Source: Pierre Geyer
After a very solid 2015 – in which their newly merged Hollard and Etana businesses took FIA honours as both Short-Term Commercial and Corporate Insurer of the Year – they reported double-digit growth. Not an easy act to follow at the best of times, but the pair are clear on what it’s going to take for Hollard – and the short-term industry at large – to maintain an upward trajectory in a year that’s off to such a volatile start.
In a perfect storm of tough global conditions and our own economic and political challenges, they acknowledge that insurance spend is under threat: “The motor market – and other sectors that depend heavily on the importation of goods, machinery and parts – are set to be particularly affected and everyone is looking for ways to pay less,” says Pierre bluntly. “Yet with the market in such a state of flux, clients are also looking for better financial advice than ever, and the role of the broker becomes even more pivotal.”
Challenging times for brokers
“As insurers, our business is paying claims,” adds Nash, “and, in this fluid environment, effective cost management is going to be key for all of us. The challenge is to find new and creative ways to mitigate risk by adapting the way we do things.”
In essence, he says, it’s about staying relevant and being open to new ideas so brokers can make better decisions for their clients.
There will always be a requirement for sound, professional financial advice, and for guidance through the claims process, but there’s no question that the traditional role of the broker is changing and – with estimates that 30% of the insurance business is now done direct – Nash insists it is imperative to find new ways to add value.
“Access to technology has fuelled the market’s expectation of instant and convenient solutions – especially among our younger client base – and we have to be able to provide the same levels of technical expertise, while also delivering on their demand for ‘instant gratification’.”
The outlook is best for those brokers who are prepared to embrace the change and upskill themselves and, characteristically, HBM’s executives believe it should be tackled head-on.
Focusing on the fundamentals
“HBM is a solutions-driven business,” says Pierre, “and our own strategy has been to focus on getting the basics right and then move forward carefully and sustainably.”
Getting closer to customers is their first priority, and the individualised service it offers through its 24 branch offices across the country has paid big dividends.
“Relationships are important to us and, while the trend is towards centralising facilities, our decentralised, ‘local is lekker’ strategy has been a pivotal differentiator that speaks to our understanding that people prefer to deal with people, not automated, impersonal systems,” he says.
Nash Omar
“It’s all about eyeballs and handshakes and, this year, we’ll be extending our footprint further into the Platteland, with new branches set to open in Heidelberg, Kimberley and Upington in the coming months.”
Also helping to keep Hollard robust is its diversified business model, says Nash. “As well as its Personal and Business lines, Hollard is an established player in the life and investments sectors, and our HBM product offering is correspondingly diverse and growing.”
Partners cover the spectrum from our new liabilities venture, O2, to specialist concerns such as Artinsure (art) and Equipage (equine) – and diversification is a strategy Nash advises brokers to adopt, too. As the environment continues to morph, HBM believes it will be vital for brokers to have the capacity to play in multiple insurance segments as well.
Inevitably, staying relevant will also depend increasingly on technology and HBM is already working with a number of partners to develop new, smart tools that have the potential to enhance decision-making. It is an approach that, Pierre says, will inform more and more product development as technology advances and the Internet of Things becomes a reality.
The bottom line
The stark truth is that our business is changing shape – fast – and, to survive and thrive, we all need to change with it. Pierre, Nash and the HBM team are on hand to support brokers and partners in building capacity and suggest we make a start by:
- Staying up to speed with the tsunami of legislative changes, such as POPI
- Adopting, and living, the 6 Principles of TCF
- Verifying the “clean” quality of data before relying on it to give clients counsel, or making decisions that affect them
- Recognising the growing importance of the retail distribution channel
- Taking accountability for educating clients, to help them manage their risk more effectively
- Promoting transformation
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