Failure to disclose material terms and conditions has been the downfall of many an adviser when a complaint is laid with the FAIS Ombud. Admittedly, 20/20 vision is only possible in hindsight as far as insurance goes, but upfront communication can save your bacon one day. “I want to insure my personal possessions.” “The value […]
A Deloitte survey last year determined that Internet-connected offerings, such as motor telematics and home insurance linked to home sensors, cause apprehension among many customers, as they do not feel comfortable sharing data from car and home sensors with insurers. Despite this, telematics is seen as changing the way car and home insurance is and […]
The Policyholder Protection Rules require insurers to ensure that policyholders are made aware of the existence of the time-limitation clause, as well as the implications thereof. This protects policyholders from being prejudiced by clauses which they previously would not have been made aware of or did not fully understand. In addition, it provides the policyholder […]
Before the COVID-19 pandemic, the South African Short-Term Insurance market was on a strong growth trajectory, increasing by a solid 4.3% in insurance premium volumes, between 2018 and 2019. However, similar to the global market situation, the local market has been negatively impacted by the COVID-19 pandemic and subsequent lockdown measures, with a growing number […]
Towards the end of last year we briefly reported that from 1 January 2020, retired Judge Ron McLaren will be the single watchdog for both the short-term (non-life) and long-term (life) insurance industries. In a recent article by the office of the Ombudsman for Short-Term Insurance (OSTI), Judge McLaren explains that there will now be a single […]
In a recent Short-term insurance case study, the Ombudsman for Short Term Insurance (OSTI) emphasised that short-term insurance contracts are entered into in good faith. “Under common law, a policyholder when requesting cover must make full disclosure of all matters material to the insurer’s assessment of the risk. This principle is founded on the insurer’s […]
“Short Term Insurance complaints remain the highest number of complaints received by this Office”. This is the view of Marc Alves of the FAIS Ombud’s office. In a recent FAIS Ombud newsletter he shares that one of the most significant causes for complaints received by the FAIS Ombud, is the replacement of short-term insurance policies, […]
Unless clients have elected to pay an additional premium for an excess-free policy, they will almost always pay an excess when they claim from their insurer- whether it’s their fault or not. The Ombudsman for Short-Term Insurance recently commented on excesses. In the media release the Ombud answers the following questions: What is an excess? […]
The charging of fees in the Short-term space, and particularly the so-called “administration fee”, has always been a bone of contention in the industry. Many elected to simply follow the ostrich approach and charge clients for doing something for which they are already compensated via commission, but this may not be the wisest move, going […]
South African Short-term Insurance – what are the latest trends, drivers and challenges? A question that more than one research house asked and surveyed in the last few months. In today’s rapidly changing environment, identifying trends in your industry, market and customers can give you a competitive edge. Research findings and reports give you access […]
