurance, a division of Santam. Gareth shared his thoughts on the importance of industry events, the strategic direction of Santam Specialist Insurance, and the opportunities on the African continent.
Gareth began by emphasising the significance of events like AIE 2024 for the insurance industry. These gatherings offer a rare opportunity for industry professionals to network, reconnect, and engage in meaningful conversations. It’s a fantastic opportunity to network, catch up with old friends, and connect with people who have been doing a great job in this special industry of ours.
Such events are particularly valuable because, as Gareth pointed out, the busy nature of professional life often leaves little room for networking outside of formal business settings. The concentrated environment of a conference allows for more in-depth discussions and the forging of stronger relationships, both of which are crucial in an industry that relies heavily on trust and collaboration.
Santam’s Strategic Evolution in Specialist Insurance – We then moved on to the core of Santam Specialist Insurance’s strategy. Gareth explained that many of the specialist insurance businesses under the Santam umbrella have deep roots, often dating back 40 years or more. These businesses were initially founded by entrepreneurial individuals with a strong focus on niche markets such as marine, aviation, and liability insurance.
Over time, as these businesses grew and their founders looked to monetise their investments, Santam naturally became the primary purchaser of these shares, consolidating its position as the leading player in South Africa’s specialist insurance market. Gareth pointed out that this consolidation makes sense from a business perspective and in brand strength.
“We all understand the value of a brand,” Gareth said, comparing Santam to global giants like Coca-Cola and Mercedes-Benz. He explained that in the insurance industry, especially in specialist sectors, customers value the credibility and reputation of a strong brand. By consolidating these various specialist brands under the Santam umbrella, the company can offer a more cohesive and recognisable identity to its customers.
This strategy also offers practical benefits. For example, at industry events like AIE 2024, instead of presenting multiple fragmented brands, Santam can showcase its comprehensive range of specialist products under one unified banner. This not only reduces costs but also strengthens the overall impact of the Santam brand in the marketplace.
Congratulations to all
the brokers who were recognised at the 2024
Santam Broker Awards!
Your deep expertise helps our mutual clients make better decisions about risk every day, and we celebrate not just the winners but all of you.
Santam is an authorised financial services provider (FSP 3416),
a licensed non-life insurer and controlling company for its group companies.
Gareth also discussed how Santam engages with brokers, a critical component of its business strategy. He explained that within large global brokers, specialist teams often mirror Santam’s own specialist divisions. These teams prefer to interact directly with their counterparts at Santam, allowing for more focused and effective collaboration.
However, not all brokers operate with such specialisation. Mid-market commercial brokers, for example, may not have the same level of internal specialisation and might prefer a single point of contact within Santam. To accommodate these varying needs, Santam has adopted a flexible approach. They’ve recently appointed Shazzy Taylor as the head of broker market engagement and development, ensuring that brokers have a clear and efficient entry point into the specialist teams at Santam.
This dual approach—offering both specialised direct contacts and a more generalised entry point—allows Santam to effectively cater to the diverse needs of brokers, enhancing their ability to serve clients and build stronger relationships across the board.
Expanding into Africa and Beyond – Turning to Santam’s growth strategy, particularly in Africa, Gareth revealed that approximately 20% of Santam Specialist Insurance’s business currently comes from outside South Africa. The company has a strong presence in key markets across the African continent, particularly in sectors like engineering, corporate assets, liability, and marine insurance.
Santam’s longer-term goal is to increase the proportion of business sourced from outside South Africa to 50% within the next five years. This ambitious target includes not only expanding across Africa but also tapping into selected international markets in the Middle East, Southeast Asia, India, and China.
Gareth highlighted Africa’s unique growth potential, noting that the continent is experiencing a significant population boom, which is driving demand for infrastructure and development projects. “Africa is the one continent that is growing in terms of population, and as economies develop from emerging to more sophisticated, there is a huge opportunity,” he explained.
Santam is well-positioned to capitalise on this growth, particularly through its alliance with Sanlam. The merger has created what Gareth described as the largest, most well-branded insurance platform on the African continent. This strategic positioning allows Santam to play a crucial role in supporting the continent’s development, particularly in sectors like infrastructure, agriculture, and natural resources.
I ended the conversation by asking Gareth to touch on the importance of a strong regulatory environment in Africa. He noted that as regulatory frameworks across the continent become more formalised and robust, the insurance and financial industries are also becoming more professional. This, in turn, makes it easier and safer to do business in these markets, further enhancing the opportunities for growth. Gareth summed it up, “Africa is a big, important continent for the world, and we are well-positioned to connect with the trade that’s happening in those markets.”
Clearly, by consolidating its specialist businesses and expanding aggressively into Africa and other international markets, Santam is positioning itself as a leader in the global insurance industry.