Product providers vie for industry insurance and investment awards

Stakeholders in the South African financial services industry are set to gather for the much anticipated 2013 Financial Intermediaries Association of Southern Africa (FIA) Awards Gala Dinner to be held at the Sandton Convention Centre in Johannesburg on30 May 2013.

The annual FIA Awards is acknowledged as the leading measure of product provider excellence based on an independent survey of practicing finance and risk advisors – all members of the FIA. An award is issued in each of nine industry categories to include the four ‘core’ disciplines in the financial advice space, namely employee benefits, financial planning (which includes risk and investment advice), healthcare and short term insurance.

According to Justus van Pletzen, CEO of the FIA, the awards afford product providers valuable feedback with regards to how their distribution and administration services are received by the financial and risk advisor community at large. “We are keenly anticipating this year’s result to learn more about how our members react to the on-going changes in the financial services landscape.”

Over the past year finance and risk advisors have had to adapt to tougher regulatory requirements – through the introduction of regulatory examinations for key individuals and representatives – and an explosion of new direct players in the insurance market.

“It will be interesting to see how our finance and risk advisors react to increased competition and the higher compliance burden in terms of acknowledging those product providers that give them the best overall support,” says Van Pletzen.

The main objective of the FIA benchmark survey is to determine and recognise South Africa’s top performing product providers, independently rated on intermediary satisfaction, says Pieter Aucamp, CEO of Bluestream Research. “What distinguishes the FIA Awards is the consistent methodology that has been applied, improved upon and perfected over the eight consecutive years that Bluestream has been involved in the survey.”

He adds that the 15th FIA Awards is one of the most comprehensive total industry broker satisfaction benchmarks produced in South Africa. “An unprecedented 7565 contracts were evaluated over a 10-week period. The survey team placed 23500 telephone calls to complete the required interviews, which each took approximately 13 minutes to complete.”

In order to determine the best product provider in the country, survey participants are asked to rate providers based on product quality, service quality, relationship quality and overall satisfaction. Product providers are then assessed and ranked under each of these categories before a final score is computed.

This is a special time for the FIA, says Van Pletzen. “We are celebrating five years as a member representative body as well as recognising the product providers that go the extra mile to enable our members to do what they do best – deliver exceptional financial and risk advice to the consuming public.”

“As we prepare for the 15th consecutive awards ceremony we can proudly claim the event as an institution in the domestic financial services landscape,” concludes van Pletzen. 

Comments from last year’s winners

Short-term Insurer of the Year – Corporate: ETANA

Nash Omar, Managing Director, Etana, and Andre van der Merwe, Head, Etana’s Corporate Centre of Excellence

Did you have a specific strategy to win the award?

Etana’s strategy is always to deliver the extraordinary and the best to our brokers.  That’s our daily strategy and receiving a positive vote from brokers has been a result we truly appreciate and enjoy. The ‘strategy’ was to provide brokers with exceptional solutions and localized service that gives them the edge … not to get an award.

How does your company benefit from winning this award?

As a company who distributes solely through brokers, to be presented with such a prestigious award – decided and voted by brokers – is a great achievement. Fundamentally, it is an indication that our formula of distributing through a broker-dedicated channel is not only successful but also fulfills a pivotal role in the current market

How are you going to leverage the fact that you have won?

If ‘leverage’ is about expecting more returns and working hard to achieve it, we have already received the FIA Intermediaries’ vote of confidence and to us that’s huge. It proves we put our money where our mouths are and don’t make empty promises.  We will continue aiming to make it happen for our brokers and differentiate ourselves through a focused, local and broker-driven formula.

Do you think the awards benefit consumers by encouraging better service from insurers?

Awards are a truly enjoyable way to highlight and applaud companies who excel. That positive energy is good for everyone – including consumers, but also for the intermediaries whose business challenge is to retain the loyalty and satisfaction of their clients as well as attract more.  To succeed and win an award such as this, insurers have to deliver the best to brokers and their mutual clients.  The benefits are therefore felt by the industry as a whole.

What response do you get from brokers based on the fact that you won the award?

Brokers have been extremely positive and we deeply appreciative their ongoing support, including with respect to the business and the strong relationships we have built over the years.   From a business perspective, it has provided more brokers with an insight into who Etana is and the value we have to offer with our focus on business and brokers.

Product Supplier of the Year – Investment Products Single Premium: SANLAM

Pieter Bester, General Manager, Sanlam Broker Distribution

Did you have a specific strategy to win the award?

No, our main objective is to provide solutions and services that meet the needs of our clients and intermediaries. We do believe, however, that winning the award is an indication that we are achieving our objectives.

How does Sanlam benefit from winning this award?

