Safire Insurance by CMB Media Group

SAFIRE INSURANCE

Three Decades Strong For

Safire Insurance PRODUCTION: Manelesi Dumasi

Fair and fast, no call centres, access to decision makers, a proven track record, and expert adviceâ&#x20AC;&#x201C; these are the promises made in its branding by Safire Insurance and, over the past 30 years, staying true to these values has helped the company position itself as one of the leading specialist insurance providers in South Africa.

SAFIRE INSURANCE CEO PIERRE BEKKER

INDUSTRY FOCUS: FINANCE

Pietermaritzburg-based Safire Insurance is celebrating its 30th anniversary. It was 1987 when this innovative insurance co-op started life, aimed solely at members who needed to act to limit the spiralling costs of insuring their timber. Back then, the business was known as the Central Timber Fire Protection Co-operative Limited (CTFP) and members’claims were settled from a central pool of reserves contributed by the members. “This was 30 years ago and our founding fathers embarked on this journey for one reason, and one reason only: To ensure cost effective insurance for timber growers’ plantations,”states CEO Pierre Bekker. “In 1987 premiums were about to double and cover was in limited supply. Claims by the corporates and insured plantations in South America and Australia in the preceding years had caused this untenable situation. My father, Bailey Bekker, saw the unfairness in the fact that the lower-

risk private timber growers in South Africa were going to pay for the losses of the higherrisk timber growers both locally and abroad. “His idea was to approach the reinsurance market, at what must be said was a very difficult time, to convince them of the difference between the two types of timber growers. After meeting with many underwriting syndicates in the Lloyds market and feeling quite rejected, he eventually came across Jerome Nice. He was the head of a large syndicate that had been exposed to the global catastrophic timber losses and saw the increased premiums, as did all the other markets, as his way of recouping some of those losses. Jerome Nice liked Bailey’s very unorthodox and frank way of putting things and very unexpectedly decided to back the proposal,”he says. With the reinsurance backing, the co-op was formed and three of the significant members at the time - NCT, TWK and LK -put up limited guarantees to back the

co-operative pool. A group of Directors was elected (Bailey Bekker, Doug Crowe, Peter Lorenz, Stuart McMurray, Dave Dobson, David Earl, Reg Niebuhr, and Michael Daly as GM) and with just three employees serving 296 timber growers, CTFP received certificates of participation in a pool insurance scheme contemplated in terms of section 51 of the Co-operatives Act. Over the ensuing years, the market place changed dramatically and the company adapted well to new methods of doing business and new entrants to the market. Realising the need for expansion and diversification, Safire Insurance began running general lines of short-term insurance for domestic, commercial, agricultural and other clients and this has been hugely successful, dwarfing the timber plantation business which now represents just 10% of the company’s total revenue. “Not only have all the milestones and the growth we have achieved contributed

SAFIRE INSURANCE

to broadening our objectives and seen us playing a far larger role in the wider economy and society, we have also expanded our responsibilities towards many more stakeholders. We are proud to have met and in fact far exceeded the original expectations and objectives of our founding fathers, which was to provide cost effective insurance for timber-growers’plantations,”says Bekker. “Our diversification has made Safire a more meaningful player for our reinsurers– we can offer them much more business. The decision to expand beyond forestry insurance was a strategic move and largely done to sustain our forestry insurance – we did it for the benefit of our timber clients. We had no idea that the short-term side of our business would grow to the levels of today,”he admits. While 2017 might have been a year for reflection and realisation of just how far this pioneering organisation has come, Bekker has his eyes on the future and is hoping to move forward with little resistance.“We’ve

completed our celebrations - we invited our founding members to an awards event at Safire House in Pietermaritzburg – and we are now looking forward and focusing on the next thirty years!” EXPANSION & IMPROVEMENT One of the first steps for Bekker and Safire at the start of the next 30-year journey is international growth and product development. This of course means looking to other geographies and further widening the product portfolio, but Safire will not be reckless. “In terms of the forestry side of the business, over the past thirty years in South Africa there has been a shift from numerous smaller farming concerns to larger and fewer farms, a change that has put us under increased pressure,”says CEO Bekker.“There is a limited amount of growth. To expand in this environment we have to look elsewhere and we have an eye on widening our operations

INSURANCE “SELF-SERVICE” SOLUTIONS

into these other areas. We need to grow but not at any cost, so we are being careful. “There is a lot of opportunity to expand existing offerings by improving and expanding our products to cover new risks – as the risks change for our clients so we adapt our products; for example, cybercrime. Cybercrime is one of the fastest-growing crime trends and costs billions globally, and is changing from being committed by individuals or small groups to highly developed cyber-criminal networks. Stolen data, ransomware that stops businesses, hacking – these are risks that now need to be covered.” Safire’s growth will come through three main strategies: new products and expansion and enhancement of existing products; new operational areas globally; and removing process waste and redundancies so as to offer better levels of service for clients (brokers). However, the key focus for the business while pursuing growth will be sustainability

• Secure registra�on process with One Time Pin sent to the policyholder’s phone with integrated database lookup to ensure the process is seamless. • An integrated online web portal compa�ble on tablets, laptops and PC’s.

