IIG Insights: Property & Motor
Another Insight with the topic “Property & Motor” took place in June.
Allianz,Discovery and Santam shared recent experiences as well as trends from the South African Insurance industry.
The 6thIIG’s Industry Outlook was held on the 21stJune 2018 at the GIBS Business School in Illovo and yet again we are so pleased to advise that it was a sold-out event. This is a huge boost for the IIG as it affirms to us that we are creating opportunities for members to learn, network and share knowledge. The theme for this insights session was Property & Motor – Covering the Risks of Today. Our 3 speakers for this session set an excellent tone of what we can expect both now and into the future in terms of Property & Motor insurance.
Our MC and Host for the morning was IIG Education Council Member Daphne Peter, who welcomed our guest speakers, council members and delegates. Our sponsors for this Industry Outlook session was Allianz, Discovery Insure, Santam and Sasria. We would like to thank our sponsors for partnering with the IIG and enabling us to bring this Insight Session to the industry.
Our first guest speaker for the morning was Seelan Naidoo from Allianz. Seelan spoke about the transformation of property Insurance and gave us 3 predictions about the future. The 1stwas that products into the future will look fundamentally different, 2ndwas that current roles in business will evolve and new roles will emerge, 3rdwas that service platforms will play a key role in the future. He briefly highlighted the top 10 global risks in business for 2018, with Business Interruption being number one. He raised the issue of supply chain management and the risks business face if they don’t fully understand the relationship and the impact to business if something goes wrong. Understanding the complex supply chain relationships is key to providing adequate insurance cover to corporate clients. We also learnt about the importance of Insurers investing in technology to improve risk analysis. In today’s insurance landscape risks are changing, and clients along with their insurance needs are evolving rapidly, in this emerging landscape insurers must commit to further embrace the insights provided by the effective use of data and technology, and transform them into valuable products and services supporting the changing client risks and insurance environment.
Our second speaker for the morning was Shehnaz Somers from Santam. Shehnaz took us through a very practical explanation of how an underwriting cycle works and what led us from a soft cycle to the hard cycle that the industry is experiencing now. She gave us some excellent examples of what caused the large fires that the market experienced in 2017. We were given an overview on why Insurers survey risks and examples of poor housekeeping that caused some large losses to the market. Shehnaz shared a visual example of a warehouse fire that had the appropriate sprinkler system that controlled the fire vs a warehouse where no fire protection existed. The audience was extremely impressed by the explanation on cause of the frequency and severity of property losses such as the type of construction, combustible nature of goods, lack of appropriate fire-fighting services and other external factors such as political environment, economic environment, drought, etc. In a nutshell, sound underwriting principals would have to prevail, if we want to ensure resilience and sustainability of property insurance.
Our third speaker was Tony Tsuen from Discovery Insure whose presentation was titled “ Insuring the risk of today”. Tony spoke about a rapidly evolving risk terrain and the three factors contributing to increasing risk complexity. 1stwas technological advances such as cyber risks and connected & smart technology, 2ndwas changing business ecosystems and 3rdwas macro-environmental forces. Tony highlighted the macro trends affecting business and drew comparisons between major risks that business faced in the 1960’s vs the emerging risks affecting business in 2018. Wow, a lot has changed since the 1960’s! Social media and multimedia have fundamentally changed our society and Tony commented that crises management is crucial for a business and its reputation, especially brand management. Road accidents are having a significant impact on business and bad driving behaviour is impacting business. Tony shared the importance of companies needing to invest in risk management to improve the current outcome.
Our guest speakers certainly were dynamic, with superb presentations that were engaging and informative on a topic that is very current and challenging for the insurance industry. The IIG would like to thank our sponsors, Allianz, Discovery Insure, Santam and Sasriain association with GIBS Business School for this insight session as well as GIBS for hosting another successful event.