InsureTalk62: The future of insurance is human… enabled by technology

InsureTalk62 marked the final edition of the monthly insurance webinar in the current CPD cycle. The event was sponsored by Old Mutual Insure (OMI) with regular contributions coming from the Financial Intermediaries Association of Southern Africa (FIA) and FAnews/The Insurance Apprentice.

OMI’s Jaco Brittz opened proceedings with a talk entitled “Intelligent evolution vs broker relationship power”.

Jaco framed the discussion as a false choice between technology and human relationships. He argued that the industry often treats AI and broker relationships as opposing forces: one side representing speed, automation, scale and data, and the other representing trust, empathy and judgement. His central argument was that asking which one will “win” is the wrong question.

“The future belongs to brokers who combine both,” he said. “The broker who will win in the future is not necessarily the most digital broker, but it would be the most trusted broker who is actually enabled by technology.”

He then explored how AI has evolved. A year ago, the focus was largely on drafting emails, comparing documents and summarising content.

“Now the conversation has shifted towards deeper capabilities such as ‘deep research’ and ‘agentic AI’,” he said.

Jaco described deep research as having a team of researchers pulling together fragmented information, while agentic AI helps complete tasks across multiple systems under human oversight. Importantly, he stressed that these tools prepare brokers rather than replace them.

“AI can prepare the work, but the broker owns this relationship.”  

To make the point practical, Jaco walked through several broker scenarios. During difficult conversations, AI can gather history, identify concerns and prepare talking points, but the reassurance still comes from the broker.

He also described the “drifting client”, where AI may detect subtle signs such as reduced engagement or missed touchpoints before a broker notices them. Similarly, AI can identify gaps or changing client circumstances that may signal new risks. However, he repeatedly stressed that technology should feel like care rather than surveillance.

“AI can spot the signal, but the broker has to rebuild the connection.”  

Jaco concluded by warning against blindly embracing AI. He referenced research showing that AI can improve speed and quality when used correctly, but can also produce dangerous outcomes when used outside its strengths. He gave the example of a client using AI to reduce insurance costs without understanding broader consequences.

His message was that AI should support judgement rather than replace it.

“The broker of the future arrives better prepared, communicates more clearly and strengthens relationships by using technology responsibly,” he said. “AI is powerful when it supports judgment, but it becomes dangerous when it replaces judgment.”  

The next speaker was OMI’s Faithful Kumbula. Her topic, “Third-Party Risk & Outsourcing: Who is Really Accountable?” focused on the growing importance of third-party risk management and outsourcing in an increasingly interconnected insurance environment. Picking up on the theme of technology and accountability raised earlier, she argued that while technology and external partners can enable businesses, accountability ultimately remains with the organisation itself.

“Third-party risk emerges when organisations rely on external providers to deliver services, creating exposure to compliance, reputational, strategic and operational risks,” she explained. “Business models have shifted significantly because one business alone cannot be responsible for delivering customer value, making ecosystems and partnerships essential.”

Faithful illustrated this by contrasting examples of failure and success. As an example of failure, she referred to the outsourced South African Police Service healthcare arrangement, where weak governance and alleged irregularities resulted in significant delivery failures despite substantial expenditure. By contrast, she highlighted OMI’s partnership with TRS in 2018, which succeeded because expertise gaps were addressed while accountability remained clearly defined.

“Outsourcing should not be seen as handing over responsibility,” she said. “Successful assurance in outsourcing is not about transferring responsibility but expanding capability.”  

Faithful then turned specifically to the relevance of third-party risk matters to brokers.

“While insurers may carry formal regulatory accountability, brokers often carry the greatest practical consequences because they are the visible face to customers,” she said. “Clients rarely distinguish between insurers, brokers, systems providers and service partners behind the scenes. If claims are delayed, data is compromised or service breaks down, the broker experiences the damage first.

“The one that is customer-facing suffers the most because customers see only one experience, even though many players contribute to delivering it.”

She concluded by arguing that governance should not be seen as an obstacle or compliance exercise but rather as a business enabler.

“Strong governance supports faster service, operational efficiency, better customer experiences and specialised expertise,” she said. “Instead of viewing governance as red tape, organisations should build frameworks that evolve alongside technology, AI and new partnership models.”

Her closing message centred on collective responsibility across ecosystems.

“Although regulators may focus on insurers, sustainable success depends on a culture of shared accountability because weaknesses in one part of the system create a ripple effect across everyone involved.”

Following Faithful was Samantha Williams, head of legal at the FIA.

Sam provided a regulatory update covering several significant developments affecting the South African financial services industry. She spoke about the Conduct of Financial Institutions (CoFI) Bill, which has now formally been submitted to Parliament following Cabinet approval in March 2026, with a consultation process to follow.

“The FIA has requested an extended comment period because the industry has not seen the full bill since 2021,” she said. “We expect transition period of around three years after implementation.”

Sam also touched on developments around employment equity, BBBEE amendments, POPIA and anti-money laundering obligations, stressing the need for brokers to remain compliant and vigilant as South Africa prepares for future evaluations.  

The second part of Sam’s update focused on the World Federation of Insurance Intermediaries (WFII) meeting hosted in Cape Town, which she described as a significant milestone.

Themes that emerged from global discussions at the meeting included:

• AI
• The affordability of digital transformation
• Protection gaps
• Regulatory burden
• The ongoing debate around the value of intermediaries.

She said that many of the challenges faced by local members are mirrored internationally.

