Media Statement
Prepared for RiskSA – October issue
For immediate release
____________________________
Brokers are integral to ART market’s success
When direct insurance hit the local scene in the nineties, many predicted that
the demise of the insurance broker would follow. But these naysayers have
been proved wrong: not only have brokers not disappeared, they are more in
demand than ever before, especially in the commercial and corporate
markets. That’s according to Herman Schoeman, MD of Guardrisk.
And, with brokers increasingly expected to source cover for unconventional
business risks from across the entire market spectrum, it comes as no
surprise that they are regarded as integral to the success of the alternative
risk transfer (ART) market. The fact that companies face an ever shifting and
growing spectrum of risks – mainly due to increasing legislation and
exposures to new risk classes, many of which were unthinkable in the not too
distant past – has elevated the role of the broker to that of risk management
solutions’ specialist. Today’s broker is expected to have an in-depth
understanding of the client’s business environment, including understanding
their market and trading, or business, risks.
“These days few corporate clients’ needs can be met by a one dimensional
approach. Instead, we regularly see the traditional and ART markets
converging, with a host of players – including the traditional and cell insurers,
reinsurers and brokers – working together to provide the client with a
sophisticated solution to their risk management and
programmes.
risk financing
“And the broker brings to the table that most precious of resources: the
client’s trust, backed by market knowledge and the aura of independence,”
says Schoeman.
The draft of the King 3 report on corporate governance has put risk
management firmly in the spotlight and that’s not likely to change any time
soon. And, as soon as companies understand the direct benefits that prudent
risk management can deliver to the bottom line, there is almost inevitably a
progression to some degree of self-insurance.
“Brokers appreciate the sophisticated and customisable solution that ART
facilities like cell captives provide for their clients’ risk financing needs and the
market in turn values the brokers as its most effective distribution channel,”
says Schoeman.
ends
About Guardrisk
Guardrisk pioneered the cell captive concept, introducing cell captives to the
short-term insurance industry in 1993 and extending the structure to the life
industry in 1999. Guardrisk is the world’s largest specialist captive group of it’s
kind (in US dollar terms) For the year ending 31 March 2009, Gross premium
income, excluding reinsurance inwards, increased by 17% to R3,9 billion
(2008: R3,4 billion). The group’s total assets grew by 8% to R6,2 billion (2008:
R5,8 billion) and shareholders’ funds climbed 21% to R1,3 billion (2008: R1,1
billion).
Cell captives provide underwriting, reinsurance, claims management,
investment and accounting functions for clients (cell owners) who effectively
enjoy all the benefits of owning their own insurance company. This keeps
costs down and gives clients access to a broad base of insurance skills.
For further information please contact:
Herman Schoeman, MD of Guardrisk
Telephone: 011 669-1001
Prepared by:
Melanie Davis, PR@Work
Telephone: 011 615-3309 / 083 225 7450