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BusinessDay www.businessday.co.za Thursday 15 September 2022
INSIGHTS
FIA INTERMEDIARY EXPERIENCE AWARDS 2022
FIA benchmark recognises and celebrates excellence The FIA Intermediary Experience survey sets a baseline or standard that financial services partners to intermediaries can use to find where they perform well, need to improve, set goals and measure their performance, as rated by the intermediary partner, over time. FIA CEO Lizelle van der Merwe explains that the value of advice through intermediaries came into the spotlight in the aftermath of the Covid-19 pandemic. “Consumer benchmarks during and post-Covid revealed the South African consumer has started re-evaluating their financial priorities and relied on expert guidance and support from professional intermediaries to navigate and better understand what exactly adequate risk provision is and how to structure a financial portfolio,” she says. This year’s survey was conducted by InSites and Dail Consulting in partnership with the FIA. Ineke Prinsloo of Dail Consulting says the baseline — or benchmark — is a reference point or a point of comparison from which organisations can draw inferences on what best practice looks like and what the delta is in performance to the best rated in the category or industry. “A trustworthy and sustainable benchmark such as
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. 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; and the degree to which the product supplier enables the intermediary to be successful through their value offering to the market and clients.
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or 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 pandemic. This year the awards were back, arguably bigger and better than before. Awards were given in a total of nine categories, ranked according to a comprehensive “whole of FIA membership” intermediary satisfaction benchmark survey. “This year, the awards were once again fiercely contested,” says Van der Merwe, adding that the winners are recognised as companies that go the extra mile for the FIA intermediary and their clients. 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
Commercial & Industrial Acceptances was the second runner-up. Sanlam Life Insurance won the Long-Term Insurer: Risk category, with Professional Provident Society Insurance and Brightrock as first and second runners-up. Allan Gray won both the Investment Product Lump Sum category as well as the Investment Product Savings category. Ninety One was the first runner-up while Sanlam Glacier was the second runnerup in the Investment Product Lump Sum category, while Sanlam Glacier and Momentum Wealth were runners-up in the investment Product Savings category. Momentum Metropolitan Holdings took top honours in the Employee Benefits Product category. The first runner-up in this category was Sanlam Insurance, while Liberty Holdings was the second runner-up. Bestmed won the Healthcare/Medical Schemes category, with Momentum Medical Scheme and Discovery Health the first and second runners-up.
Eight of the nine category winners scored an index mark above 80%, which is considered an exceptional performance on any benchmarking standard, says Ineke Prinsloo of Dail Consulting, who conducted the survey with InSites, on behalf of the FIA. In four of the categories the winner and two runner-up brands all achieved a score above the 80% mark. The inaugural underwriting management agencies category also opened its scorecard with a benchmark of 80%. The highest overall scores achieved across the benchmark were in the investment savings and lump sum categories, followed by the medical and nonlife commercial lines categories. Prinsloo says the financial services market in SA is regarded as a mature market, and insurance products in particular are fairly well penetrated. “The distribution of products to the end consumer primarily follows four paths: intermediary distribution, direct, banks and alternative or partnerships,” she explains. Among the trends noted in this year’s survey are the strength of the partnership
between the insurer and the financial intermediary and the fact the insurance industry has been slower to adopt digital solutions than the banking industry. “The expectations of customers in the more complex categories, including corporate insurance and employee benefits, are reflected in the lower scores achieved in these categories as compared to the rest, albeit only by single-digit margins,” she says. The employment landscape, encompassing the war on talent, attracting and retaining top talent shifts in working and employment patterns following the pandemic, brings an interesting focus to employee benefits as the one point of leverage and offering that the employer has to bargain with in future. Given that this category scored lower on the benchmark this year, it points to a rethink of how the intermediary and the insurer can work closer together to fill the gap in the market. “As always, this year’s winners set the benchmark for the level of product and service excellence that our members deem necessary to extend valued financial and risk advice to their clients,” said Van der Merwe. Suggesting that clients should ask their financial advisory or broker if they are a member of the FIA, she says advisory businesses that are members of the FIA belong to an elite business community that protects and promotes the role of financial advice. Members of the FIA gain valuable insights into the market and if advisory businesses are not members, their business may be at a disadvantage.
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
Lizelle van der Merwe … valued. 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 these thorny issues. “On the upside, we have a developed insurance industry and financial systems which make our markets accessible and allow us to attract foreign investment. From an FIA
perspective, we participate in global forums and are recognised as the representative of intermediaries and financial advisers throughout the continent.” Adding that its economic and social challenges are not unique to this country, she stressed that the industry must appreciate the grass is not always greener on the other side. “The world is in turmoil. Geopolitical risk has increased significantly in recent years and the economic fundamentals in many countries are not conducive to growth. SA’s inflation rate of about 7% is not the worst. In fact, we fare much better than most developed and developing countries,” said Tladi. “SA is not the only country facing challenges and we need to factor that narrative into our advice framework to clients,” she says. “It takes skill and professionalism to be able to understand and provide appropriate advice.” Her call for a renewed sense of patriotism acknowledges SA must move to align with the rest of the world to address climate change by doing its fair share, albeit with a clear understanding of its priorities. “Reducing unemployment, poverty and inequality are nonnegotiables and go beyond the need to ensure social stability as preconditions for investment and economic growth. There is no question the sustainability of our country relies on our ability to address social issues.”