There is strength in . en (FSP), Retha Botha (FSP), Leon Oosthuizen (MiWay) gh (FSP) to (MiWay), Retha

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  • There is strength in numbers.

    l

  • What is the FSP Solutions business model?

    We are match makers specialising in instant gratification. We

    introduce groups of insurers to groups of intermediaries at the

    click of a button. Our product offering is more comprehensive

    than any other independent aggregator in the intermediated

    space in South Africa. We are not an underwriting manager.

    We partner with insurers and sell their product via their rating

    engines at their scientifically calculated rates. We provide one

    entry point for the intermediary to instantly access multiple

    insurer offerings via our Internet based application, or our call

    centre.

    What dif ferentiates you from your competitors?

    There have been numerous attempts to copy our model.

    Still, our insurer partners write more policies through us than

    anywhere else where their rates are up against anti-selection,

    where that channel is not independent and objective. We do

    not influence the sale. Each insurer stands on equal grounds,

    the only dif ferentiator is each insurer’s individual rating

    methodology, brand and product offering. In most cases we

    do all the administration for policies written via our portal.

    Our intermediaries have one port of call to assist with all the

    administration.

    It hasn’t been easy to establish this model?

    We were probably ahead of the market when we started out

    in 2003 and as a result it was difficult to partner with insurers

    that had at that stage not really invested in scientific rating

    engines. Back then, Portfolio Management was the flavour of

    the month and we believed from the outset that those days

    were numbered. We have done countless demonstrations for

    insurers through the years. The hard slog has fortunately paid

    off during the last couple of quarters.

    What systems do you use?

    We have developed our own Internet-based application and

    are constantly enhancing the system. It is a paperless, voice

    logged administration application. We outsource our claims

    functionality to ECA (Electronic Claims Administration),

    FINANCIAL AND ADVISORY NEWS n e w s

    FAnews spoke to Pierre van Huyssteen,

    Marketing Director of FSP Solutions, to

    uncover the drivers behind their success.

    Match makers -

    CELEBRATING 40 PRODUCTS

    IN SEVEN YEARS

  • Santam appreciates the value of all our intermediaries, especially when

    they’re as innovative and passionate as we are. That is why it is such

    a pleasure to work with FSP. We’re confident that because of their vision

    and like-minded thinking, our relationship will go from strength to strength.

  • Albert Bergh

    Commercial

    Director

    FSP Solutions

    Pierre van Huyssteen (FSP), Retha Botha (FSP), Leon Oosthuizen (MiWay)

    Lucas Both ma (FSP), I

    ngrid Boreh am (Guard

    risk), Alber t Bergh (FS

    P)

    Lucas Bothma (FSP), Rene Otto (MiWay), Retha Botha (FSP)

    Lucas B othma

    (FSP)

    our preferred outsourced partner which has its own claims

    application interfaced with ours. ECA currently manages

    claims for Hollard, MiWay, New National and Santam.

    Our IT and that of ECA is in-house and on hand for our

    exclusivity.

    What services do you offer to intermediaries?

    We do partial or full life cycle administration and provide

    the intermediary 24/7 access to policy data and the

    system. The intermediary has one entry point to his entire

    client base, irrespective of the insurer offering. We assist

    with cancellation and client retention ratios and take care

    of all fulfilment and general administration.

    Why do insurers make use of the services of FSP

    Solutions?

    We are non-biased, independent and over time we have

    proven that our business model adds additional value

    to the existing value chain. We only deal with insurers

    that have rating engines and the process is a simple

    plug-and-play. We offer insurers innovation, integrity

    and business intelligence.

    And intermediaries?

    In most cases we do everything for the intermediary,

    besides sourcing the client. We are an independent,

    objective intermediated aggregator that gives the

    intermediary choice and access to the widest range

    of product offerings at a click of the button, or a quick

    call.

    What is the way forward?

    A couple of big players will have their rating engines on

    towards the end of the year to complete our bouquet.

    Some great system enhancements will be rolled out

    during this year, and we are implementing ITC rating

    scoring across the board. We look forward to increase

    our broker and insurer policy

    base exponentially.

  • Half AD

  • Lars Forssman (SCRM), Retha Botha (FSP), Steven Isaacs (Absa) Pierre van Hu

    yssteen (FSP ), Retha Botha

    (FSP), Lucas Bothma (FSP

    )

    T echnology and the web are only two of the factors

    that will influence the impact of the direct insurer

    on the corporate and commercial market currently

    monopolised by the traditional broker. The SME broker

    may find it more challenging to compete against the onslaught

    of the direct market, and more dif ficult to counter it with the

    inaccessibility of certain facilities and insurers, due to high

    production requests.

    Risk management

    Risk management is also increasingly becoming the

    responsibility of the broker and with current legislative changes

    and the impact of global warming, fresh categories of risk to be

    considered will definitely prompt a few insurers to expand their

    product offering.

    We have seen the launch of the Consumer Protection Act

    (CPA) and there will unquestionably be a spin-off in the

    commercial insurance environment. In partnering with a larger

    commercial portal, brokers will be kept in the loop about

    product enhancements and industry changes that influence

    the market.

    The right partners

    FSP Commercial strongly believes in the potential of brokers

    specialising in a certain market segment and being in the

    position to give competitive, yet sustainable options to their

    clients.

    Although some UMAs still made underwriting losses, the

    annual FSB report noted that the average niche insurer made a

    substantial underwriting profit in comparison with those of the

    traditional insurer. The key in the process is to select the correct

    partners with a respectable track record and underwriting

    margins. FSP Commercial currently deals with 26 partners,

    varying from insurers specialising in most markets, to the

    smaller UMAs that focus on a specific field in

    Accessibility

    The main benefit for a broker to partner with a facility like FSP

    Commercial is the accessibility to a variety of facilities where

    commercial lines can be placed, ranging from aviation and

    marine to plant, all risk and travel insurance.

    Premium pressures due to economic circumstances and the

    underwriting cycle make it more dif ficult for a broker to deal

    with only a small selection of product suppliers. With re-insurers’

    underwriting results also under pressure in the local market,

    there is also a need for placing collective policies. This might be

    challenging as the required experience and agencies need to be

    in place.

    Win-win situations

    Dealing with industry experts, whether specific insurers or

    underwriters, provides precious knowledge and information on

    certain lines where a broker might not feel comfortable with

    placing the business on their individual capability. When placing

    your clients via a group umbrella, it also provides you with the

    benefit of enjoying first-class service with the peace of mind of

    having a big brother to assist with rate negotiations and tiresome

    claims situations.

    The insurer or underwriter on the other hand, also has the benefit

    of lowering their operational expenses as there is an economy

    of scale saving with regards to marketing their product and

    servicing brokers.

    Uncertainty is a likely part of any sales process, so when times

    get tough you have to equip yourself with the necessary tools

    to advance your offering beyond those of your competitors. FSP

    Commercial has developed a refined distribution system that will

    supply brokers with unparalleled products and support.

    Albert Bergh

    Commercial Director

    FSP Solutions

    Commercial insurance: