InsureTalk Live takes a hard look at modern risks

CN&CO Events’ second InsureTalk Live event took place in Johannesburg on 14 November 2024. It was a festive occasion drawing scores of in-person attendees, as well as more than 2000 online delegates.

The event was headline sponsored by Bryte Insurance, with Global Choices and MiWay coming on board as sponsors. Our MC for the day was EasyEquities’ Carly Esterhuizen.

First at the mic was Juan-Pierre Holmes – or, as he prefers to be called, JP – from Bryte Insurance.

JP’s talk explored the nuanced differences between change, transformation and disruption, particularly in the context of organisations and the insurance industry. He outlined the importance of understanding these concepts to adapt effectively to the rapidly evolving global environment.

Change, he said, involves incremental adjustments to existing processes or products, offering short-term modifications without altering the core of a business; transformation is a fundamental shift, resulting in something entirely new, like a caterpillar becoming a butterfly; and disruption redefines industries, creating new business models that challenge existing norms, such as Uber revolutionising transportation without owning vehicles.

JP introduced the term “polycrisis” to describe interconnected global challenges – like climate change, economic uncertainty, pandemics and geopolitical instability – that reshape industries, including insurance.

“These crises require both change and transformation to remain competitive and relevant,” he said.

Impact on insurance

“The industry is facing higher costs due to reinsurers withdrawing capacity and increasing pricing, stricter regulatory frameworks – ESG requirements, for example – and shifts in customer expectations,” he said. “Organisations must adapt product offerings, rethink pricing models and improve client experiences to prevent competitors or alternative industries from seising market share.”

JP highlighted the need for insurers to transform by leveraging emerging technologies like AI and automation to improve operational efficiency and customer engagement. He used real-world examples, such as public transport systems in Europe and innovations in mobility (e.g., driverless cars and bike-sharing), to illustrate how transformation reshapes industries and challenges traditional business models.

“Organisations need to recognise if they are undergoing superficial changes or true transformation,” he said. “They should also be open to embracing disruption as an opportunity rather than a threat, thereby setting industry standards and achieving long-term success.”

JP concluded with a call to action: “Leverage disruption positively to innovate and secure a competitive edge in an uncertain future.”

JP’s talk was a reminder that while change is momentary, transformation is enduring, and becoming a proactive disruptor opens up boundless opportunities.

IISA CEO Thokozile Mahlangu gave her traditional presentation live on stage with Carly facilitating. She highlighted the vital role of IISA as a professional body dedicated to accrediting and developing insurance professionals. Her talk centred on the role and value of the IISA, requirements for membership, addressing the skills shortage and opportunities for member engagements.

Thokozile concluded by encouraging professionals to explore membership opportunities and invest in their development.

“Accreditation is key to staying relevant and connected in the insurance industry,” she said.

Bryte Insurance’s Noluthando Ngqandu discussed the current global and local risk landscapes, highlighting their impact on the South African insurance industry. She explored topics ranging from climate change to geopolitical instability and their impact on insurers, brokers, and customers. These were her key points:

Global risk landscape

Noluthando spoke in detail on the following elements that impact on risk around the world:

Economic challenges
Cyber attacks
Extreme weather and natural disasters
Geopolitical instability
Water and energy crises
Climate change and resilience

Specifically, Noluthando stressed the importance of insurers supporting resilience efforts through education, innovation and product development to address the global protection gap, which currently stands at $234 billion. Only 35% of losses from recent natural catastrophes were insured.

Local risk context

“In South Africa we face our own challenges including rising energy costs, infrastructure failures (e.g., Eskom), and water crises,” she said. “These exacerbate inequality, affect food security and strain businesses.”

She says brokers and insurers play key roles in addressing these risks.

“Brokers play a crucial role in raising awareness of risks, advising clients, and facilitating communication between insurers and customers,” she said. “They help unpack complex products and align them with customer needs.”

She said insurers need to focus on risk assessment and product innovation.

“This will help to address evolving risks such as affordability, climate change and compliance pressures.

“There’s also a need to educate customers to navigate risks effectively.”

There are many steps that the industry can take to alleviate the strain that these risks place on society. These include innovation and collaboration, and resilience as a competitive edge.

“By addressing risks like climate change and leveraging technologies like AI, insurers can create new products and solutions tailored to diverse customer needs,” she said. “Furthermore, resilience to global risks is not just a necessity but also a commercial imperative. Addressing the protection gap presents opportunities for growth and differentiation.”

Rianet Whitehead, co-owner of FAnews and founder of The Insurance Apprentice, provided an engaging overview of key industry trends and initiatives, with a focus on challenges and opportunities for brokers and the broader insurance sector. Here are the highlights. She focused on digital transformation, regulatory pressures, mergers and networks, climate change and cybersecurity.

She also highlighted the success and challenges of The Insurance Apprentice, an initiative designed to showcase the insurance industry and attract young talent.

“The show will be aired on television next year, with its first episode scheduled to be screened on 19 June on SABC 3,” she said.

Next year’s season will feature eight episodes instead of the usual seven.

Another Bryte Insurance speaker, Christopher Appanah, focused on the imperative of “going green” in the insurance industry, framing it as not only an environmental necessity but also an economic and strategic one.

“Climate-related risks are projected to reduce global economic output by 11-14% by 2050 if temperatures rise by 2-2.6°C,” he said. “This makes going green an economic and sustainability issue.

“Insurers are uniquely positioned to influence environmental change through risk assessment models, product innovation and incentivising green behaviour among clients.”

