'Building relationships is key to growth'

Marine insurance specialist Associated Marine will pursue a partnership approach in its growth plans for Africa, a key future focus for the group going forward, says chief operating officer Mike Brews. It’s a philosophy that has worked for parent company Santam and Sanlam which have operated through business partnerships with companies in various African countries. “It’s a case of finding key strategic partners and investing knowledge and capital into those companies so that we can grow the business base for them and us.” It’s worked in the past, says Brews. “Anything those insurance companies can’t manage in their own portfolio comes to us for expertise or capacity – and that network has been expanding.” There are a growing number of enquiries coming from Africa, according to Brews, but the region’s reliance on South Africa is diminishing as they develop their own international relationships. “Which is why for South African companies to grow in Africa they need to develop relationships with the locals. You can’t rely on business coming in through SA brokers and insurers so a big focus for us is to build relationships in those countries directly.” And these relationships are also key to understanding the local regulations, he added, providing insights into legal and regulatory issues. “It’s all about communication and understanding the risks. And we find our clients’ knowledge of the cover required and risks involved is improving – they’re far more aware of the risks and are more likely to insure against those risks.” In terms of business growth, the weaker rand appears to be creating a favourable business environment for the insurance industry. “The rand dollar exchange rate is helping our exports so were seeing an increase in export turnover which has a positive knock-on effect for us. Imports on the other hand haven’t decreased but the value is higher which also has an impact on our business and growth.” INSERT & CAPTION For South African companies to grow in Africa they need to develop relationships with the locals. – Mike Brews