InsureTalk47: Protecting Futures

InsureTalk47 took place online on Thursday, 24 October 2024.

The first speaker of the day was Simon Colman, CEO of The Liability Company. His topic was antisocial media: the impact on liability insurance.

Simon spoke about how social media impacts liability claims. His interest in this topic started about 10 years ago when a case involving a client running a pharmacy exposed him to the intersection of social media and liability.

“The client faced a liability claim after allegedly selling expired condoms, leading to an unintended pregnancy,” he said. “While the insurer was initially hesitant to defend the claim, they ultimately supported the client, though the case was settled out of court due to concerns about brand reputation.”

Simon demonstrated how social media can rapidly amplify such incidents, turning potentially defensible claims into public relations crises.

He shared statistics on social media usage in South Africa, highlighting how platforms like Facebook and WhatsApp are frequently used by customers to voice complaints, which can damage a business’s reputation.

“Customers today have just so many different ways that they can get in touch with businesses and communities to make sure that their voices are heard,” he said. “The power of social media can lead to inflated claims or settlements, even when the insurer has a strong defence.”

Simon cited examples such as the Tiger Brands listeriosis predicament and the Ford Kuga spontaneous combustion crisis, to show how social media-driven liability issues can escalate.

“There needs to be a balance between the empathetic approach of the company, what’s going on in the background with the insurers, and communication with the public,” he said.

Social media monitoring and crisis plans, he said, are very important.

“Social media monitoring and crisis management are crucial for preventing small incidents from becoming large-scale reputation issues, requiring effective collaboration between insurers, businesses and public relations teams.”

In conclusion, Simon quoted Joseph Wall, who said the following in the 17^th century: “A reputation once broken may possibly be repaired, but the world will always keep their eye on the spot where the crack was.”

Clive Hogarth of OMI was up next. He spoke on the impact of climate change in South Africa in terms of weather, economy and the insurance industry.

He discussed how increasing weather events, such as floods, wildfires, and hailstorms, are becoming more frequent in South Africa and globally, showing examples like flooding in Durban and Cape Town, receding glaciers in Norway and rising waters in Venice. He pointed out that, although climate change is caused minimally by Africa, it disproportionately affects the continent, with some regions warming at double the global average.

“Global warming could exceed 2.5°C over time based on current policies,” he said. “South Africa, in particular, is already experiencing severe changes in rainfall patterns, which negatively affect agriculture and food security, especially in water-scarce regions like the Western Cape.”

In terms of economic impact, Clive pointed out that climate change could severely hurt South Africa’s GDP, particularly the vehicle and export industries, if the country doesn’t keep pace with global electric vehicle manufacturing trends.

“Vehicle sales to Europe – our largest export market – might suffer if South Africa doesn’t adopt green initiatives in line with carbon reduction policies,” he said.

Clive also touched on the impact of climate change on the insurance industry, showing how climate-related catastrophes have led to increasing losses over the last decade.

“Insurance companies are using advanced data analytics to assess risks more accurately, which could lead to higher premiums for high-risk areas,” he said. “Wealthier communities, such as Val de Vie in the Western Cape, are now facing challenges insuring properties due to flood risks, which could have knock-on effects on property values and mortgage availability.”

Finally, Clive addressed the role of the insurance industry and governments in responding to climate risks, including Sasria’s efforts to establish a disaster pool for drought insurance.

“Individuals and companies need to take proactive steps to combat climate change,” he said, before quoting leaders Barack Obama and Emmanuel Macron to inspire collective action before it’s too late.

Thokozile Mahlangu, CEO of the Insurance Institute of South Africa (IISA), reflected on the IISA’s role as a thought leader in the insurance industry, focusing on skills development, professional growth and strategic partnerships. IISA’s membership has grown by over 40%, and the institute has added more than 20 corporate partners in recent months.

A key highlight was the Youth Accelerator Programme, which started in November 2023.

“The first cohort will graduate in October, with nearly 90% already absorbed into the industry,” said Thokozile. “A second cohort, focused on life insurance, has also commenced, supported by corporate partners like Sanlam and Absa Life.”

Thokozile also spoke about initiatives to introduce careers in insurance to younger generations, partnering with SAIA to host debates for students in grades 10-12, sparking interest in insurance as a career option.