Christopher listed some of the key factors and outcomes of going green:

Environmental awareness: Integrating climate risks into underwriting and creating products that encourage green practices, such as incentivising solar energy use.
Infrastructure transition: Replacing outdated systems with resilient, green alternatives. “Swiss Re, for example, aims for carbon neutrality by 2030,” he said.
Product development: Designing insurance products that reward environmentally friendly behaviours.
Behavioural change: Using insurance policies and pricing to influence clients toward adopting sustainable practices.

Not going green could have dire consequences.

“Environmental decay, business instability, unemployment and poverty will increase, undermining economic systems and making risks harder to predict and price,” he said. “A growing climate-related protection gap threatens the insurability of risks, with South Africa particularly vulnerable to global reinsurers’ pricing shifts.”

He said implementing operational green models, investing in green supply chains and encouraging alternative production methods are some of the ways organisations can approach the crisis.

“Zurich Insurance, for example, reduced its carbon emissions by 73% purely through operational changes,” he said.

The renewable energy sector is projected to attract $5.7 trillion by 2050, offering insurers opportunities to innovate and support sustainable projects.

“Green management not only mitigates risks but creates pathways for new products, improved health outcomes, and sustainable economic growth,” concluded Christopher.

Kate Weaver-Gibbs made a welcome return to the InsureTalk Live stage after wowing guests with her story of triumph and resilience at InsureTalk Live 2023. (We subsequently featured her in an edition of The Ink Link.)

Kate delivered a heartfelt talk on the critical importance of mental well-being support in the insurance value chain, emphasising the industry’s responsibility to support both client and employee mental health. Here are the key points from her address:

“Insurance is built on relationships, and society cannot function without it,” she said. “Beyond policies and claims, the industry has a higher purpose of care and connection. Good relationships are founded on clear, honest communication, which extends to how insurers interact with both policyholders and employees.”

Kate said mental health is often misunderstood, seen negatively and under-prioritised despite being critical for people to cope with life’s challenges, work well, and contribute to society.

“After traumatic events, while physical scars may heal and claims are settled, the emotional and psychological impact lingers,” she said. “Mental well-being support is essential to help people move forward.

She called on the industry to recognise the prevalence of mental health issues, especially in South Africa, where:

25% of employees experience depression during their working lives, with only 15-25% of them seeking help.
Suicide accounts for 60% of mental health claims, while depression- and anxiety-related claims are rising.

“Workplace factors like job insecurity, automation, and stigma around mental health often prevent employees from seeking help,” she said, adding that only one in six people disclose their mental health struggles to their managers.

Mental well-being in the insurance value chain

Kate believes incorporating mental well-being support into the claims process can transform the insurer-policyholder relationship from a transactional one to a partnership built on care.

“The industry must own the responsibility of promoting mental well-being for clients and employees, taking proactive steps to provide accessible, affordable, and anonymous support,” she said, adding that employers should create environments where employees feel safe to share concerns without fear of reproach.

“Mental health support systems, such as confidential conversations or access to resources, benefit both employees and the organisation,” she said. “Trauma and mental well-being services, like those offered by Global Choices, exemplify how insurers can elevate their role in society by enabling those they protect to contribute meaningfully.

“Asking simple questions like ‘Are you okay?’ establishes connections that enhance workplace culture, client relationships and overall societal well-being.”

“It’s okay to be not okay,” she concluded, “but we must support one another in navigating life’s challenges.”

The insurance industry, grounded in relationships, has a unique opportunity to lead the way in prioritising mental well-being for a healthier, more resilient society.

Siyakha Maiye from MiWay offered an engaging defence of everyone’s bugbear – governance and compliance measures in the insurance industry. His stated aim was to shift perceptions of “red tape” in the industry as a frustrating obstacle into an essential component for ethical and effective operations.

“The term ‘red tape’ originates from 17th-century document binding practices and has evolved to symbolise bureaucracy,” he said. “Governance is often viewed as a barrier to innovation, but it actually plays an important role in ensuring legal and ethical business practices. This especially true in South Africa where, given our low financial literacy rates, governance is essential to protect vulnerable clients.”

He outlined several key regulations and their importance in the industry and society. These included:

Protection of Personal Information Act (POPIA)
Financial Advisory and Intermediary Services (FAIS) Act
Treating Customers Fairly (TCF) and Policyholder Protection Rules (PPR)

“Governance officers are often seen as barriers,” he said, “whereas we actually help businesses navigate legal and regulatory hurdles to implement innovative ideas ethically and sustainably. Compliance teams should be viewed as partners who enable businesses to succeed while protecting customers.”

Siyakha shared a delightful personal anecdote of himself as a young boy watching TV with the sound for hours while his father negotiated his insurance with a broker.

“Innovation has made contracting easier, but the ongoing need for regulatory oversight remains to ensure fairness and transparency.”

Siyakha concluded by encouraging collaboration with governance teams to develop innovative solutions while adhering to regulations, ensuring the industry operates as a responsible corporate citizen.

Our final conversation of the day was with Lily Howard of Barker Insurance, whose book The Personal Touch was recently published by CN&CO.

Lily is a claims professional with 46 years at Barker Insurance. She shared insights from her memoir, which reflects on her career, personal experiences, and the South African insurance industry.

InsureTalk Live marked the final instalment of the InsureTalk franchise for 2024. Our next webinar will take place on 20 February 2025 from 10am to 1pm. You can book for the first five InsureTalk sessions in 2025 here.

If you would like to watch InsureTalk Live 2024, click on the YouTube video link below: