Equipping brokers with tools to navigate changing landscape
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Eincluding training and development focused on risk assessment, empowering brokers with the knowledge to understand and manage contemporary risks. Monthly newsletters provide brokers with valuable insights into current risks, keeping them informed and prepared, while webinars provide education on emerging risks and proactive management strategies.
individuals and businesses alike. To thrive in this environment, we must embrace innovation, he says, pointing out product, distribution and process innovation are essential for unlocking opportunities in the changing landscape. As risks become more complex, Coetzee says Santam Broker Solutions is committed to equipping brokers with the necessary tools to navigate these changes effectively. The company has implemented several initiatives aimed at enhancing broker competence
Brokers are also encouraged to adopt technology for proactive risk management, ensuring they can adapt swiftly to the evolving landscape. Brokers today face a myriad challenges, including technological disruption from insurtech companies and rising consumer expectations. Coetzee says to combat these challenges, Santam Broker Solutions is streamlining processes and leveraging technology to create an omnichannel experience for intermediaries, making it easier for them to engage with clients. Understanding that consumer needs are unique, Santam is empowering brokers with tools that allow for personalised product offerings. The recent implementation of geocoding is aimed at enhancing the business risk management capabilities, enabling better assessment and accumulation of reinsurance exposure. In addition, brokers are being included in discussions about underwriting requirements and market changes to ensure they are well-informed and equipped to manage client expectations.
The Santam Emerging Brokers Programme focuses on nurturing new talent within the industry, ensuring a pipeline of knowledgeable professionals who can effectively serve clients. To better support brokers, the business has enhanced its self-service functionalities to allow brokers to assist clients more efficiently while geocoding intelligence aids in precise risk assessments and enhances Santam s ability to manage risks collectively.
To remain relevant amid evolving risks, we continually adapt our product offerings using geolocation data to tailor insurance products for specific risks, such as floods and storms; streamlining certain products to prevent underinsurance,
particularly in areas such as geyser coverage; adapting the claims process with adjustments to the power surge cover and claims process to help deter fraudulent claims; and managing premium increases by fine-tuning claims excesses to help keep premiums manageable for clients says Coetzee. The business recognises that its relationship with brokers is crucial in managing and mitigating risks. Brokers are not just intermediaries; they are integral to effective risk management. As the industry evolves, the role of brokers in evaluating risks, advising clients and ensuring compliance with regulations becomes even more critical. In an industry where accountability is paramount, brokers must possess a thorough understanding of both client needs and insurer requirements. This evolving dynamic necessitates a proactive approach to risk evaluation and management, facilitated by technology and ongoing education, he says. To help brokers navigate regulatory changes, the business issues operational
circulars to inform brokers of relevant regulatory changes and required actions. It collaborates closely with brokers to ensure they are aligned with compliance requirements, conducts onsite reviews and assessments to help brokers adhere to regulatory standards and has established a broker advisory forum to foster dialogue about compliance and regulatory matters, ensuring that brokers remain informed and engaged. Broker feedback has become an essential component of helping to shape Santam s service offerings. By holding regular broker advisory forums and experience surveys, we actively seek input from brokers, ensuring their needs are
Showing resilience despite challenges
Fanus Coetzee.
INSIGHTS: INSURANCE BROKERS
Tailored solutions based on clients’ needs
Karen Rimmer.
Thando Maeko Political Reporter
Four more SANational Defence Force (SANDF) members have died inconflict betweenthe Democratic Republicof Congo (DRC) and Rwandan-backed M23 rebels,bringing thetotal number of SA casualties to 13. Thiscomes asa trucehas been brokeredbetween the SANDF forces andthe M23 to allowthe SouthAfricansaccess to medical supplies.
Weneed toaccessmedical facilities for thosewho require medical attention, SANDF spokesperson Siphiwe Dlamini told Business Day.However, he didnot indicatewhichsupplies wererequired andfor howlong the truce would last between the two opposing forces. Avideo circulatingonsocial media platformssince Monday showed SANDFmembers raising awhite flag at theM23 fighters, possiblyindicating surrender, whichDlamini hasdenied. Ina statement,the SANDFsaid:
POISONINGS
The footage inquestion depicts a white flag raised, which is an outcome ofdiscussions between the opposing fighting forcestoagree onatruce,to allow M23 torecover their dead and injured in thevicinity of our base. Thiswill alsoopen theroute for our troops to access medical facilities. Thisis commonpractice in any war.
M23rebels saidthat onSundaytheytook control of the city of Goma,a keyhub inthe conflict between M23 and the DRC s armed forces.
The SANDF says the latest casualties were caught in crossfire nearGoma International
Airport,which isclose tothe SANDF base.
TheM23 rebelslaunched several mortarbombs inthe direction of Goma airport, which landed on theSANDF base, and this resulted in the SANDF losing three members, the defence force said in a statement.
One ofour memberswho was injured during the battle withM23 rebelsover thepast three days latersuccumbed to injuries. The restof the injured memberscontinue toreceive medical attention at Level 3 Hospital in Goma.
The SA soldiers are part of the UN Organisation Stabilisation Missionin DRCand Sadc Mission in DRCand will remain in the areaas peacekeepers, the SANDF said.
In aphone discussionthat took place on Monday, President CyrilRamaphosa andhisRwandan counterpart, Paul Kagame, agreed that a ceasefire must resume and peace negotiations must begin. The presidencysaid: The
two heads ofstate have agreed on theurgent need fora ceasefire andthe resumptionof peace talksby allparties tothe conflict.”
Inanaddress totheOxford Unionin LondononMonday, ministerof internationalrelations& co-operation Ronald Lamola calledfor theDRC and Rwanda to renew diplomatic dialogue.
DIPLOMATIC TIES
SApreviously calledforthe withdrawal of Rwanda s forces from theregion and forKigali to haltitssupport ofM23,saying actions ofthe rebelgroup contravened theceasefire brokered throughthe LuandaandNairobi peace processes. Lamola sremarks followthe DRCsevering alldiplomaticties with Rwandaby recallingits diplomats from Kigali. DRC has told Rwanda tocease diplomatic and consularactivities inthe DRC capital within 48 hours, according to reports by Reuters. maekot@businessliveco.za
Youth apathy endangers democracy think-tank
• Institute for Justice and Reconciliation calls for inclusive civic education
Kabelo Khumalo Companies Editor
AnInstitute forJustice andReconciliation (IRJ)policy briefsays the disconnectbetween young South Africans and formal politics threatensdemocracy s future, calling onauthorities to develop comprehensivecivic educationas oneof themeasures toget theyouth interested in politics
The policybrief informed conversations conducted through the institute s Youth Identity project withyoung peopleaged 15to30 in peri-urban and ruralcommunities across the country, namely Ceres, Warrenton, Douglas,Tulbagh and Umzimkhulu
The IRJ said conversations revealed analarming levelof disconnect betweenyoung people andformal politics,putting the futureof thefledgling democracy inperil. To address
this, there must benew ways of creatingpathways tore-engage youth.First,there isaneedfor comprehensive civiceducation toequipyoung peoplewiththe knowledge tonavigate political systemsand leveragetheircollective power, said the IRJ. Increasing youthrepresentation inpolitical institutionsis essentialfor reflectingtheir voices in decision-making. Lastly, young people need toolsand strategiestosustain their informal movements beyond momentsof crisis,particularly through leveraging digitalspaces toadvocate fortheir causes and influence policy.
Thelow youthparticipation in SA’sdemocratic processes was illustrated by low voter turnoutin lastyear s general election. Of the nearly 40-million people eligible to vote, only 16.2millionwentto thepolls,while 11-million did not even bother to
register tovote. Politicalparties ofallideologies tried to get youngpeople toregister tovote, but young peoplelargely stayed away from the polls. The IRJ said when young people withdrew from collective engagement, democracy was left impoverished. The slowpace ofchange makesmany youngpeoplefeel as though the freedom promised tothem ismore symbolicthan substantial. Forthe generation that grew up post-apartheid, the persistenceof theseinequalities raises doubts about the effectivenessof democraticinstitutions in trulytransforming society, it said.
processes. While young people increasingly turn inward prioritising personal advancement throughentrepreneurship, socialmedia, andself-improvement thetenuous connection between theindividual andthe community raises concerns about the
Government must develop robust food safety framework, urges academic
Luyolo Mkentane Political Correspondent
University of Pretoriaexpert on food safety andregulatory control Prof Lise Korsten has called onthe governmentto developa robust regulatory framework for food safety thatis effectively communicated, fairlyimplemented and enforcedby entities with the necessary training.
