Adapting to a Changing Risk Landscape in South Africa

At the AIE conference, Robert Attwell, CEO of Discovery Insure, provided valuable insights into the changing dynamics of the insurance industry in South Africa. He emphasised the concept of the "never normal," a term coined by author Peter Hinson, to describe the constant state of flux that insurers must navigate. Attwell highlighted the increasing unpredictability of weather patterns and the challenges and opportunities posed by South Africa's evolving energy landscape, particularly with the recent reduction in load shedding. He stressed that these changes necessitate a flexible and responsive approach from insurers, who must stay closely attuned to data and trends to offer appropriate coverage.

Attwell underscored the vital role of advisors in the insurance ecosystem. Advisors are essential for understanding client needs and risks, providing crucial feedback that helps insurers design products that truly meet market demands. This collaboration is vital for maintaining the sustainability of the insurance sector, ensuring that products are both relevant and fair.

Reflecting on the broader economic and political landscape, Attwell expressed a cautiously optimistic outlook. He noted a tangible positivity in the business environment, fuelled by factors such as controlled inflation and improved consumer confidence, partly due to a more stable political climate. The absence of load shedding during the winter months has also bolstered consumer sentiment, contributing to a more favourable outlook.

Attwell commended the conference for its role in advancing professional skills and fostering industry relationships. He highlighted the importance of networking and collaboration in the insurance sector, noting that such events provide a critical platform for discussing industry trends and innovations. He concluded by emphasising the value of senior leadership engagement in these conferences, which helps set a positive example and enhances the overall dynamic of industry networking.

Highlights

• Adaptation to Changing Risks: Discovery Insure is navigating the "never normal" environment, adjusting to factors like extreme weather and the implications of load shedding.

• Flexibility in Product Design: The company emphasises the need for flexibility in product offerings, ensuring that insurers quickly adjust to changes in risk to benefit clients.

• Collaboration with Advisors: Attwell highlighted the crucial role of advisors in understanding client needs and risks, advocating for a close partnership to maintain industry sustainability.

• Positive Business Outlook: Despite challenges, Attwell expressed optimism about South Africa's business environment, noting improvements in inflation control and consumer sentiment.