Short-term insurer Santam believes that a combination of advice and technology will redefine the general insurance sector as one that prevents loss rather than simply paying claims when loss events occur.
The inaugural publication of its Short-term Insurance Barometer urged industry stakeholders to affirm the value of insurance to the broader economy and to acknowledge the role of intermediaries in risk mitigation.
Changes in consumer buying behaviour could be hampering the industry’s call for a loss-prevention focus. “There has been a shift away from advice and intermediated distribution to direct and self-insurance solutions despite the growing complexity of the risk environment,” says Andrew Coutts, the head of intermediated business at Santam.
The barometer found that only 17% of consumers who buy personal lines cover were assisted by intermediaries versus the 62% who placed their cover with direct insurers, unadvised.