It’s always good to know that you are on the right track, and recognition, especially from intermediaries who have exposure to our products, is certainly a reputational feather in our cap. The award recognises that Sanlam’s strategy of starting with the needs of our clients is the correct strategy and that all our stakeholders are aligned to delivering the solution. It also means that the market recognises that Sanlam’s strategy, its innovative product and processes and employees deliver sustainable results. This serves to create an environment where employees, future employees, clients, the regulator and intermediaries value their engagement with Sanlam.

How are you going to leverage the fact that you have won?

The award sets the benchmark, and points to Sanlam as a company that offers the right solution to the right clients through the right channels. The recognition, therefore, presents us with an opportunity or a “ticket”, if you like, to further enhance our engagement with relevant stakeholders about the product solutions that we offer.

Do you think the awards benefit consumers by encouraging better service from insurers?

Most, if not all, insurers aim to provide excellent service that meets the needs of clients. So, while we believe the awards don’t directly impact this objective, it certainly serves as confirmation and motivation to continue striving for excellence in brand, product and service to clients and intermediaries alike.

What response do you get from brokers based on the fact that you won the award?

Brokers are certainly confident, and take comfort in the fact that they can offer their clients “best of breed” solutions through Sanlam. It undoubtedly enhances their advice offer to clients and their service to clients.

Employee Benefits Product Supplier of the Year: SANLAM

Richard van Dijk, General Manager, Sanlam Employee Benefits Distribution

Did you have a specific strategy to win the award?

Winning the award for the second successive year was an honour of which we are immensely proud, but this was not a conscious focus or stated objective.

Our strategy is to provide a comprehensive client-centric product and service proposition to intermediaries, through a dedicated distribution channel. We place our intermediaries at the centre of everything we do and, by partnering with them, grow our respective businesses.

How does your company benefit from winning this award?

Given that this award is the most independent, objective and credible award in the EB industry, the prestige attached to it is considerable, not only within FIA, but also in the wider intermediary networks. Clients see this as the best award in the industry and that provides confidence to entrust their employee benefits business to Sanlam. The ever-increasing new business volumes from intermediaries and their clients bear testimony to this.

How are you going to leverage the fact that you have won?

We advertise the recognition in all our marketing material, quotations, presentations and correspondence to intermediaries and clients. We are often asked for more detail of the award and this we provide, including due recognition of the valuable role that FIA plays in the industry.

Do you think the awards benefit consumers by encouraging better service from insurers?

Certainly! All service providers strive for this recognition. Competition is fierce and it is the most sought-after award in the industry. By becoming number one in the EB market, we now have even more motivation to improve our products and service to brokers even further, to retain our status.

What response do you get from brokers based on the fact that you won the award?

Brokers who have been Sanlam supporters for a long time are appreciative and have recognized the turnaround in service since our optimal structure implementation a few years ago. The award, now for the second successive year, has created much attention and this has encouraged other brokers to engage with SEB Distribution, as a partner in growth.

Underwriting Manager of the Year: Hospitality Indurstrial & Commercial Underwriting Managers

Denleigh Wilensky, Executive Director, HIC Underwriting Managers

Did you have a specific strategy to win the award?

Last year, we created a deliberate strategic initiative and implemented an internal drive for all our staff to go the extra mile for their brokers. We issued a broker survey asking how we could better our service and we improved in all areas of our business. It is such an honour to have won, knowing that our “going the extra mile” campaign worked; getting the recognition from our valued brokers is by far the best reward we could ask for.

How does your company benefit from winning this award?

This is the most prestigious award to win in South Africa and winning this has demonstrates to the insurance market that we give a quality service in terms of innovative products, strong relationships, high levels of service and overall satisfaction which were the criteria. Anyone can provide a product and reduce premiums; it is very difficult to replicate quality service and strong relationships. Hopefully some brokers who have not dealt with us in the past will now want to deal with us.

How are you going to leverage the fact that you have won?

We will continue to provide the best service to our current brokers, whom we hope will continue to support us, and we trust we will attract new brokers. We have also changed our logo to incorporate HIC being the FIA winners of 2012.

Do you think the awards benefit consumers by encouraging better service from insurers?

Yes, the FIA Awards encourage healthy competition between insurers and Underwriting Management Agencies and this can only be to the benefit of the broker and ultimately, the policyholder.

What response do you get from brokers based on the fact that you won the award?

The feedback we have received from our brokers is very positive and we would like to thank our brokers for their support and encouragement.

Short-Term Insurer of the Year – Personal Lines: SANTAM

Short-Term Insurer of the Year – Commercial: SANTAM

Edward Gibbens, Executive Head, Broker Distribution at Santam

Did you have a specific strategy to win the award?

This award is a mere validation that we do, in fact, put the broker and his business first. We are an intermediated business and we know how to do that exceptionally well, which this award proves.

How does your company benefit from winning this award?

