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February 2005
Taking out the sting

Mutual & Federal says claims are what insurance is all about, and clearly sees its competitive position in this light. As one of its big billboards currently reads: ‘To see how good your insurance is – claim.’...

February 2005
Avoiding pressure

“We receive quite a few complaints about holiday clubs and timeshare,” says Credit Information Ombud Manie van Schalkwyk.

Some companies try to pressurise you into buying at a hard-sell presentation about...

February 2005
Relative benefits

There is still room for lower interest rates in South Africa, if you consider the real rate: indeed a further fall of three percentage points in prime to 8% per annum, based on long-term analysis is justified. According to research by Old Mutual...

February 2005
Rates continue to soften

First Link thinks falling commercial insurance rates will continue well into next year. This follows the previous three years of hardening rates in the commercial, personal and corporate books of business.
As First Link CEO, Keith Young...

February 2005
More disputes

In SA more and more claims are disputed by insurers, some for good reasons, others less so. In a recent crash in which four people lost their lives I was astonished to find that the Civil Aviation Authority took little or no interest in spite of...

February 2005
Get what you pay for…..

The continued emergence of direct short-term insurers in South Africa, as well as the reported increase in figures by the telemarketing companies, once again highlights the debate as to whether going direct is better than buying cover through an...

February 2005
The nightmare of the motor service trade…….

The following complaints are reproduced with the permission of Peter Cheales, website owner of www.hellopeter.com. They are all the complaints submitted during the period 24th November 2004 to 29th December 2004.

Case 1

I purchased a...

February 2005
The effective date

FAIS legislation was enacted in 2002 and requires the licensing of those who offer advice on financial products and services. A critical aspect is the accreditation of representatives of financial service providers who need to meet the capability...

February 2005
Separated out

The life assurance market has changed significantly in the last 10 years, and assurers need to adjust to meet the challenges caused by these changes, says Herschel Mayers, CEO of Discovery Life.
Growth in premium income for the industry has...

February 2005
Broking Buisness

Auto & General (A&G) launched its Broker of the Year event in November 2003, and held the second competition late last year. It is aimed at recognising ‘top supporting intermediary business partners.’
The criteria for this...

February 2005
Homely advice

Protecting your home loan should be a key priority in prudent financial planning - but traditional methods may not be the best or the cheapest.
Says Rhys Dyer, Insurance Director of MortgageSA, “Many buyers assume they must automatically...

February 2005
Alternative Strategy

To surrender policies without looking at alternatives is irresponsible and rarely in the best interests of the policyholder.
Gerry Anderson, deputy executive officer: market conduct and consumer education of the Financial Services Board (FSB...

February 2005
Default cover

In response to increasing market demand of South Africa’s booming property market and changes in legislation, Cre8 has introduced a comprehensive property owner and landlord insurance product called Natsure-Accommod8.
It is being launched in...

February 2005
Sanlam survey

Local equities remain the preferred investment choice for asset managers and returns of 10% are expected over the next 12 months. That is the houseview of six leading asset managers surveyed in Sanlam Personal Portfolios’ (SP²) fourth quarter...

February 2005
Equity advice

Many investors will be taking a ‘breather’ from the markets in January and February, using the period to take a little profit and reassess prospects before making major new commitments. So look out for a minor market correction.
The...

February 2005
Body snatchers

The tragic kidnapping and subsequent murder of Leigh Matthews, the 21-year old daughter of a Johannesburg businessman early last year thrust the phenomenon of kidnapping into the local limelight.
But this was not an isolated incident, notes...

February 2005
The shoddy world of Renault

It is quite tedious ending up with a mistaken purchase — even worse if you’re abandoned to take the knock. They’ve got your money, so why should they worry? A few hundred rands here or there for a faulty toaster or CD player might be OK to forget...

February 2005
Savings question

Consumers have been inundated with advertising from direct insurers that encourage them to make huge savings by cutting out the middle man.
“However, the advertising is misleading,” says Johann van Rensburg, President of the Independent...

