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Financial Services
Tuesday, July 1, 2008
Managing risk

To support brokers in their efforts to increase their commercial business, Santam is currently in the process of developing specific products for growth industries as well as systems that will offer brokers additional information for the purposes of determining and managing client risk.
Explains Quinten Matthew, Head of Broker Services, “We are currently developing specific products for the agricultural and tourism industries, and, in the second half of this year, will concentrate on products for the construction, transportation and services industry.
“We are also rapidly moving towards a scientific rating system that incorporates the client risk profile with reference to the segment and client history and which will allow brokers to offer accurate pricing for each type of risk.
“As Santam is an intermediary-driven organisation, our role is to provide brokers with the tools to assist them to offer a better service to their clients. This includes quicker access to Santam in order to speed up the response time for brokers in providing quotations and issuing policies,” he says.
He believes the greater complexity of the risk faced by commercial clients relative to personal clients provides brokers with significant opportunities to offer ongoing and professional assistance and advice on risk management. By building relationships with commercial clients through the provision of quality service based on sound risk management principles, brokers will benefit from improved client retention and a significant increase in their commercial book.
He points out that commercial clients are already pre-disposed towards the concept of risk management. “Commercial insurance is neither as price-sensitive nor as commoditised as personal lines insurance. As the risks tend to be more complex, the opportunity exists for brokers to develop close long-term relationships with their clients, providing constant advice on ways and means to manage and reduce the risk,” says Matthew.
“It is very important for brokers to participate and network in business forums as a means of marketing their services. It is equally important that the service provided is tailor-made to suit the needs of clients. By providing professional advice and flexibility, offering alternative solutions, removing the hassle factor from insurance and simplifying the insurance jargon, brokers’ efforts are bound to meet with success. And as success is contagious, brokers should make a point of selling their success stories whenever the opportunity arises,” he adds.

Copyright © Insurance Times and Investments® Vol:21.6 1st July, 2008
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