Empowering Clients Through Effective Communication

Empowering Clients Through Effective Communication

The Significance of Client Communication and Education

Marike emphasised the vital role of client communication and education in creating a sustainable and affordable insurance
ecosystem. By providing clients with the necessary information and knowledge, insurance providers empower them to make
informed decisions. This, in turn, aids in risk reduction and contributes to transparent and constructive relationships between clients and insurance companies. Clear communication and education are essential components of achieving better outcomes for both clients and the industry.

Addressing Knowledge Gaps

One of the challenges in the insurance industry is the lack of clear understanding among clients regarding the risks they face
and the available insurance products. Marike stressed that education plays a crucial role in bridging this knowledge gap. Educated clients can better grasp the diverse types of insurance coverage and understand how these products address specific risks. This knowledge enables clients to make informed decisions about their coverage, leading to improved risk management and fewer claims.

Promoting Behavioural Change

Behavioural change is another aspect of client education that she highlighted. Insurance providers can influence client behaviour by
providing information about how certain behaviours impact insurance premiums. For example, educating clients about healthy lifestyles for health insurance or the installation of security systems for property insurance can motivate positive changes that reduce risks and, consequently, lower premiums. This approach not only benefits clients but also contributes to the sustainability of insurance operations.
I recently met with Marike Van Niekerk, Manager of Legal, Marketing, Communications & Compliance Officer at MUA Insurance Acceptances (Pty) Ltd (MUA), to discuss the pivotal role of client communication and education in fostering
sustainability and affordability within the insurance industry. This interview highlights the importance of clear and transparent communication to meet client expectations,
manage risks, and enhance the overall insurance ecosystem.

Clear and Transparent Communication

As a legal professional, Marike acknowledged the challenge of conveying complex legal terms and policy details to clients in a clear and understandable manner. To address this challenge, she stressed the importance of concise and transparent communication. This includes making policy terms, conditions, and pricing as simple as possible to reduce confusion. Additionally, educating clients about the claims process is vital to facilitate efficient claim resolution, minimise administrative costs, and provide clients with the necessary support during claims.

Marike Van Niekerk, Manager of Legal, Marketing, Communications & Compliance Officer at MUA Insurance Acceptances (Pty) Ltd (MUA)

The Role of Brokers in Effective Communication

Brokers, often serving as intermediaries between clients and insurance providers, play a crucial role in facilitating effective communication. Regulations mandate education and the use of plain language to ensure that clients understand their rights and obligations. Brokers act as educators, helping clients comprehend their needs and the available options. This approach builds long-term client relationships, leading to increased retention.

Client Communication as a Marketing and Sales Aid

From a marketing perspective, effective client communication is a valuable tool for capturing the attention of the audience and encouraging them to consider insurance offerings. By tailoring messages and campaigns to resonate with clients, insurers can enhance their marketing efforts and build brand loyalty. Clear communication and transparency also contribute to retaining clients over the long term.

The Importance of Continuous Communication

When asked if brokers focus enough on client communications, she emphasised that one can never communicate too much. The better clients understand their options and available coverage, the more informed choices they can make. Continuous communication and education on specific offerings tailored to client needs create a win-win situation for both clients and insurers. Marike Van Niekerk underscored the critical role of client communication and education in the insurance industry. Clear and transparent communication fosters sustainability, affordability, and better client outcomes. By empowering clients with knowledge and promoting behavioural changes, insurers can enhance risk management, reduce claims, and build long-lasting relationships.

Effective communication is not only a legal requirement but also a powerful tool for marketing and sales, ultimately benefitting the entire insurance ecosystem.