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May 1989
Finding the gaps

Probably the most revolutionary development in the life industry since the universal life concept is the movement towards health related insurances. And it is happening right now.
In theory life offices could package a set of optional...

May 1989
Consider the risk

Risk and reward: these are the essential factors to consider before making any investment - including the purchase of a life assurance policy.
Essentially, if you are prepared to take an abnormally high risk, the potential rewards must also...

May 1989
Loyalties are vital

It is vital that companies view insurance as the final line of defence and employ good risk management principles to keep premium rates reasonable, says Fedgen GM John Towsey.
Fire is an area which has huge potential losses. Both insurers...

May 1989
Caught short

Certain investment schemes introduced into the market pose inherent risks for clients. These schemes use an investment plan which is funded by a short-term loan.
Says J Jooste, GM Old Mutual, ‘They pose a serious hazard to the client and...

May 1989
Life assurers for the layman…

Even the “experts” battle to make investment decisions. So how does the layman ensure he is catering for his personal needs through effective investment? Part of the answer is to understand the criteria on which investment decisions are based and...

May 1989
Improving quality

The Life Underwriters’ Association of South Africa (LUASA) has come a long way since its inception in 1959 - at which time it was incorrectly perceived by many as a trade unionist organisation. LUASA is a professional non-profit organisation...

May 1989
Inadequate cover

Recent investigations have found existing fidelity guarantee policies have serious shortcomings.
These include:
*basic cover excludes hackers, ex- employees, the contract programmer, the maintenance engineer, and temporary staff - in...

May 1989
Losing grip

The world over it is commonly appreciated that vast amounts of money have been lost through computer fraud.
In South Africa losses amounted to a staggering R250m during 1988 alone. The costs to the British economy annually have been...

May 1989
Preparing for 1992

South African assurers who recently announced the establishment of offices in the UK are faced with more than the challenges presented by that country. European assurers and reinsurers are gearing up for significant changes following the...

May 1989
Less business

The life assurance industry has experienced unprecedented growth over the last two years to the extent that sonic institutions doubled their total income in this period.
Confidence in the industry has soared since the stock market crash of...

May 1989
Bridge that gap

By the time they reach retirement age, 34% of South African tax payers have to continue working. Another 32% manage to exist on state pensions while a further 17% depend on their families to stay alive.  These facts emerge from Norwich Life...

May 1989
Don’t substitute

Every industry has its bad eggs. Life assurance is no different. But, to their credit, those who run life offices are continually finding ways of blocking the unscrupulous few who slip through the selection process used to find suitable...

May 1989
Responding to consumer needs

Charles Bothner epitomises the essence of duality. Model of the establishment and its predictable respectability, he also represents the new breed of lateral thinkers - espousing innovative and converse notions.
He hauled in academic honours...

May 1989
Get back to basics

Fire ranks in the upper brackets on the scale of catastrophes. Perhaps it is viewed not in quite the same grave terms as, say, that of hurricanes. Nevertheless, it is still a major industrial event in destructive terms.
Bearing this in mind...

May 1989
Getting fidelity cover

Many financial institutions and other types of business reliant on computers have, by buying traditional fidelity insurance cover, protected themselves against theft of money or goods by employees. It is still generally assumed this cover will...

May 1989
Rolling the offshore ball

A number of local life assurers are putting money behind their claim that the South African assurance market is one of the most sophisticated in the world.
To prove it, they have been moving aggressively into the foreign arena — and this...

May 1989
Flying high

Investors who opted for general equity unit trusts should be pleased with both the short and longer term performance posted by their management companies. Those who selected specialist or income funds have less to smile about.
A report...

May 1989
Hats off...

Charter Life has just re-launched an updated version of its Plus 6 RA. The package was initially designed and directed at the individual and small business groups of five or more, but advances now provide a new option to enable the product to be...

May 1989
Day-one is OK

It is then that he is often found to be underinsured, either because he underestimated the cost of rebuilding or replacing the property, or because he failed to increase the sums insured in line with inflation, knows, to their cost, that capital...

May 1989
Bumper year

Benefits paid by life assurers climbed to R7,3 billion in 1988. This is 37,5% more than the 1987 figure. Benefit payments have increased by an average 36% over the past five years.
According to Pierre Steyn, LOA chairman and MD of Sanlam, “...

May 1989
Dreaded competition

Crusader Life has announced that negotiations regarding its planned entry into the British life assurance industry have now been finalised. It now has a holding of 26% of the issued share capital of newly formed Pegasus Financial Holdings Limited...

May 1989
Foreign reach

Close on the heels of Crusader Life and Southern, yet another South African life assurer has established a presence in the UK. Only recently announced, it was with effect from January 1st 1989, that Norwich Life formed a wholly owned subsidiary...

May 1989
More budget details

From April 1st 1989 a new tax formula is to be introduced in respect of the taxed portfolio.
The untaxed portfolio (pension, retirement annuity and immediate voluntary annuity business) remains unchanged. This is the first step in a series...

May 1989
Directive for directors

Following its support of one of the Melamet Commission’s recommendations, the Registrar of Insurance sent a circular to all short-term insurers last month. The Melamet Commission recommendation reads, “Financial institutions should have at least...

May 1989
Too low, too fast

Widely fluctuating insurance premiums are doing nothing to aid the public’s confidence in the insurance industry, and in the long run can only do harm, says Leon Britz, Santam Insurance’s AGM with responsibility for the eastern Cape.
Writing...

May 1989
AIDS and the rest

Over recent years fraud seems to have become a fashionable crime. The life assurance industry is also on the list of victims. In response their repudiation of claims has risen considerably. This follows a trend by policyholders of not disclosing...

May 1989
You need more than policies

A special anti-infection medical kit for travellers has been developed by Travel Assistance International (TAI). It has been designed for use in areas where hospital facilities are limited, and re-usable medical equipment is used. The kit...

May 1989
Softly, softly...

Short-term insurers are faced with at least another year of pressure on underwriting profits. This is the view of reinsurers who believe competition will remain fierce. The presence of overseas players and surplus capacity will continue to...