By Denise Hattingh, Managing Director
In an increasingly globalised insurance environment, I have observed a shift in how brokers are placing specialist risk. There is growing interest in offshore markets, particularly when it comes to short-term insurance for film, television, and events.
While the promise of lower premiums may appear attractive, it’s critical that we pause to assess the broader consequences, not just for individual clients, but for the South African insurance industry as a whole.
At KEU Underwriting Managers, we have spent more than two decades working alongside brokers who understand the value of proximity, responsiveness, and local expertise. It’s from this position of experience that I believe local still matters, now more than ever.
Offshore May Offer Price, But at What Cost?
There is no denying that brokers operate in a cost-sensitive environment. Clients are under financial pressure, and international markets often present competitive premium structures. But pricing is only one part of a much larger equation.
In the specialist lines we underwrite, such as film and event insurance in South Africa, timing is everything. A delayed claim can jeopardise an entire shoot or live event. When brokers choose offshore placements, they may gain pricing benefits, but they often lose access to fast, familiar, and context-specific support, especially when it matters most.
An insurance solution only proves its value when a claim arises. In our market, we often provide support under pressure in situations that require not just cover, but context.
Local Means Faster Claims and Practical Cover
Our local market advantage is not just about location. It’s about understanding. When a claim comes in at KEU, we do not need to read between the lines of foreign law or navigate time zones. We understand the venue, the production schedule, the transport route, and the risk environment because we have worked in it.
That is why our solutions include practical enhancements like non-appearance cover for photographers, continuing hire charges for lost equipment, and realistic sub-limits for theft from unattended vehicles. These are not hypothetical risks; they are realities in our market. And they are covered because we have built our solutions in direct response to broker and client experience.
Broker Relationships Matter
As a locally based underwriting manager, one of our greatest strengths is the relationships we build with brokers over time. We know your clients. We speak your language. And when a situation escalates, you know who to call.
Brokers also benefit from proximity when engaging in complex negotiations or when clarity is needed quickly. With a local underwriter, there is less bureaucracy, fewer time delays, and more flexibility to problem-solve in real time. That human element, the ability to pick up the phone and speak to someone who knows the risk inside out, is often lost in offshore structures.
Offshore placements rarely offer the same level of continuity or personalisation. There is a difference between having a policy and having a partner, someone who understands the realities on the ground and is invested in helping you deliver value to your clients.
Supporting Local Means Sustaining the Market
Every time risk is placed offshore, we risk losing more than the premium. We risk losing local skills, underwriting capacity, and market relevance. If specialist brokers and clients begin to view local solutions as secondary, our ability to innovate and respond to market needs will inevitably weaken.
I believe that supporting local financial services is part of a broker’s broader responsibility, not just to clients, but to the industry. Every placement decision shapes the future of the market we operate in. And that future depends on whether we retain the skills, institutions, and expertise that have served our industry well for decades.
It also ensures that underwriting remains locally accountable and responsive to national needs, rather than being shaped by risk appetites and pricing frameworks set abroad.
Legal and Regulatory Certainty
Locally placed insurance also brings the benefit of regulatory clarity. Our policies are governed by South African law, and we operate under the oversight of the Financial Sector Conduct Authority (FSCA). This provides peace of mind for brokers and clients alike, with well-understood processes for dispute resolution, policy enforcement, and claims escalation.
By contrast, offshore policies may fall under different legal systems, and resolving a claim dispute can become a complex, costly, and time-consuming exercise, particularly when dealing with unfamiliar legislation, foreign service providers, or distant jurisdictions. The lack of transparency can leave clients feeling uncertain at the exact moment they need assurance.
When brokers work with local underwriters, the framework is clear, the relationships are direct, and the recourse is local, and that makes a material difference in both service and accountability.
A Final Word to Our Broker Community
I have always believed that brokers play a critical role in shaping the direction of the insurance market. Your decisions influence where value is created, where relationships are strengthened, and where expertise is retained.
Brokers do not just move premiums; they shape the market. Every local placement strengthens our ecosystem. Every offshore diversion erodes the relationships, skills, and responsiveness we have built over time.
At KEU, we remain committed to underwriting solutions that reflect the needs of the South African film and events industry. We back local, and we invite you to do the same.
As we look ahead, I am confident that the brokers who place with intent and purpose will be those who not only retain their clients, but help rebuild a stronger, more responsive, and more resilient South African insurance market.
