FIA INTERMEDIARY EXPERIENCE AWARDS 2022

INSIGHTS

FIA benchmark recognises and celebrates excellence

the FIA Intermediary Awards has a foundation in a credible set of standards, with sufficient flexibility to adapt and be relevant as the operating landscape, intermediary and customer expectations evolve, says Prinsloo. The FIA benchmark celebrates and recognises excellence. However, it s far from a static concept. The methodology for these awards periodically needs to be reviewed and recalibrated to ensure it is fit for purpose and yields a relevant and comprehensive representation of the attributes that intermediaries most value in financial services partners they do business with.

The FIA benchmark study uses rigorous scientific processes to ensure the research is conducted properly and has limited error or bias. Since its inception, the intermediated industry has undergone substantial changes; new direct and digital players have entered, products and solutions have evolved, digital transformation has accelerated and financial customers needs have evolved.

delta is in performance to the best rated in the category or industry. A trustworthy and sustainable benchmark such as

All these factors play a role in re-evaluating the “what” and the “how” of the data collected for the benchmark. The 2022 process included an evaluation of the survey questionnaire, the method of analysis and the

feedback from members on the data collection method to reflect an improved user experience.

Prinsloo says the 2022 survey yielded the best participation to date: 2,964 FIA members participated with 6,875 ratings of product suppliers across the different categories provided.

This year saw the introduction of a fully digital and online research data gathering.

We used state-of-the-art digital platform capabilities that served a dual purpose: first to improve the experience, including recognising the time taken to complete the survey and, second, to safeguard the protection of information by assigning a unique identification number to the respondent to complete the link.

Members experiences are considered and ranked in importance across eight standards of excellence: the intermediary’s overall satisfaction with the product provider; their perception of service, product and relationship quality with the intermediary; how well the product provider aligns with regulations in treating customers fairly; the trust in the provider; effective complaint resolution; andthe degree to which the product supplier enables the intermediary to be successful through their value offering to the market and clients.

Awards honour leaders in financial services sector

• Annual event returns post pandemic bigger and better, writes Lynette Dicey

For more than 20 years, the Financial Intermediaries Association of Southern Africa (FIA), together with industry stakeholders, has undertaken a survey to evaluate the FIA intermediary experience of product provider brands and service

The survey and the awards resulting from the survey serve as a reminder of the complex relationships that exist between intermediaries also known as brokers and financial advisers and product providers as they join forces to deliver the best possible financial outcomes for clients. The intention behind the survey is to influence market behaviours that lead to better outcomes for clients. It not only measures the ability of product providers to pay claims

efficiently, but also measures other elements such as the overall service received from product providers.

FIA CEO Lizelle van der Merwe explains that for the FIA, service is about the quality of the relationship and the willingness to engage and support FIA members to underwrite risks fairly and to provide the best value for clients in the event of a loss.

In 2020 and 2021 the FIA decided to defer the FIA Intermediary Experience Awards and its accompanying survey over economic concerns linked to the global Covid-19

In the Non-Life: Personal Lines category, the winner was Santam, with Hollard Insurance as the first runner-up and Renasa Insurance as the second runner-up. Western National Insurance won the Non-Life: Commercial category, with Lombard Insurance and Hollard Insurance as first and second runners-up respectively.

In the Non-Life: Corporate category, Hollard Insurance took pole position, with Santam and Bryte Insurance the first and second runners-up.

In the Underwriting Manager (UMA) category, the winner was iTOO Special Risks, while CIA

Association aims to offer products that ‘deliver as promised’

The advisers, brokers and consultants who make up the FIA s intermediary membership are an indispensable part of the financial services distribution landscape.

The FIA serves as the de facto face’ of the product provider to the end-consumer, and it is imperative the product and service we receive from product providers empowers us to offer fit-for-purpose, valued financial solutions that deliver as promised, explains CEO Lizelle van der Merwe. The primary purpose of the FIA is to guard, develop, promote and represent professional advisory and intermediary businesses in the financial services industry.