Listed below are key func�ons that will enhance your overall product offering and your client’s experience with your brand. You can pre-select which op�ons to include in your branded Apple and/ or Android Mobile App. • You will be able to access important informa�on about your customers through intelligent data gathering on the app. • Your policyholders will be able to view their insurance policies live to ensure they have a “real-�me” view of their cover and premium. • Addi�onal cover can be requested via the app and your client can include photographs / scanning of license disks to capture relevant data about the vehicle for assessment. • A built-in panic bu�on to push in case of an emergency. The panic bu�on will send an alert into the call centre to “call back” the client and arrange immediate assistance. • The ability to lodge a claim with step-by-step assistance on the app. The motor claim form includes the ability to scan the barcode of the regular driver and third par�es’ vehicle license disk as well as driver’s license disk. The data within the barcode is seamlessly decrypted and pre-populated within the app to simplify the data capture process. Policyholders will also be prompted to take the required photo evidence at the scene and these photos will be date and �me stamped so as to keep a proper audit trail and enable you to expedite the processing of the claim. • Your policyholders will be able to recommend and refer friends and new leads to you. • You will be able to promote new product offerings and news to your policyholders via the push no�fica�on func�on. • Vehicle and Motorbike Pre-inspec�on – your client will be able to take photos of the front, side and back of the vehicle/bike, scan the vehicle/bike license disk to capture the details of the vehicle/bike e.g. make, model and deriva�ve as well as scanning the driver’s license disk to decrypt the driver’s details. The full pre-inspec�on detail will be sent through to your offices via email to assess. • Home Pre-inspec�on- your client will be able to take photos of the household items, and capture item values. The full pre-inspec�on detail will be sent through to your offices via email to assess.

Oﬃce: +27 11 291 7300 Anthony Ko�on: +27 82 784 4271 (anthony@oneloyalty.co.za) Ryan Grill: +27 82 552 8216 (ryan@oneloyalty.co.za) www.oneloyaltyrewards.co.za

One Loyalty is proud to be associated with Saﬁre Insurance Company as their value-added service provider partner.

www.enterprise-africa.net / 5

INDUSTRY FOCUS: FINANCE

and longevity.“We are not willing to grow at the expense of sustainability – that’s not an option for us,”says Bekker.“We have seen a number of players come and go in recent years especially in the forestry sector where no insurer other than Safire has managed to survive long-term. Today, we have three years’ guaranteed reinsurance cover from our lead reinsurers at fixed terms – unheard of in the forestry market.” Economic growth in South Africa was almost non-existent in 2016 and it was a tough year for the short-term insurance industry. This is why Bekker and Safire are keen to not get into price wars and not to overstretch.“Growth is not all-important for us,”he says.“We have a more conservative mindset – this is a very difficult workingenvironment and an extremely soft insurance market;it’s not the time to grow too fast. We will however continue to expand through the innovation of our product offerings and by being better than other companies in terms

of service levels and products, not through undercutting on price alone.” ECONOMIC INSTABILITY When the SA economy moved into ‘technical recession’in June, following a downgrade from the big International Credit Ratings agencies to‘Junk status’, the trading environment quickly became volatile for the majority of industry sectors. Insurance, one of South Africa’s strongest and most resilient industries, was not immune to the trouble and many companies are finding themselves in a precarious position. “It is a very difficult environment in which to work,”admits Bekker.“It affects us because it affects our clients. It is very difficult to plan because of general uncertainty.It is a soft cycle so it is hard to plan ahead, but we are prepared for when the harder cycle begins.” The lack of confidence and the reluctance of the market to make firm

