Robert Atwell, Executive Head, Discovery Insure
As we gathered at the Insurance Institute conference in Sun City, it was clear that the insurance industry is at a crossroads. The discussions there have centered around the evolving risk environment and the increasing importance of robust risk management strategies. At Discovery Insure, we have been closely monitoring these changes and are adapting our approaches to ensure we continue to meet the needs of our clients in this ever-shifting landscape.
We are undoubtedly entering what has been aptly termed the “era of the never normal,” a concept popularised by Peter Hinson. This era is characterised by constant change and unpredictability, and insurers are feeling the impact. Over the past few years, South Africa has experienced extreme weather volatility, which has brought the realities of climate change into sharp focus. What was once considered a distant concern has become a pressing issue that we must address head-on.
On the flip side, some developments have been more favorable. For instance, the extended period of load shedding in South Africa has paradoxically provided a degree of relief for insurers. With over 100 days of continuous load shedding, concerns about grid failure have lessened, and power surge claims have decreased. These changes highlight the importance of staying close to the data and continuously reassessing the risk landscape. Insurers must be flexible and responsive, ensuring that our products remain relevant and provide the necessary coverage in this dynamic environment.
The Importance of Flexibility – Flexibility is crucial in today’s insurance market. As risks evolve, insurers must be prepared to adjust their offerings accordingly. For example, the threat of load shedding may have prompted us to implement certain measures and requirements for our clients. However, if that threat diminishes, it is only fair that we reassess and potentially relax those requirements, passing any benefits back to the consumer.
This approach is not just about reacting to changes; it is about proactively designing products that can adapt to shifting risks. At Discovery Insure, we are committed to working closely with our clients and advisors to ensure that our products meet their needs in this constantly changing environment.
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Discovery Insure Ltd is a licenced non-life insurer and an authorised financial services provider. Registration number 2009/011882/06.
Product rules, terms and conditions apply. Full product details including limitations can be found on our website, www.discovery.co.za or you can call 0860 751 751.
The role of intermediaries has never been more critical. Advisors are on the front lines, engaging directly with clients and gaining valuable insights into their specific risks and needs. At Discovery Insure, we place a high value on the feedback we receive from our advisors. This feedback is instrumental in shaping our product development and ensuring that we are offering solutions that truly add value to our clients.
In this collaborative environment, it is essential that we listen to our advisors while also recognising the need for a sustainable insurance industry. It is a delicate balance, but by maintaining open lines of communication and working closely with our intermediaries, we can achieve it.
Looking at the broader South African context, there is a tangible sense of optimism in the business environment. The political situation seems to have stabilised, inflation is under control, and there is a renewed focus on infrastructure development. The fact that we have not experienced load shedding during the winter months is a significant positive shift, boosting consumer confidence and contributing to a more upbeat national mood.
At Discovery Insure, we are optimistic about the future, but we remain vigilant. It is important to stay attuned to how the landscape is changing and be prepared to adapt our strategies accordingly. As the South African economy shows signs of recovery, we are committed to supporting our clients through these changes and helping them navigate the challenges and opportunities that lie ahead.
The Value of Industry Conferences – Conferences like the one we attended at Sun City are invaluable for industry professionals. Since Discovery Insure’s launch in 2011, we have consistently supported this conference, recognising it as a key platform for professional development and industry networking. The topics covered are forward-thinking, and the sessions provide insights that help us stay ahead of the curve.
This year, I am particularly excited about the discussions around AI, where I participated in a panel. Understanding the implications of AI for the insurance industry is crucial as we continue to innovate and improve our offerings. Additionally, conferences like this one are vital for building and maintaining relationships within the industry. The insurance sector is fundamentally about people, and the relationships we cultivate with our suppliers, reinsurers, and advisors are critical to our collective success.
The insurance industry is navigating a period of significant change. As we move further into this “never normal” era, it is essential that we remain flexible, collaborative, and forward-thinking. At Discovery Insure, we are committed to staying close to the data, listening to our advisors, and continuously adapting our products to meet the evolving needs of our clients.
The future is bright, and with the right strategies in place, we are well-positioned to thrive in this dynamic environment.