The government allocated R15mfor rapidtesting ofsuspected contaminated food productsand settingup aR500m fundto supportspaza shopsand other businessesin thetownships and rural areas.
Korsten said the state must develop a foodsafety policy and food safetyauthority, among
Korsten was addressing parliament s portfolio committee on agricultureon Tuesdayafter 22 schoolgoing children diedin SA after consuming snacks bought from spaza shops last year. By last December890 incidents of food-borne illnesses were reported across trhe country,with GautengandKwaZuluNatal theworst affected,while Limpopo, Free State and Mpumalanga recordeddozens of incidents.
other interventions.It neededto investin capacitydevelopment at all levels, including inspectors/regulators, labtechnicians, researchers and risk assessors. Investigationsinto thedeaths revealed poor waste management and unregulated use of pesticides,such asaldicarband terbufos, she said. Inhis addressto thenation on November 15 2024, President
Essential partners to financial journeys
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and AI. Direct sales which bypass brokers continues to place pressure on the traditional intermediary model demanding innovation and enhanced client value. To address these challenges, intermediaries must balance technological advancements with a human touch that fosters long-term relationships, positioning themselves as essential partners in their clients financial journeys, she says. The Global Insurance Market Report (GIMAR) 2024 refers to economic growth, asset and liability growth, solvency and profitability of insurers and liquidity as key issues. We know that supervisors, including the Financial Services Conduct Authority (FSCA), will be taking measures to address risks such as enhanced risk assessment frameworks and stress testing exercises, increase monitoring of liquidity risks and engage with insurers to assess governance
frameworks related to AI, to name a few. This will undoubtedly have an impact on intermediaries as they are at the forefront of the client engagement process, says Van der Merwe. Among the issues keeping brokers awake at night, she says, are local insurers capacity for risk and their ability to take on new risk, the latter which has declined and has become more expensive. Other issues of concern include the imposition of restrictions and subjectivities to cover any amendments to existing contract wordings by insurers and reinsurers (such as grid failure exclusions), which has led to contract uncertainty. At the same time, insurers are expecting clients to invest in risk management measures, skills and expertise while limiting cover and increasing premiums.
VALUE IS CONSTANT
While each year brings its share of uncertainties, the value that intermediaries deliver remains consistent. Their ability to adapt, anticipate and respond to each client s unique needs is a testament to their resilience and expertise. Intermediaries stand at the crossroads of risk and opportunity, guiding clients with clarity and confidence through even the most unpredictable times, says Van der Merwe Trust in their ability to navigate change is well founded because it s not uncertainty itself that defines outcomes, but how we choose to approach and leverage it. With a focus on innovation, personalised service and deep industry knowledge, intermediaries continue to shape brighter, more secure futures for their clients.
Cyril Ramaphosasaid: After stringent testing,a chippacket foundon oneof thechildren who haddied hadtraces of terbufosonboth theinsideand outside the packet.”
Korsten saidterbufos had been found in spaza shops and food itemsthat led to atleast 24 children dyingand dozens admitted to hospitalwith symptoms,including stomachpains.
Shecriticised inadequate food safety standards at spaza shops and informalfood vendors,with food being stored besides pesticides and detergents She drewcomparisons betweenthe formalfreshproduce sector andthe informal one,saying theformer hadselfregulatorysystems andcompliedwith GlobalGAP[Good AgriculturalPractice], whilethe latter remainedunregulated, with noaccess towaste removal,no pesticidespray monitoring and no access to potable wateror goodhygiene/ sanitation. “Food must be seen as important asset to achieve health andwellbeing. People must not be exposed to fast foods ...we mustchange the mindsets, Korsten said. She differentiatedbetween
formal and informalfood systems, saying theformer pertainedto thelegal importationof food, food depots/warehouse before reaching the consumer, while the latterwas characterised by illegalmovement of foods , which wereeither stolen or written off andthen sold in pavement shops/street vendors to lower-income groups. mkentanel@businessliveco.za
