COVER interviewed Nick Swart, Etana’s divisional MD of Construction, Engineering and Guarantees.
COVER: Why has this become such a highly competitive environment lately? Is this owing to an increase in players?
In recent years, especially leading up to the World Cup, there has been a lot of building happening in South Africa, which has resulted in companies, traditionally not active or experienced in the engineering insurance market, deciding to ‘jump onto the bandwagon’. This is a matter of concern because genuine expertise is a fundamental necessity in this arena where many millions are at stake and profit chasing is harmful to our economy as a whole.
COVER: Is there room for all, and do we have the skills available for so many players?
The short answer is no; we do not have sufficient expertise for the number of recent players who have entered the market in this specialist arena. However, we believe market conditions will determine the capacity, and the under-performers will disappear due to the lack of support. As South Africa’s largest dedicated business insurer, Etana’s specialist divisions are only managed by experts in each specialist field and that’s the kind of backup we deliver to clients, exclusively through brokers who are dedicated to delivering expert guidance.
COVER: Where do insurers distinguish themselves from each other?
The ultimate purpose of insurance is to return a client to their position prior to loss. The insurer that does this repeatedly and expertly will become distinguished and known as extraordinary, and this helps brokers retain their clients.
Etana considers superior risk evaluation and management is crucial to creating and tailoring innovative insurance that covers every possibility. We do not believe in the one-size-fits all, mass market, theory and take great care to back our brokers with individualised cover for every conceivable eventuality. Only then can they gain the confidence of their clients and retain their business and guarantee financial stability.
To make a difference in the skills shortage area, and essential to the delivery of top service, Etana has its own Etana Academy to deliver skills training to Etanans and its brokers. We have offered critical training during the past months to prepare our network of brokers and Etana team members for the RE1 exams.
We have also supported SAIA by providing a venue for their six months Construction and Engineering course to upgrade the skills and knowledge of this specialist area in the insurance industry. Expertise in this area is vital to the development of South Africa, but knowledge needed in this specialty is vast and especially complicated. Etana applauds the efforts of SAIA and its subcommittee, SAMIA, for this initiative.
In other words, Etana believes that through delivering service to the industry, superior risk insight, powerful protection, customer and broker service, and person-to-person understanding of a broker’s and consumer’s needs, an insurer distinguishes itself from others who are merely going through the motions.
Another very important way Etana distinguishes itself is through not following the trend to centralise for convenience. Our highly experienced teams in our Local is Lekker branches throughout South Africa give personal service and eye-to-eye communication to local brokers. This means a broker actually knows the person on the other end of the telephone when he/she calls for assistance. In addition, that local Etanan personally understands his/her needs and those of the client. Our local Etanans deliver local support which is appreciated and different.
COVER: Are we seeing developments in other countries favouring local players and are we ready to take advantage of these opportunities?
Etana looks forward to expanding its presence in Africa. We come out of Africa and are excited to serve Africa. We believe Africa is awakening and offers opportunities for those who have true expertise to offer – coupled with integrity. However, a major problem in Africa is the lack of energy and continuous conflict.
Etana looks forward to a future where unity of purpose replaces tribal and religious conflict, so that natural resources within various countries can be shared for the prosperity of the entire continent. We have dedicated business insurance expertise to offer, including in the fields of Engineering and Construction, and understand Africa and its needs.
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