COVER Magazine

Navigating Africa's Engineering Insurance Landscape

At the Insurance Institute conference at Sun City, Philani Mbatha, Executive Head of African Region at Mirabilis, discussed the company's extensive experience in engineering insurance across Africa. With over 15 years in the market, Mirabilis operates continent-wide, responding to infrastructure projects as they emerge. Mbatha highlighted the growing infrastructure needs in Africa, from roads to ports, and emphasized the importance of understanding local regulations. He advised reinsurance brokers to work with knowledgeable partners like Mirabilis to navigate the complexities of the African market, respect local rules, and contribute to the region's economic growth. 

Adapting to a Changing Risk Landscape in South Africa

At a recent conference, Robert Attwell, CEO of Discovery Insure, discussed the evolving risk landscape, emphasising the need for insurers to adapt to "the era of the never normal." He highlighted the impacts of extreme weather and power stability on risk management. Attwell underscored the importance of working closely with advisors to understand client needs and maintain industry sustainability. He expressed optimism about South Africa's economic environment, noting improvements in inflation and political stability. The conference provided a valuable platform for industry professionals to discuss future trends and foster essential relationships.

Evolving Conflict Resolution in the Insurance Industry

At the AIE 2024, Donald Dinnie, Director at Norton Rose Fulbright, discussed the evolution of conflict resolution within the insurance industry. He highlighted the shift from primitive conflict handling to modern alternative dispute resolution (ADR) methods. The insurance sector has seen a significant increase in using mediation and arbitration, driven by the inefficiencies and delays in the court system. Dinnie emphasized the importance of proper documentation and early witness statements to ensure a smooth dispute resolution process. The introduction of new ombud rules has enhanced the industry's accountability, benefiting both insurers and insured parties. 

Adapting to Climate Change

At the AIE 2024 conference in Sun City, Dawn Miller, Chief Commercial Officer of Lloyd's, discussed the critical issues facing the insurance industry, particularly in South Africa. She highlighted the increasing relevance of climate change, pointing out that urbanization and shifting populations are exacerbating risks. Miller emphasised the importance of collaboration and innovation, especially in risk management and addressing new technologies. Lloyd's, through initiatives like the Lloyd’s Lab, is fostering a space for the insurance market to innovate and tackle complex risks, from cyber threats to climate-related incidents. 

Workerslife's Role in South Africa's Insurance Landscape

Tony from Cover Magazine interviews Betty Masemula, Managing Director at Workerslife. Workerslife, a wholly black-owned insurance company established in 1996, offers both life and non-life insurance products. The company serves core markets, including pop crew members, and is expanding to reach broader audiences. Betty highlights their innovative products, such as a life insurance plan that provides monthly income without medical underwriting. Workerslife uses a multi-channel distribution approach, including face-to-face, online, and call centers. They are attending the AIE 50th celebration to enhance brand visibility and seek collaborations. Betty emphasizes their mission to provide accessible insurance solutions.

Upskilling the Financial Sector

Tony from Cover Magazine interviews Abbot Pfukwa, CEO of Octomate Education, at AIE 2024. Abbot explains that Octomate, founded in 2009, specialises in education, training, and skills development, focusing on the financial services industry.  
They offer programs such as learnerships, internships, and regulatory exam preparation, and have developed the RE5 Made Easy app.  
Octomate also provides CPD programs and e-learning options. The company extends its offerings beyond insurance and banking, including business analysis and compliance courses. At the conference, Abbot appreciates insights on leadership and collaboration shared by esteemed speakers. 

A holistic approach to customer experience in the glass business

A chat with Damien Goodrum, Business Analyst at My Glass

The Role and Responsibilities of Insurers in Data Sharing

In a COVER Magazine interview, Tony discusses data sharing in the insurance industry with Sharon Paterson, CEO of Infiniti Insurance, and Angus Black, Director at Barn Owl Data Solutions.
Sharon explains the regulatory and business imperatives for insurers to obtain daily data dumps and maintain full access to client information. She emphasises that accurate data is crucial for managing claims, especially in weather-related catastrophes, and for regulatory compliance.
Angus outlines the technical complexities of receiving data in various formats from different broker systems and the importance of data standardisation and cleansing. He shares that Barn Owl Data Solutions has developed relationships with numerous insurance management systems to streamline this process, ensuring high-quality data for reporting and analysis.
Both Sharon and Angus highlight the benefits of effective data management. For brokers, accurate data reporting provides insights into client claims history, rate benchmarking, and regional comparisons. These improvements help brokers serve their clients better and maintain competitive pricing.
They also discuss the challenges, such as load shedding, which can disrupt data collection, and the importance of ongoing technical innovation to mitigate these issues. Overall, the interview underscores the critical role of data in enhancing the efficiency and effectiveness of the insurance industry.

Engineering Insurance in Africa: Building from the Ground Up

Cassim Hansa, a seasoned technical underwriter at Firedart Engineering Underwriters, highlighted the critical role of engineering insurance in Africa’s infrastructure development. He emphasised the dynamic nature of underwriting, where projects are often insured from the ground up. Collaboration is key, as no single insurer can manage the risks of large-scale projects alone. Hansa is particularly excited about opportunities in East Africa and Malawi, where ambitious projects like the Lake Malawi water initiative are poised to drive significant economic growth across the continent.

The Hidden Costs of Fraud: Beyond Financial Losses

In an insightful conversation, Jason Lane Sellers, Director of Fraud and Identity at LexisNexis Risk Solutions, discusses the growing challenges of digital fraud in financial and retail e-commerce sectors with Tony from Cover Magazine. Highlighting findings from their latest report, Jason explains how digitization has increased fraud incidents, with 52% now originating from digital channels. He emphasizes the broader costs of fraud beyond financial losses, including customer dissatisfaction and regulatory penalties. Jason also touches on the evolving nature of fraud, particularly in the insurance industry, and suggests advanced solutions like behavioral intelligence to balance security and customer experience.