The association is made up of a community of professional businesses that firmly believes clients benefit from independent financial advice and intermediary services. It also maintains that professional intermediaries play an important role in the South African economy given they are instrumental to significant economic activity and much needed job creation. Consider their role, for example, in advising clients impacted in KwaZulu-Natal by the riots in 2021 or the floods which occurred in 2022. Professionalism and transformation are imperatives for the sustainability of the intermediary model. The association recently unveiled a brand refresh which better reflects who it is, why it exists and how it adds value to its various stakeholders. The brand refresh, explains FIA president Butsi Tladi, takes the association a step forward in affirming its position as a trusted source and preferred voice for the advisors and intermediaries in SA. Our strategy aligns to the strategic priorities of our country and our sector. It acknowledges the progress we have made while at the same time appreciating we are on a journey that requires our commitment she says. The FIA s strategy relies on three pillars. The first pillar focuses on professional and organisational development. The increasing complexity of our industry, products and solutions requires us to continuously improve our skills and knowledge, says Tladi. At the same time, we need to strive to influence our members to adopt sustainable, responsible transformation plans. The second pillar focuses on advocacy and representation. The FIA is unapologetic about its

desire to be included in all industry engagements relevant to the sustainability of the intermediated model.

The third pillar is centred on the financial sector and market information. “The FIA is rapidly becoming the point of reference and source of relevant and material financial sector and market information that can assist in making informed contributions to the sustainability and growth of FSPs and of the financial services industry, says Tladi.

Speaking at the FIA s most recent AGM, Tladi said many people make the mistake of being too internally focused, in the process losing perspective around the opportunities available in SA in comparison to other countries.

Given a world in turmoil we need to spend time introspecting before making value judgments on crucial issues in conversation or on social media. We need to be reminded about what makes SA the incredible country it is and our ability to pull ourselves from the edge and correct our course.

Acknowledging the country s challenges including load shedding, high levels of unemployment, crime and corruption, she pointed out that there are encouraging moves and commitments to addressing

Empowering generations to live confidently.

Sanlam Individual Life is honoured by the recognition from the Financial Intermediaries Association of South Africa (FIA) as the 2022 Intermediary Experience Award Winner in the category: Long Term Insurer Life/Risk.

The last two years of the pandemic demonstrated the benefits of risk cover and we are deeply grateful to our intermediaries for their role in advising clients. Your commitment to empowering your clients to live with financial confidence has helped us make a meaningful difference to the lives of many South Africans.

We thank you for this acknowledgement and will continue to work alongside intermediaries, to ensure that our clients are supported with valuable financial advice and solutions that give them the peace of mind to live with confidence.

Duties of intermediaries in

savings and investment space

doesn t believe that will remove the need for objective advice and a strategy for formulating a long-term financial plan. Similarly, advice and expertise around tax and estate planning remain important.

Conceding there are no guarantees and nobody can predict for certain what the

Creating smarter insurance solutions

on track through challenging market periods.

“One of the biggest benefits of using an investment platform, and even a discretionary fund manager, is that intermediaries are freed up to spend time with

their clients, he says Glacier by Sanlam was the first runner-up in the Savings Investment Product category and the second runner-up in the Lump Sum Investment Product category at the awards. Given a world that is in flux and nervous investors, there is a need now for intermediaries with the right skills to step in and act as coaches, he says. “Uncertainty tends to produce opportunities for those who are alert to them. There is no question that digital transformation is changing every aspect of how we do business. However, it will be the intermediaries and product providers who seek out the opportunities rather than shy away from them who will be the ones who survive.” While investors today are more educated and have access to more information than ever before via online channels, he

Brokers ‘play pivotal role’

Businesses prepare for a changing risk landscape

The risk landscape has seen fundamental changes in the past few years. The World Economic Forum Global Risk Report for 2022 says the biggest concern is around societal and environmental risks. What is clear, however, is that markets will continue to be volatile and businesses need to expect the unexpected. In this environment, foresight

MIND

Intermediaries are perfectly positioned to become risk advisers and help make the cost of insurance sustainable, while also creating true peace of mind for clients, adds Coutts. Santam expects to rely on its intermediary partners more than ever in the future, particularly as they go beyond being brokers to becoming risk advisers. This means, he says,

ensuring insurance becomes a holistic solution to manage risk.

