Image
Icon

Directory

IconAppraisers and Valuers
IconAssociations and Institutes
IconBBBEE Consulting and Verification Agencies
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDefensive Driver Training
IconEmergency Medical Rescue
IconForensic Investigation Services
IconInsurance Brokers - Alphabetical Listing
IconInsurance Brokers by Type of Product or Service Needed
IconInsurance Companies
IconInsurance Consultants
IconLightning Damage & Surge Protection Specialists
IconOmbud
IconOnline Quotes and Cover
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconTelephone Quotes
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
Advertise Here
  Subscribe To »

THE FUTURE OF INSURANCE IN SOUTH AFRICA’S AGRICULTURAL INDUSTRY

Published

2021

Fri

13

Aug

With increasingly severe weather, growing political volatility, cyber concerns and other threats, farmers need to continue to invest in their risk preparedness. As the farming industry is disrupted by digital, insurers and intermediaries must anticipate emerging risks to remain relevant and be the partner that farmers need. Now’s the time for insurance-specific technologies, intensified focus on AI and strategic partnerships.

 

For intermediaries and insurers, the focus has shifted to proactive risk mitigation to assist clients to predict and prevent losses. The emphasis is on partnering with clients to facilitate collaborative risk management. This means using data to provide granular, customised support to guide clients’ decision-making, risk management best practices and disaster recovery plans.

 

What clients want

Today’s insurance client seeks greater risk prevention, ease of doing business, and value-added services. The incorporation of digital platforms in agricultural insurance has the potential to accelerate client records, reduce transaction costs and improve insurance process efficiency. The absorption of technology will enhance the response to external shocks, leading to enhanced stability, growth, and sustainability of agricultural value chains.

 

However, clients need to be convinced that new ways of working are beneficial. For example, worldwide, the issue of mobile insurance policies has increased by 68%. However, only 7% of these policies originated from the agricultural industry, indicating a favourable opportunity for growth within the sector.

 

The evolution of agriculture – and agricultural insurance

According to Omri van Zyl, Agri Enterprises, the farming industry is expected to consolidate in the medium term. In the next 10 to 12 years, there should be greater integration of farming technologies, daily monitoring of conditions via a more developed digital ecosystem, the integration of smart farm equipment like drones, and more regulation driving digital adoption. From an insurance perspective, agents will need to use digital solutions to drive value creation and forge lasting farm relationships.

 

Emerging risks will transform the insurance landscape and digital transformation will shape customer experience and consumer behaviours with focus on simplicity, speed and convenience.

Data will change how we interact, and poor data management will become an enterprise-level existential threat.

 

Partnerships are pivotal

Going forward, insurers need to pioneer innovative risk-mitigation products that meet changing client expectations, such as Santam’s customised solutions for the modern farmer. Service-based models will be key. Additionally, they’ll need to partner with dynamic start-ups and Insuretech companies to retain relevance and assist farmers with the solutions required to smoothly transition from traditional to digital farming practices. Technology will also empower intermediaries to aggregate multiple value-added services to best serve a clients’ risk needs.

As insurers, Insuretech and Agtech companies merge, there’s the opportunity for data to be collected and losses assessed at a rapid rate. However, the move to digital comes with risks. Global cyber insurance is expected to reach up to 25% growth by 2025. This presents another opportunity for insurers and intermediaries to tailor-make insurance solutions to help clients navigate a new world.

 

Now is the time to move beyond insurance. Becoming an ‘everyday adviser’ means proactively providing guidance on risk mitigation. It means unlocking the power of real-time, personalised data to anticipate what farmers need. It means listening to clients and thinking of innovative, immersive ways to improve customer experience.

 
Source: By Hanlie Kroese, Manager Segment Solutions at Santam
 
« Back to previous page Print this page » |
 

Breaking News »

To have and to hold a signed Will

National Wills Week will be held from 13 to 17 September 2021. This is an ideal opportunity to draft a Will or to review an existing Will. In recent times, we have come to realise that death can happen to ...
Read More »

  

Covid-19 Vaccine Distribution Risks and Insurance: Q&A with Allianz Specialists

As COVID-19 vaccine distribution rolls out across Africa and the world, insurers of the pharmaceutical industry are in a position to share their experience as to what constitutes a successful and safe distribution ...
Read More »

  

Car insurance for women: Keeping you safe no matter where you are

For today’s woman who owns a car, motor insurance is a must-have. However, there are various issues to keep in mind when you, as a woman, buy cover for your vehicle. The first question to ask is ...
Read More »

  

AUTO & GENERAL’S RELIEF FUND GROWS TO R370 MILLION

Three severe waves of the coronavirus pushed South Africa’s unemployment rate to a record high of 32. 6%. The July unrest only exasperated our unemployment crisis – Employment and Labour Minister, Thulas ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Advertise Here
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

OTC (Over the counter):

Share dealings outside a recognised securities exchange.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2021. All Rights Reserved.