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Intermediaries The South African Insurance Industry Survey 2016 | 43
Traditionally reinsurance intermediaries were a go-
between function, performing largely administrative CHANGE IS NOT A THREAT,
and relationship management roles. The business IT’S AN OPPORTUNITY.
model and role of the reinsurance intermediary SURVIVAL IS NOT THE GOAL,
has evolved, fast, and is continually evolving. TRANSFORMATIVE SUCCESS IS.
Progressively they are playing sturdier roles in
risk and capital management, thought leadership, Seth Godin
analytics, software development, business
strategy and interacting with capital markets in the
development of alternative risk transfer solutions.

As such, reinsurance intermediaries have positioned
themselves as leaders in the understanding,
pricing and transferring of insurance risk. However,
reinsurers have historically been regarded as
the experts in this regard. With reinsurance
intermediaries becoming a driving force behind
and facilitating the provision of alternative capital,
coupled with a strong service offering, the technical
expertise and risk transfer offering of reinsurance
providers is being challenged.

Conclusion
The insurance market is changing rapidly and there
is a risk of negative impact for reinsurers placing
their value propositions in jeopardy. However,
the traditional reinsurance value proposition
and business model is not expected to become
obsolete, but reinsurers will need to adapt to
survive in the current and future risk landscape,
which is continually shifting.
On the flip side of the coin, enormous potential for
innovation has been revealed and reinsurers need
to ensure they remain relevant and protect and
grow their business in light of these challenges.