“The questions our members are asking about their role, their viability, their regulatory environment are the same questions being asked in Europe, Latin America, and Asia Pacific,” she said. “Global collaboration and shared learning are becoming increasingly valuable resources for the industry.”

Next up was FAnews editor and founder of the The Insurance Apprentice, Rianet Whitehead. Rianet opened by highlighting the major themes currently shaping the non-life insurance landscape. Climate risk, infrastructure pressures, cyber threats, renewable energy, claims trends and affordability continue to dominate industry discussion, she said.

Recent severe weather events in the Western Cape and along the Garden Route served as a practical reminder that risk is becoming increasingly visible and interconnected.

“These risks are no longer theoretical,” she said, “but are affecting homes, businesses and communities directly.

“Clients should not be left guessing about their cover. They need guidance around increasingly complex questions relating to exclusions, excesses and changing risks. These are not small admin issues. They are trust issues.”  

Rianet also provided an update on current industry developments, including ongoing regulatory discussions around CoFI, AI, compliance and data privacy, before turning attention to the latest season of The Insurance Apprentice.

“This season has moved beyond presentation skills, focusing more strongly on education and practical understanding. Contestants are tackling real client challenges and regulatory debates.”

She stressed that insurance needs to become more relatable and human, particularly for younger people entering the industry.

Shifting to the importance of brokers, Rianet concluded that they sit at the centre of a rapidly changing risk environment and have an important role in shifting perceptions from insurance as a grudge purchase to insurance as a tool for resilience, protection and dignity.

CN&CO’s Blake Dyason was up next with a breakdown of two CN&CO projects that are close to his heart: The Insurance Directory and The Insurance Conference, which was recently announced on the CN&CO blog (and elsewhere).

“The Insurance Directory began during Covid as a practical solution to a growing problem,” he said. “Brokers working remotely needed quick access to underwriters and product information, and what started as a simple website rapidly evolved into a much larger industry platform.”

He said the goal was to create a central place where brokers could research products and services while giving smaller niche underwriters greater visibility.

“Today, the directory hosts over a thousand products, companies and services, allowing users to connect directly with decision-makers rather than generic contact channels,” he said.

He also showcased recent improvements, including a redesigned website, updated dashboards and a new web-based app that makes access to information quicker and easier.

“It’s great to see how The Insurance Directory has grown from a small little website as a passion project online into a significant industry resource.” 

Moving on to The Insurance Conference 2026, which takes place in August, Blake explained that it has been designed around meaningful relationships and business outcomes rather than simply creating another large industry event.

“Drawing on years of experience in insurance and events, the CN&CO team has curated a two-day experience that combines top-notch presentations, networking opportunities and activities such as trail runs, breakfasts and wine tastings,” he said. “The event will remain intentionally intimate, focusing on a smaller number of delegates and sponsors to create stronger connections and more valuable conversations.”

Up next was OMI’s Nico Knop with his presentation entitled “Understanding Replacement Value Conditions” – specifically within the fire section of insurance policies. Nico used his talk to explain why disputes frequently arise and why this topic has become particularly relevant amid recent storm and catastrophe claims.

“Many misunderstandings stem from differences between client expectations and how the clause actually works,” he explained. “Clients often expect a full cash payout based on replacement value, whereas the policy operates within defined conditions and timelines.”

He reminded guests that insurance remains based on the principle of indemnity, meaning the insured should be restored to the same financial position they were in before the loss and not be placed in a better position.

“Importantly, if replacement value conditions are not met, claims can revert back to indemnity principles,” he said.

Nico also spent considerable time explaining practical challenges around reinstatement projects, including delays, underinsurance, betterment and project management complexities.

“Replacement value does not mean unrestricted ‘cash for new’,” he said, “but rather replacing damaged items with equivalent like-for-like alternatives. Upgrades and improvements can be accommodated, but only through discussion and with the understanding that additional costs sit with the insured.”

His key message was that communication and planning remove much of the friction around these claims. He encouraged brokers to ensure that sums insured are accurate, expectations are set early and project processes are clearly understood.

“It’s always better to have that conversation now than to have that conversation about a twenty or thirty percent average a year down the line.”

Langelihle Nkabinde, compliance officer at Purple Group, unpacked the upcoming CoFI Bill, describing it as a major shift in the South African regulatory landscape and explaining that the industry should already be preparing for its arrival.

“CoFI aims to move away from rules-based, tick-box compliance and towards customer-focused outcomes and fair treatment principles,” he said. “This is significant because the principles are being embedded in primary legislation, giving the regulator stronger authority and broader oversight.”

Treating Customers Fairly (TCF) emerged as a recurring theme throughout his presentation, with the scope extending beyond retail customers to include institutional and corporate clients. He also highlighted proposals around financial inclusion, retirement reform and wider regulatory coverage that will increasingly shape how institutions operate.  

Lange stressed that CoFI will require more than policy changes or compliance exercises.

“Financial institutions will need to rethink culture, governance and accountability structures from leadership level downwards,” he said. “Boards and executives will have direct responsibility for conduct outcomes, customer fairness and organisational culture, while firms will need to strengthen oversight, product governance and internal processes.”

His message was that organisations should not wait for the legislation to be enacted before taking action.

“Financial institutions should start preparing now for CoFI because the shift towards customer-centred conduct and stronger governance expectations is already becoming clear.”

Thus ended the 62^nd edition of InsureTalk. The next instalment will take place on 18 June 2026 at 10am. BOOK HERE.

To watch the recording of InsureTalk62 on YouTube, click on the video link below.