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May 1990
Controversial stand

Robert Vivian, Professor of insurance and risk management at the department of Business and Economics at the University of Witwatersrand, continues his monthly column on answering exam questions.
The Question: Discuss critically, the concept...

May 1990
Investors cash in

Last year saw the Johannesburg Stock Exchange (JSE) All Share Index appreciate by around 50%. After a two-year bear run the gold price started climbing and this, coupled with fine performances from blue chip industrial counters, meant that 1989...

May 1990
Critics’ choice

The recent release of the controversial Melamet Report on the export of insurance premiums and the use of captive insurers has sparked a lively debate in insurance circles.
Many question the Report’s recommendations saying they have been...

May 1990
Captivating idea

Robert Vivian, Professor of insurance and risk management at the department of Business and Economics at the University of Witwatersrand, questions certain unsound research.
The Commission of Inquiry into the Flow of Short-Term Insurance...

May 1990
Old hat

Security conscious though many of us may be, few enough realise the importance of keeping up to date. This means that the physical security measures being used are easy meat for the modern, sophisticated criminal.
Says Austen Safe MD Peter...

May 1990
Cover your environment

An increasing number of South African industries are facing liability claims for polluting the environment. Fortunately for them there is insurance cover known as EIL (environment impairment liability).
This encompasses claims arising from...

May 1990
Cash flow boost

Commercial Union Trade Finance (Cutfin), the trade finance associate of Commercial Union Insurance is off to a strong start.
Citing a string of enquiries and the signing of four deals in the first month of operation, Cutfin MD Cohn Warner...

May 1990
Shifting markets

There’s no doubt that the centres of the reinsurance markets have shifted. “This trend has not yet completed its course and will continue to develop into the nineties,” says Claus Bingemer, chief executive of Hannover Re.
Probably the...

May 1990
Veritable vortex

Tornadoes occur more often in South Africa than is generally realised. In the period from 1984 to 1988, the country experienced a total of seven known tornadoes. Six occurred seaward of the escarpment: at Piet Retief (Transvaal); Midmar Dam;...

May 1990
Corkscrew remover

Latest estimate indicates the tornado, which recently struck three of Welkom’s suburbs, caused damage to housing valued at R125m.
According to David Vermuelen, Welkom’s City Council director of engineering services, this figure does not...

May 1990
Getting temporary

In this final part of our look at limited interests, Anthony Erasmus, senior legal advisor of Old Mutual’s regional training centre in Durban, talks about property bequests made on a “temporary” basis.
Fideicommissa
A fideicommissa has...

May 1990
Transport terror

Consensus among medical experts who attended the AIDS in Industry seminar last month was that around 45% of South Africa’s black population and 12% of the white sector are expected to be HIV positive before the end of the present decade.
H1V...

May 1990
Take your pick

While removing much of the risk associated with direct share investment, unit trusts have developed to the point where the buyer is able, to some degree, to concentrate his investment on certain market segments.
Unit trusts can generally be...

May 1990
Going for gold

Old Mutual’s Gold Fund received an overwhelming reaction from investors, attracting over R17m in its first four days (also see Insurance Times January/February 1990 p4).
Recognised as the consistent top performer in the unit trust industry,...

May 1990
Promising future

There is vast growth potential in the unit trust industry. This is the view of Roy McAlpine, chairman of the Association of Unit Trusts. “Compared to the alternative investment products emanating from life assurance companies which are relatively...

May 1990
Second-hand option

Bill Hopley, AGM of National Employers’ General Insurance Company (NEG), enjoys the simple pleasures of life like mountaineering and hiking. He has, however, played a major role in developing NEG’s computer capabilities to the point where it has...

May 1990
Image fear

The South African life assurance industry was likely to move completely away from the contractual exclusion of AIDS (Acquired Immune Deficiency Syndrome) claims, said Southern Life GM Paul Truyens. He was speaking at the Second International Life...

May 1990
Pegasus policy

Crusader Life’s UK associate, Pegasus Assurance, sold its first policy in May last year. Although this event took place some three months behind target, Crusader MD Bob Rowand notes, “The business plan envisages that the company will show a...

May 1990
Quality spread

The market value of equities under Old Mutual management has now risen to the R35 billion mark, says GM investments Dr Johannes van der Horst. During the twelve months ended 31 December 1989, the market value of its equity portfolios rose by more...

May 1990
Reducing liability

The management and assessment of life and disability claims is an area requiring tact, diplomacy and compassion. Whilst the needs and welfare of the individual must be of paramount importance, it is also essential that some form of control should...

May 1990
Timing trick

Consequential loss, or business interruption insurance, is an essential component of risk management. It can be a lifesaver for a company when an event or accident halts production or prevents the concern from carrying out its normal business....

May 1990
Creative cover

Life assurance is not what it used to be. First, there were life policies designed to pay a lump sum on the death of the policyholder. Then came policies which offered pay-outs in the event of sickness or disability.
Until recently, however...

May 1990
Bill solution

According to Day Clinic Association (DCA) secretary, Carl Grillenberger, a day clinic can charge up to 40% less than a private hospital for surgical fees applicable to the same procedure. Overheads are substantially lower because day clinics do...

May 1990
Prescribed fortunes

Life assurers are always quick to respond to new legislative opportunities. The abolition of the prescribed assets requirements is an example. Despite certain misgivings amongst some assurers, certain competitors are pressing ahead with the “100...

May 1990
Getting on line

A new electronic on-line computer bureau service catering specifically for the special risks insurance market is being launched. Called SASRIA 2000, the service was developed by computer software specialist, DexData, and is to be available...

May 1990
Pirates’ bounty

Smack, crunch and crash: the sound of a freeway pile-up is music to the ears of pirate tow operators who suddenly and miraculously appear at the scene of an accident.
Some argue that tow operators provide a necessary service while others are...

May 1990
Budget blues

Finance Minister, Barend du Plessis’ Budget has been hailed as a breakthrough in the management of this country’s finances. For the first time in history an opposition party came out with praise for the measures announced. He has gone some way...

May 1990
Long term commitment

Lloyd’s of London has confirmed that the market’s capacity to accept insurance business for the 1990 year of account is a record £11,07 billion. Some 28 770 members are participating in the market. During last year, 4 975 members increased their...

May 1990
Rapid protection

Having opened its doors at the beginning of this year, the Intermediary Guarantee Facility (IGF) already has over 1 100 brokers on its books. Given that the broking community is estimated at between 9 000 and 10 000,...