Investment and insurance

Sep 23 2018 – Lameez Omarjee

Extreme weather patterns have increased the potential for liability claims, costing both insurers and clients more, an industry expert has warned.

In 2017, worldwide weather events, natural phenomena and large man-made disasters ran up estimated losses of $337bn (about R4.8 trn), according to global reinsurer Swiss Re Sigma. This translated to insured losses of $144bn (about R2.05bn).
South Africa has also contended with the results of extreme weather, such as the Knysna fires, the drought in the Western Cape, and severe floods and storms in Gauteng.

Insurers and reinsurers did manage to pay valid claims. However, the increase in weather events means insurers must be aware of a likely increase in such claims in the future, explains Caroline Theodosiou, director at law firm Norton Rose Fulbright.
Having paid out large numbers of claims, the next step is to recover the monies paid out. According to Theodosiou, this is where […]

Aug 16 2018 17:44

When deciding on whether someone should be covered in the event of a motor vehicle accident, an insurer may decide that a seemingly negligent driver actually acted with intent and should therefore not be covered, and such insurer may apply criminal court judgments to do so. Johannes du Plessis, legal advisor at RBS (Risk Benefit Solutions), a financial services broker, says consumers could find their vehicle claims rejected by insurers if it can be argued that they acted with intent instead of negligence during a motor vehicle collision.
“Insurance companies do not cover damages caused with intent, but they do cover damages caused by negligence…The Civil Court often uses Criminal Court judgments when it comes to determining negligence or intent.”

He adds that it is important to understand that the law differentiates between different kinds of intent. For example, one of the kinds of intent is intent-by-possibility, the definition […]

Jun 21 2017
The author of The Happiness Advantage, Shawn Anchor discovered that when a person is feeling positive, the brain works much better. His research found that at these “happy” times the individuals tended to be more creative and become better at solving problems, as well as more effective collaborators with their colleagues. Anchor therefore also argues that there is then a clear incentive for employers that the happiness of their employees leads to greater levels of profits.

Further, a healthy workforce is directly linked to high levels of productivity and your business’ positive bottom-line performance. In South Africa’s first Effective Employee Index which was conducted by MMI, the holdings company of Momentum, in consultation with Unisa to research employee productivity, it shows that physical health and financial wellbeing are key drivers of employee productivity. Sick, unhealthy employees who are anxious about their finances then transforms into high levels of absenteeism […]

How big data and social media might impact your insurance.

Patrick Cairns                          29 September 2017

Picture: Scott Eells/Bloomberg

People need to be aware of the implications of what they post online writes Patrick Cairns.

Wherever you are, and whatever you are doing, the chances are it’s being recorded somehow. And it’s also probable that that record can be accessed.

That is the nature of a highly-connected world. The internet contains far more information about us than most people realise.

Whether its through business sales records, social media or sensors in the internet of things, almost everything we do contributes to what is known as big data. This is a huge volume of information, that is constantly growing, which could potentially be mined by organisations to assist them, and hopefully the public, in a variety of ways.

Speaking in Cape Town this week, Maria Philippides, a director at Norton […]

Consider the fundamental value in South African assets.

Patrick Cairns                                                  26 July 2017

Picture: Simon Dawson/Bloomberg

For many local investors, it’s hard to feel confident about putting money into South African assets. The risks and uncertainties seem very high, particularly when it comes to cash and government bonds.

At the start of 1994, one US dollar bought R3.40. The local currency has since depreciated by close to 75%, and people are therefore worried about losing purchasing power if they invest in South African cash.

The uncertainties about the country’s political and fiscal stability also make many investors wary of local government bonds. There is a good chance that South Africa’s sovereign credit rating will be downgraded to sub-investment grade before the end of this year, and people are worried about whether that will cause an exodus of foreign investors and how that would impact the bond […]

Lameez Omarjee and Carin Smith
2017-07-07 20:09

Johannesburg – Saving should not be seen as a once-off exercise.
According to Ester Ochse, product specialist at FNB, consumers should re-evaluate their lifestyle and make saving part of it.

Ochse shares a few habits consumers can adopt to achieve this.
Among these include buying what you need. “Determine what you need and what you don’t need. Sometimes we become ‘impulse buyers’ and tend to waste our money on unnecessary clothes, cosmetics, toiletries,” she says.

Cooking at home is also a more cost effective option than buying take-outs daily, explains Ochse. “You will be surprised at how much you can save by just cooking a healthy meal for your family. An added bonus is that you can take leftovers for lunch the next day.”

Save spare change in an account, suggests Ochse. Instead of putting your loose coins or notes under the bed or couch, open a savings account. Another […]

2017-07-01

Johannesburg – Saving is largely dependent on willpower and discipline, according to the South African Savings Institute (SASI).

Chairperson Prem Govender explained that South Africans have to improve their attitude to saving, given the credit ratings downgrade and the low growth economic environment. “Many South Africans are struggling to save not only due to income challenges, but also the lack of willpower and commitment,” said Govender.

Data from the South African Reserve Bank (SARB) shows that in the past 16 years there has been a decline in the savings rate, explained Govender. It reached as low as -2.70% in 2013. The savings rate increased from -0.50% in the last quarter of 2016 to -0.30% in the first quarter of 2017.

This has been accompanied by a reduction in household debt. Data from SARB shows on an annual basis, the growth in household debt slowed from 4.6% in 2015 to 3.9% in 2016. Further, […]