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August 2005
Hang on a minute….

The Insurance Brokers’ Council (IBC) and the Association of Black Insurance Brokers (ABIB) have delivered a proposal to National Treasury concerning the problems of high costs and low levels of investment returns in...

August 2005
Get material

Policyholders are warned that non-disclosure of material facts in insurance contracts could result in their claim being repudiated.

Gari Dombo, a director at Alexander Forbes Personal Services says, “...

August 2005
Life commission wrangle

Yes

The Financial Planning Institute (FPI) says it is in favour of any regulation that benefits the consumer — provided it makes provision for fair compensation for the broker.
It notes that the proposal for commission reform tabled by...

August 2005
Watch tax and fees

South Africa has entered a realm of relatively low and stable inflation for the first time since the 1960s. That the average rate from 1970 to 1999 was 11,4% per annum, and subsequent to 2000 has averaged below 5% per...

August 2005
No capacity

The SA Insurance Association (SAIA) says that short term insurance company members and their brokers are requesting clients to go to installation centres accredited to issue certificates endorsed by the Vehicle...

August 2005
Higher risk than bonds

There has been concern expressed by some commentators that the yield on listed property is the same as bonds. This implies the property market is over-priced considering it is a higher risk than bonds.

...

August 2005
All together

Local equities are expected to deliver returns of more than 12% and property between 8% and 12% over the next 12 months. This is the view of six fund managers from prominent South African asset management companies...

August 2005
Don’t bet on rand

Recent feedback from intermediaries is that offshore options are no longer ‘off the menu’ for private investors, according to Stanlib. They are either reviewing their levels of international diversification or...

August 2005
Significant milestones

In his Annual Report for 2004 the Ombudsman for Short-Term Insurance says he saw significant milestones for the office, including over R40 million being recovered on behalf of consumers who lodged a complaint against...

August 2005
Staggering

According to Guardrisk research shows that only 9% of South Africans have a pension fund and 11% have life assurance. Only 11% of the population (older than 16) have a formal life assurance policy, while 15% have a...

August 2005
Reforms at last…..

Following the introduction of FAIS, the industry’s intention to review its life commission structure is well-timed. For far too long the powers that be have ignored the sharp criticism of upfront commissions. As we...

August 2005
Smoke screen

The Insurance Brokers’ Council (IBC) says it rejects proposals for changes to life office commission structures, put up for discussion by the industry in June.

The IBC, which represents some 4 000...

August 2005
Two sides

Peter Dempsey, Managing Director of Masthead Distribution Services (a division of Old Mutual), says there will be no solution to the upfront commission debate if it excludes any one of the three key parties: the...

August 2005
On the table

The Life Offices’ Association (LOA) has tabled a discussion document outlining proposals to reform the current regulations regarding upfront commissions on long-term assurance policies, including endowments and...

August 2005
Claims hitch

July 1st was D-Day for the South African implementation of ICD-10, the international coding system for classifying diseases and related health problems. Medical schemes are urging members and service providers get to...

August 2005
CGT Catch

As part of estate planning, clients are normally advised to transfer assets into a family trust, and these transfers are usually financed by way of an interest-free loan. The values of the assets transferred are fixed...

August 2005
Umbrella benefits

Imminent changes to the Pension Funds Act will encourage employers to relook at the way retirement benefits are structured for their employees.

Sanele Nyoka, head of Old Mutual Evergreen Umbrella Pension...

August 2005
Independent means

The board members of SA retirement funds are responsible for protecting and growing billions of rands worth of savings – yet only one quarter of local boards boast independent trustees, according to the Retirement...

August 2005
Critical check

Regular payment of your medical aid contributions could prove critical and possibly save your life. Sadly, some members of medical schemes do not bother to check if their monthly contributions have been paid....

August 2005
Taking control

Insurance brokers probably earn the best part of their reputation by the way they handle policyholders’ claims. Do that well and their success is assured.

Unfortunately this is easier said than done. For...

August 2005
Expert opinion

Many people may wonder how to indemnify a collectable item and how insurers determine the correct replacement value of priceless works of art, stamp collections, paintings or antiques.

In taking out...

August 2005
Couple of ideas

It is a distinct trend these days, good or bad, of increasing numbers of couples staying together in unmarried bliss — in various combinations of this and that. As such the marriage contract cannot be used as a...

August 2005
Check the mix

I recently saw a brief article by a journalist whinging about high house prices. He essentially said that the rise of 30% in property values was caused by greedy speculators, who were therefore preventing first time...

August 2005
Accidents will happen…..

South Africa has a massive motor accident rate — one of the highest in the world. Even the most careful, artful drivers find themselves in the statistics. A vehicle properly maintained with enhanced safety features...

August 2005
Risk and price

Like many short-term insurance policy holders, you may have wondered how it is that your insurance premiums remain the same or increase, yet your vehicle value depreciates year on year.

Glen Langenegger,...

August 2005
Is it best to buy direct?

When buying insurance is it best to buy direct from the insurance company or should one go through an intermediary?

According to a recent study by two Wharton School of Business scholars, Professors J....

August 2005
Affinity programme

Auto & General says it has joined a community of partners introduced by Momentum Interactive, and this will enable policyholders to contribute to their investments every time they pay their insurance premiums....

August 2005
Uncovered issue

Stay focused and don’t lose confidence because ‘we are on track’ was the message presented at an Alexander Forbes Health Care seminar held mid-July on the issue of achieving equitable social health insurance in South...

August 2005
Time honoured

Last year was the safest year in terms of claims - only 15 airline losses compared to the average in the 1990s of 22. However, the cost of claims rose from US $804m in 2003 to $1 billion.

Naturally, the...

August 2005
One third better

Old Mutual’s Internal Ombudsman received 2 799 complaints from clients in the past year for a range of issues relating to advice, costs and service. It adds that in more than a third the Ombudsman settled in favour of...

August 2005
Buy more now….

The global commercial market is characterised by excess insurance and reinsurance capacity, two years of good underwriting profits and premiums that are going onto the books at lower levels at renewal date....

August 2005
Under control

The general insurance result declined 6% from R444 million to R419 million as a result of a decline in the underwriting surplus, and a reduction in the long-term rate applied to investment income for Mutual &...

August 2005
Better informed

The Life Offices’ Association (LOA) says its new Code on Policy Quotations (CPQ) was adopted by all of its 35 members from 1st July 2005.

The CPQ replaces the former Benefit Illustrations Agreement (BIA)...