February 2005
Cover update

The favourable underwriting conditions in the short term market, with premiums remaining fairly steady, present a rare opportunity for policyholders to review their personal lines insurance.
Steffen Gilbert, Chief Executive of Santam, says...

February 2005
Balancing act

Various types of Self-Insurance Programmes have existed for many years. These benefited clients by looking at Multi-Year Insurance Programmes which enabled them to see through the cyclical nature of the insurance industry, explains Danny...

February 2005
Controlling markets

It is a constant wonder to me that clever people out there argue the benefits of capitalism. Yes, they believe in free markets, and spurn the namby-pamby week-kneed socialists who want a safety net for every possible failure. They see capitalism...

February 2005
Life on the road

For a number of reasons insurers and reinsurers will think twice about pricing a life insurance product targeted at truck drivers, says Michal Nejthardt, Actuarial Analyst, Life and Health, at Munich Re.
This occupation is considered a high...

February 2005
Cover note

Homeowner’s insurance is not being managed properly. On the one hand many clients are over insured and paying too much in premiums; while on the other, those who have paid off their bonds have let their insurance cover lapse unwittingly
...

February 2005
Practice Note

Employees should take the issue of pension and provident fund benefits much more seriously. Stanlib believes they will if they realise the tax implications of failing to claim benefits.
In General Note 35, SARS has confirmed the requirements...

February 2005
Bygones but not forgotten

In view of the current interest in the start of aviation I am reprinting by permission of myself, the original author, an article written for the RAF Officers’ Club newsletter.
An extract from the neat little booklet “Pioneers of the Air”,...

February 2005
Flight of fancy

In an extraordinary continuing saga authorities playing the inevitable race card, have refused to accept the failing of a student pilot.
The alleged pilot has been under training for a considerable time at the Airforce flying school. He...

February 2005
New Gun Laws

While the new gun laws are to be welcomed, thus promoting better controls of ownership and reducing the numbers of unlicensed firearms, one must wonder: have the authorities gone far enough?
What about doctors?
According to Aviation...

February 2005
Easier for Oldies to Surrender

“An unlicensed fire-arm and an incompetent owner are just as illegal as an unlicensed vehicle or a driver without a driver’s licence. That’s why it is in the interest of each current and prospective gun owner to ensure that the new laws are...

February 2005
No grip

According to recent global research, 90% of financial organisations each loose more than R70 million a year because of poor risk management.
Despite this, as much as one-fifth of all financial institutions have no operational risk programme...

February 2005
Aviation rating dilemma

Life assurers tend to load premium rates for certain perceived ‘hazardous activities’ and one of them is aviation. But are the higher rates justified?
One aircraft owner wrote to us recently, and Aviation Consultant Henry Tours believes he...

February 2005
Panel beaters who get it right the first time

The second leg of the Auto & General nationwide panel beater incentive competition took place on 30TH November 2004 at a ceremony held in Johannesburg. The competition was launched to motivate and inspire all panel beaters used by A&G to...

February 2005
Polishing Image

Gert Visser has been elected President of the Association of Debt Recovery Agents (ADRA) for 2005.
He is currently a director at Pholosa Asset Management, and has been closely associated with ADRA for some time, serving on the board for two...

February 2005
Just a Spoonful

Discovery Health says it has taken action to stop the overcharging of its members at some Dischem outlets. The pharmacy has pledged to refund Discovery members any payments in excess of their normal prices and these amounts will be credited to...

February 2005
‘No bubble’

There’s little chance of the ‘bubble’ in house prices bursting any time soon, because there is no ‘bubble’. At least that’s Stanlib’ view. Its research shows that, despite first impressions, house prices have not been skyrocketing.
Year-on-...

February 2005
Covering absenteeism in the workplace

The absenteeism rate for people living with HIV/AIDS is three times higher than for those who are not infected. This is according to a study conducted by AIC Insurance, a company specialising in the underwriting of the direct cost of absenteeism...