Our biggest distribution channel is broker services and the fact that brokers themselves have given us the nod, in terms of this award, is an endorsement of our excellent service. The award will also help us communicate to an even wider broker network, and to the industry, that Santam does look after brokers – a claim we have just received backing for from brokers. 

How are you going to leverage the fact that you have won?

What is most important is that we have been honoured by independent brokers – winning Best Commercial Insurance for the fourth year running. We are doing more to strengthen our relationship structure with brokers as well as making significant improvements to processes that make our servicing of them and our clients better on all fronts. We will capitalise on this to support our brand position of insurance good and proper.

Do you think the awards benefit consumers by encouraging better service from insurers?

More than ever, consumers are faced with increased competitive market and are being led to believe that ‘good’ insurance is based on price alone, a proposition that is not necessarily true. Going forward, we believe that the intermediary will be crucial in ensuring that consumers receive invaluable advice and guidance when making decisions around their insurance portfolios. These awards recognise the value brokers place in Santam, and will be the benefit that is passed on to consumers. We are very pleased with our relationship with the FIA. They are focused on the correct issues, helping to make new regulation practical and effective and promoting the role of the insurance intermediary, as well as the need for adherence to standards.

We believe that the process by which they rank the insurance product providers is a very good one – its credible, independent and it keeps us on our toes.

What response do you get from brokers based on the fact that you won the award?

There’s an excitement from the brokers to see that we remain ahead of the pack. The FIA Awards have always been an important yardstick for Santam to gauge how we are measured in our industry. Brokers are a key part of the success of our business and we strive to maintain our strong connections. This award underlines the trust brokers place in our innovative product offering and support they receive, as well as Santam as a brand.

Long-Term Insurer of the Year – Risk Products: ALTRISK

Michael Blain, Managing Director of Altrisk

Did you have a specific strategy to win the award?

Rather than a strategy, it was the ethos that drives Altrisk at all levels that led to this success, that is, the belief that delivering simple and effective solutions is fundamental to the creation of a healthy, stable and professional industry.

For Altrisk, the consumer is best served by our supporting the financial advisor’s fundamental role in providing good solid products and service. Since our inception we have focused on delivering simple, specialised solutions to the individual with the help and support of the financial advisor.

How does your company benefit from winning this award?

The greatest benefit to us is the motivation that the award provides! We are delighted with this recognition from the FIA and financial advisors across the industry. As they deal with the vast array of benefits, services and brands on offer on a daily basis, financial advisors are best primed to judge the relevance of our service and solutions. It’s an honour to be recognised as the leader, and that really spurs us on to make sure that our service and delivery is even better in the coming year so that we can win the award in 2013.

How are you going to leverage the fact that you have won?

We don’t really see the award as something to leverage, but rather as recognition of our efforts to support the financial advisor and South African consumer. Being named Long Term Insurer of the Year – Risk Products encourages us to maintain our focus. We will continue to provide innovative products, solutions and pricing, matched with our commitment to simplicity and integrity.

Do you think the awards benefit consumers by encouraging better service from insurers?

The number of products, features and promises that abound in the long-term insurance market are enough to make the most informed consumer’s head spin. This all makes the role of the financial advisor even more critical. We believe that, as a product provider, we should be doing everything we can to alleviate the pressure on the financial advisor. That’s why we apply our philosophy of simplicity across all products and interactions. This simplicity extends from product features and benefits; to general exclusions, simpler quote systems, shorter applications and simpler ongoing management. Making insurance easier for the consumer to understand is good for all of us.

What response do you get from brokers based on the fact that you won the award?

We have been overwhelmed by the outpouring of support and congratulations that we have received. The intermediary channel is crucial to Altrisk, so it has been fantastic to not only be awarded this honour by financial advisors, but to have so many of them show their support.

Product supplier of the Year – Investment Products Recurring Premium: DISCOVERY LIFE

Health Care Product Supplier of the Year: DISCOVERY HEALTH

Hylton Kallner, Chief Marketing Officer, Discovery

The intermediaries sit at the centre of the system, and are best positioned to judge how we perform. Therefore to be recognised by them for an award is probably, for us, the single best accolade we could be given.

The Healthcare industry is constantly changing. At a national level, in terms of the regulatory environment, we focus on helping to develop a National Health Insurance scheme for the country – and globally, on managing healthcare costs and the impact of technology on smaller budgets.  We are driving hard at educating our clients on how to best use the healthcare system to get maximum value for their cover. This is an area in which we partner with intermediaries and we are seeing improving results in the coverage our clients are receiving, with less gaps in their cover and lower out of pocket payments.

We focus not only on paying for treatment to sick members, but on making them healthier. The results enable us to offer a more sustainable product and to make a real difference in the lives of our members by making them healthier.

The FIA award will reinforce our view that we can add real value in this highly competitive space. This is particularly pleasing considering that Discovery Invest is a relatively young company and that the value that we have brought is being recognised by the intermediaries.