On the back of continued growth and a commitment to expanding its presence in the South Africa market, niche insurance specialist ACE Insurance has announced a further injection of capital into its local operations. ACE CEO Mike Durek says some R35-million was put into the business in June, providing capital adequacy for the growing business.
He says the company has experienced steady growth since its [year] launch in South Africa. “In the insurance business, the more business you write, the more capital you need to provide for potential claims. We’re enjoying strong growth despite the competitive nature of insurance in this country and hence required a substantial further investment to support that expansion.”
Recognised as a top player internationally, ACE Insurance was founded in Bermuda in 1985 and specialises in corporate casualty and property insurance and reinsurance. As a late entrant to the local market, Durek says the company seeks to remain a niche insurer with a focus on the business-to-business model. “As such, we are working on driving visibility with brokers as our distribution channel to get our name and our products more widely known and recognised.”
Explaining its strategy, Durek says the ‘mainstream’ insurance market is, to a large extent, sewn up by incumbent providers. “Niche products, on the other hand, depend on a very specific understanding of the needs of select elements of the market, then more accurately meeting those needs. Our growth depends on creating the sort of niche products which find appeal with those specific customers, something which is being achieved and in turn, is driving the requirement for the further injection of capital.”
Confirming that the organisation will continue to introduce additional specialist products, Durek says two aspects are considered critical for success in the competitive insurance landscape. “The first is the customer. A heightened focus on service is necessary. That means a level of speed in delivering everything from quotations and policy contracts through to claims processing. It also means we need a high quality of competency in the people engaging with our clients; a niche insurer must engage more directly with customers.
“The second aspect is the competitive but sustainable pricing of products; there is room for innovation through the structuring of products to suit individual circumstances, something which is more feasible for a niche service provider where greater flexibility in underlying business systems is present,” he concludes.