“We need to become creative about insurance, looking for ART (Alternative Risk Transfer) methods such as Parametric Insurance arrangements. Clients are going to require tailor-made solutions where they retain some of the risk which is then mitigated by these ARTs. They provide the client with rapid liquidity following an insured event, and whilst sounding complicated, are very straightforward – improving risk transfer for all parties involved.

Intermediaries are going to be key in setting up these arrangements in consultation with their clients. Excellent knowledge of the risk, mitigation options and positive client relationships will be required – intermediaries can no longer operate as just the ‘middleman’ – additional skills are necessary to provide your client with the solutions they need.

My advice on navigating these uncertain times? Embrace the challenges and the opportunities to learn and be creative. We have entered a new era where you must adapt in order to remain relevant, and this creates the opportunity to reinvent insurance as we know it. There will be new role players in our business that we consult and bring into our teams – those that do this well will flourish. “

The full article, including contributions from various other industry bodies, can be found on page 14-17 of FA News, February 2024. [https://www.fanews.co.za/publication/pdf_304_fanewsfebr2024]