As we move into an increasingly uncertain future, intermediaries will be differentiated not just by these factors, but also by their risk and advice tools and early detection mechanisms that enable risk prevention. Intermediaries who are able to help their clients understand and avoid risk will significantly reduce the cost of insurance for their clients and provide peace of mind.

The incrementally successful intermediaries, adds Coutts, are likely to be those who still provide leading advice and tailored customer solutions, while also leveraging the marketing reach, service efficiency and client flexibility that digital solutions enable.

Karin Muller, retail head at Sanlam Individual Life, the winner of the Long Term Insurer in the Life or Risk space, reveals that the business has long been based on mutually beneficial relationships and engagement with intermediaries. They are

exceptionally valued in our business and we recognise that without them, we would not be where we are today. Advice, she adds, is a cornerstone of enabling clients to be properly covered.

“It’s not only paying claims that matters; clients need to know that they have sufficient and appropriate cover for their unique and individual needs and this is only possible through the partnership of the people who advise them our intermediaries, says Muller.

CHANGING LANDSCAPE

Justin Naylor, MD of iTOO

Special Risks, the winner of the Underwriting Management Agency category, points out that the risks both individuals and businesses face today are changing. In SA, Covid-19, unprecedented riots and the floods that occurred in KwaZulu-Natal earlier this year are some public examples of a changing risk landscape where South Africans have faced a series of catastrophe events like never before.

However, there are many other risks that have not had the same publicity, but that have the ability to impact clients significantly, he adds.

Around the world there is a ransomware attack every 11 seconds. SA has the thirdhighest rate of cyberattacks in the world. The number of kidnappings in this country per year has doubled since 2010. According to the SA crime statistics released last month, commercial crime is at its worst level in five years. In the corporate space there are about 120 different pieces of legislation directors of a South African company have to face. A failure to comply with these could lead to legal action against directors in their personal capacity. All of these risks need to be covered.

Naylor says the changing risk landscape means conventional insurance covers alone are no longer relevant.

“As the needs of client’ s changes, the expert advice of an experienced intermediary is essential to advise them about which risk to insure.

FUTURE CLIENTS HAVE GROWN UP WITH THE INTERNET AND ARE COMFORTABLE ENGAGING DIGITALLY. THIS OPENS THE DOOR TO GLOBAL OPPORTUNITIES

Appropriate

FIA chair: Employee Benefits Exco.

Costs and technology among challenges facing insurers

Intermediaries have traditionally played a central role linking product suppliers to customers. But, despite playing a critically important role in the insurance value chain, they face a growing number of challenges including demonstrating their value, and

the business consultants are also responsible for onboarding employer groups and assisting with urgent inquiries. Bestmed is a selfadministered scheme which means we handle all of our administration internally. This gives our business consultants access to the right people to take care of urgent authorisations or claims, says Dlamini. Members of medical schemes want the peace of mind that they have cover when they need it, points out McHugh. Consumers place significant value on a medical scheme that can show a sound financial track record and good solvency levels. The second biggest consideration that is then applied is affordability of cover.

McHugh says that having one of the youngest average member age profiles provides Momentum Medical Scheme with a stronger longer-term outlook when compared to many of its competitors, while also allowing for lower annual contribution increases.

Medical schemes are having to factor in a potential increase in new viruses and possible future global pandemics. Also, global socioeconomic pressure related to the general cost of living has further highlighted the need for more affordable health care cover solutions.

Intermediaries operating in the health care space are faced with the fact that medical aid is increasingly being seen as a grudge purchase. “The current economic climate is making it difficult to sell medical aid due to affordability. This is where an intermediary s experience and

expertise comes into play as they are able to do a needs analysis and, taking the client’ s budget into account, make a recommendation on a suitable plan, explains Dlamini. It s important that medical schemes continue to refine their benefit offerings to ensure they appeal to young, active individuals and families who contribute to the long-term sustainability of schemes.” He says Momentum Medical Scheme s entry level option, Ingwe, continues to grow. Health insurance solutions are able to unlock access to quality affordable health care to segments of our population who