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6 / www.enterprise-africa.net

commitments to spending have also caused a rocky environment with currency pricing. “Lots of claims are affected by the weaker Rand – many assets, such as vehicles, are imported and costs are driven up for us as an insurer. Also, we pay our re-insurers who are mostly international companies, and our relevance to them in terms of our value is affected if the Rand depreciates,”explains Bekker. But the economic situation appears to be slowly turning itself around. The National Treasury lists continuing global growth, stabilising commodity prices, improved reliability of electricity supplies, and less volatile labour relations as potential‘green shoots’for South Africa and is hoping for a swift return to growth. SAFIRE ADVANTAGE Key in Safire’s navigation of these challenging times is the company’s focus on relationship development and understanding of client requirements. The company’s logo is designed to replicate a‘warm handshake’ made up of five fingers each signifying a core strength of the business – fair and fast, no call centres, access to decision makers, proven track record, and expert advice. “The human side of our insurance offering is a major plus of working with Safire,” says Bekker.“We are opposed to the global move towards call centres and using artificial intelligence (AI) to process claims, especially in the East. Using AI is fine for processing paperwork but when there’s a problem, people want to talk to a person and not wait for ages in a telephonic queue. “We operate through a network of trained brokers who are able to sit with their clients and go through the ins-and-outs of their insurance needs and the paperwork. Our levels of service exceed the expectations and experiences of our brokers and consumers, and we sincerely believe that this is a major part of our market advantage,” he adds. The‘human side of the business’extends beyond customers and clients and also incorporates the methods in which Safire deals with suppliers and staff. In the insurance industry, onboarding the right people, developing them, and retaining them can be

SAFIRE INSURANCE

the difference between a good and a great company and Safire recognises this, endlessly pursuing the upskill of people. “People are the most important part of what we do in terms of our business and service levels so we prioritise our in-house training of staff,”says Bekker.“People can no longer rely on a formal education, and neither do we. We tend to focus not on degrees and certificates but look at an individual’s potential to work well within our environment. “Our offering and culture is very different to other insurers so we have a strong training programme and have developed bespoke training facilities at head office to work with the raw talent of new people – often fresh from school and educational programmes. We keep taking people out of their comfort zones in their current positions at Safire and challenging them to grow.” He cites education and skills development as one of the country’s

biggest challenges and points out that Safire recognises the need for investment in these areas. This is why the company is active with education in social upliftment programmes. “We sponsor libraries and bursaries. I also believe that people need to be guided and encouraged to self-educate, via the internet for example. Self-discipline is required but there is so much potential for people to learn through enhanced access to technology, as long as they are prepared to work hard and sacrifice some of their free time. Balance is important and this should include a commitment to achieving your desired goals,” says Bekker. The company’s 200 people know that they will be challenged but they know that they are valued.“We enhance their skills continually and we have a great working environment: young, dynamic, exciting, challenging. There is a great sense of teamwork,”says Bekker. So what can we expect from Safire

in the future? Certainly a continued focus on the core strengths captured in its logo; certainly a focus on expansion and efficiency; and certainly an emphasis on people development, ensuring employees are at the cutting edge of the industry. While 30 years may sound like a long time, this is a business that is really only starting out on its journey, and the principles on which it is built remain solid today. “We are naturally very proud of the legacy that has been developed over the past three decades and look forward to the ongoing development and expansion of the company,”Bekker concludes.

SAFIRE INSURANCE 033 264 8500 admin@safireinsurance.com www.safireinsurance.com

Hugo’s Panel Shop PANELBEATING - SPRAYPAINTING - CHASSIS STRAIGHTENING

WHO ARE HUGOS?

Hugo’s Panel Shop has been in existence since 1996.

TOOLS & EQUIPMENT

CEO, Craig Frankson has 25 years experience in the industry. 10 Years ago, he broke away from the family business, and established Hugo’s Panel Shop, which is a panel beating, chassis straightening, spray painting and auto trimming business.

The equipment itself is and meets the approval and the requirements of all the insurance companies together with the motor dealerships with whom the business transacts. Tools and equipment are kept in the best possible condition by regular servicing and upgrading. I believe that when considering this application the need to view the tools will be readily available.

Tel: 033 394 0294 / 033 345 3398 Fax: 033 342 1560 Cell: 083 786 4821 / 083 786 5098 / 082 086 0154

Email: hugospanelshop@iafrica.com 220 Victoria Road Pietermaritzburg 3201 P.O.Box 8257 Cumberwood 3235

GUARANTEE & WARRANTY

We hold a 12 month guarantee on our workmanship and a 3 year paint warranty. This ensures customers as well as insurance companies peace of mind knowing the highest standard of repairs are being conducted.

www.enterprise-africa.net / 7

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Issue No.62

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G4S DEPOSITA:

When Cash

is King

ALSO IN THIS ISSUE:

Van Schaik Bookstore / Zoona / IPSS / Safire Insurance

A S F E AT U R E D I N

ENTERPRISE AFRICA

SEPTEMBER 2017