Investment and insurance

How climate change could be driving up your insurance premiums

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 […]

2018-10-22T12:01:49+02:00Oct 22nd, 2018|Investment and insurance, Recources, Syllabus Topics|

3 types of intent that affect your car insurance claim

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 […]

2018-10-22T11:49:17+02:00Oct 22nd, 2018|Investment and insurance, Recources, Syllabus Topics|

Is investment in the commercial property market a safer option than shares?

19 APR 2018

According to Norman Raad, CEO of Broll Auctions & Sales, now, more than ever, investors are finding it a safer option to invest in direct property than in shares.

“The recent slump in numerous listed property shares, which have been trading well over their net asset value (NAV), is testament to the fact that momentum experienced can become somewhat ‘addictive’. As a result, while the investors were chasing the stock and driving the share price up, we tended to lose sight of the underlying true NAV of the investments.

“As many people recently lost money on selected property investments, the question investors must now ask themselves is whether to invest in direct property or not. The answer is simple and is in the affirmative, provided that you have a good management team in place, that you are paying nothing more than the true NAV of the bricks and mortar – […]

2018-05-05T11:17:01+02:00May 5th, 2018|Investment and insurance, Recources, Syllabus Topics|

Happy, healthy employees

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 […]

2018-03-27T10:59:12+02:00Mar 27th, 2018|Investment and insurance, Recources, Syllabus Topics|

Moody’s reprieve ‘not enough’ for hard-pressed consumers

Mar 24 2018 – Tehillah Niselow

Johannesburg – Although all South Africans will benefit from the Moody’s move not to downgrade South Africa, it is not enough for hard-pressed consumers, warned debt counselling firm Debt Rescue.
The Banking Association of South Africa (BASA) on Saturday welcomed Moody’s affirmation of South Africa’s investment rating, saying that another downgrade would have increased the cost of borrowing for the state, companies and financial institutions.
On Friday night, the ratings agency affirmed South Africa’s long term foreign and local currency debt ratings at ‘Baa3’ and revised the outlook to stable from negative, citing changes in the political arena, the strengthening of key institutions, improved economic growth and commitment to fiscal consolidation as reasons for their decision.
“All South Africans – business and consumers – will benefit from this show of confidence in the progress the country has made in addressing some of the concerns previously raised by […]

2018-03-27T09:02:59+02:00Mar 27th, 2018|Investment and insurance, Recources, Syllabus Topics|

Selecting Insurance Plans Using Needs Analysis

By: Adam Colgate

Knowing how much insurance you will need as a small business owner can be a challenging endeavor. Nevertheless, having the appropriate insurance policy can save a small business a lot of money.

Needs analysis can give you a better idea of what kind and how much insurance would be the optimum for your business. Of course, buying liability, property and health insurance, in addition to Workmen’s Compensation, can be quite expensive, so assessing your business’ needs and what kind and how much insurance can be crucial.

Evaluating Your Business

The first consideration when using needs analysis for deciding on an insurance policy for your small business consists of accurately analyzing the different liabilities and assets which directly affect the business. These include:
• Property – this includes equipment, real estate and other assets.
• Business Volume – the amount of accounts receivable and the average cash flow of the business.
• Salaries – how much you pay […]

2017-12-18T17:23:46+02:00Dec 18th, 2017|Investment and insurance, Recources, Syllabus Topics|

Is your insurer checking your Facebook page?

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 […]

2017-09-30T11:15:41+02:00Sep 30th, 2017|Investment and insurance, Recources, Syllabus Topics|

Don’t take everything offshore just because you can

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 […]

2017-09-30T10:59:43+02:00Sep 30th, 2017|Investment and insurance, Recources, Syllabus Topics|

Top tips to make saving a lifestyle

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 […]

2017-07-28T05:46:41+02:00Jul 28th, 2017|Investment and insurance, Recources, Syllabus Topics|

12 easy ways to commit to saving


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, […]

2017-07-28T05:40:59+02:00Jul 28th, 2017|Investment and insurance, Recources, Syllabus Topics|

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