IISA has also launched a mini-MBA in collaboration with TDI Academy, designed to equip future executives with skills to thrive in the digital age. Additionally, the association has introduced a Certificate in Digital Innovation (CDI) to help professionals navigate the digital environment effectively.

Rianet Whitehead of FAnews and The Insurance Apprentice was up next. She started her talk with some disappointing news – there will be no “Silver Fox” edition of The Insurance Apprentice.  But the team is investigating the possibility of doing a TIA Africa!

The first selection round has taken place in Johannesburg, with more rounds planned in other centres around the country.

Rianet’s presentation included a video interview on the TIA Talks podcast.

She concluded with a summary of highlights from the latest edition of FAnews:

“In our October edition, we explored several key issues shaping the insurance landscape today, topics like climate change, which is driving insurers and reinsurers to rethink their risk strategies, particularly as they start walking away from certain high-risk markets, underscore the growing challenges in the industry,” she said.

“We also highlighted the township economy, which is often overlooked – but increasingly this economy poses new opportunities for insurers to offer tailored solutions.

“Additionally, claims management is entering a new era with the adoption of AI and automation, making the process more efficient and hopefully customer friendly.

“Lastly, the construction industry offers bright prospects for growth, and with that, insurers need to adapt to meet the demands of this evolving sector.”

Our regular entertainment slot was covered by singer-songwriter Courtneigh Davids, who has been writing and singing songs since she was 16.

In her talk, Marcia Le Roux of SSP discussed how technology is transforming the short-term insurance industry in South Africa and Africa. She highlighted digital transformation, data-driven decision-making, AI, cloud adoption and personalised customer experiences as essential tools.

“By modernising legacy systems, insurers can streamline operations and enhance customer service,” she said.

Marcia emphasised the importance of cloud-based platforms for scalability, predictive analytics for improved risk management and embedded insurance for customer convenience.

“Embedded insurance solutions are on the rise, creating a positive shift in South Africa’s insurance climate and across Africa,” she said. “By integrating products directly at the point of sale, insurers can reach more customers and retain them more effectively. It’s about bundling insurance with other services, simplifying the purchase experience, and moving from a siloed to a combined approach.

“Additionally, mobile apps and self-service portals are empowering customers to manage their policies, initiate claims and access support instantly. This reduces reliance on call centres and significantly enhances customer satisfaction.’

Cybersecurity, regulatory compliance and automation are critical for operational efficiency, she said.

“The future of insurance depends on leveraging technology to provide personalised services, anticipate risks and protect clients,” she said.

In September, InsureTalk introduced a new segment that showcases the activities of the various insurance institutes within South Africa. This month’s institute insert was delivered by OLEA’s Bukhosi Khumalo, president of the Insurance Institute of Gauteng.

Bukhosi mentioned the organisation’s 113-year legacy of generating growth and connection within the insurance industry through education, transformation, networking and affiliation.

“Member and partner support is vital to help the IIG drive a healthy insurance sector that benefits economies and societies alike,” he said. “This year’s theme, #LinkUp, focuses on connecting people with ideas, opportunities and collaborations, bridging South Africa with the continent and the world.”

Bukhosi mentioned a major community outreach on 15 November, when 180 desks will be donated in Winterfeld. The IIG annual dinner will be held on 21 November at the Sandton Convention Centre.

“IIG remains dedicated to creating a platform for professionals to connect, engage and grow with exciting prospects for the future,” said Bukhosi.

Our final speaker was Lianne Byrne, who shared her transformative journey from corporate burnout to becoming a full-time travelling mom, digital nomad and life coach.

Through her story, she described her struggles with burnout, corporate pressures and breaking free from societal expectations.

“I think in a world where women lose themselves to the chaos of expectations, reclaiming yourself becomes an act of revolutionary self-love,” she said.

Her path included selling her belongings, adopting a world-schooling approach for her three children, and travelling across Southeast Asia.

Leanne explained her coaching philosophy, which places a lot of emphasis on self-care and boundary-setting, helping midlife women find purpose and balance by reclaiming their lives. Her experience highlights the importance of resilience, redefining success, and personal freedom.

“If you don’t love yourself, and if you don’t align yourself with what your true vision and values are, I think you will find yourself in a serious position.”

MC Christelle Colman closed proceedings by inviting all 5000 delegates on the call to attend InsureTalk Live, which takes place in Johannesburg on 14 November 2024.