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May 2010
Your packet has been delayed

The last year or so has seen a flurry of excitement over the promises of much higher bandwidths and internet speeds for South Africa. By the end of next year it is understood there will be no less than nine undersea...

May 2010
Fire confusion

Astonishingly, the crash which occurred way back in 2000 – some ten years ago, is only just getting into court to lay the blame for what happened and which killed 113 people. The defendants are Continental Airlines,...

May 2010
FirstRand unbundles

In a joint statement issued 31st March 2010 FirstRand, Momentum and Metropolitan announced that they had reached an agreement to merge Momentum and Metropolitan to create a major new South African insurance group....

May 2010
Every bit counts

Most people understand they should save for retirement but what is less well known is just how large a portion of retirement income comes from investment returns - not just how much they’ve saved.
John...

May 2010
Outdated and one-dimensional

Alexander Forbes says that the South African retirement fund industry’s focus on only asset performance was ‘outdated and one - dimensional’ placing pensioners at a greater risk of a cash-starved retirement....

May 2010
Expensive territory

Look past the froth of the World Cup feel-good effect. Irrational decisions taken during a potential period of exuberance could leave some South African investors on a hiding to nothing by the time of the June kick-...

May 2010
Bearing down

With South Africa having technically emerged from a recession, we note that on average, investors have not achieved positive real returns over the past three years, particularly when factoring in tax on cash, property...

May 2010
Tears over wear and tear

Many insured companies have grappled with what is ‘sudden and unforeseen’ damage, especially in business interruption and machinery breakdown policies. Various insurers have had to explain to unhappy clients that a...

May 2010
Villainous Telkom

Telkom is undoubtedly the villain in the affair. For years it has been holding South Africa to ransom by its monopolistic grip on our Internet technology. How this entity has been allowed to exercise its will in such...

May 2010
Seal of fate?

The Arctic Ocean is warming up, icebergs are growing scarcer and in some places the seals are finding the water too hot, according to a report to the Commerce Department from Consulafft, at Bergen, Norway. Reports...

May 2010
Less of a threat

The recent release of the draft amendments to Regulation 28 of the Pension Funds Act has led to much speculation about the potential impact on certain savings and investment products. The assumption has been made, for...

May 2010
Old story

South Africa’s low interest rate climate is putting the squeeze on some senior citizens on fixed incomes who are increasingly tempted to economise on household costs by cutting or cancelling their short-term insurance...

May 2010
Now and then…

While South Africa’s literacy rate for adults is 88%, according to UNESCO, measures of financial literacy of South African’s are far lower and one of the key factors is the fact that only between 6%-15% of the country...

May 2010
Associated support

The South African Insurance Association (SAIA) supports the information published in recent Financial Services Board (FSB) circulars regarding the Financial Advisory and Intermediary Services Act (FAIS) Fit and Proper...

May 2010
Type of error

It was only two months ago now that the ‘reliable’ authority of the Intergovernmental Panel on Climate Change (the IPCC) was put into question by leaked emails from the University of East Anglia's Climatic Research...

May 2010
SA lag

This will be a year of economic recovery, both globally and locally. The question that remains to be answered is how sustainable and prolonged it is going to be, especially since broad stock market valuations appear...

May 2010
Fall in complaints

Late March saw the release of the 2009 report from Brian Martin, the Ombudsman for Short-Term Insurance. He noted that the year had been one of the most difficult in the history of the global economy and this...

May 2010
In the line of fire

Retailers will be heavily exposed to liability actions once the Consumer Protection Act (CPA) comes into effect later this year, and product recalls are likely to increase substantially. This is because the new Act...

May 2010
Consumer Protection Act

At its simplest level the new Consumer Protection Act does not impact on the provision of insurance services. However, this view is based on an assumption that the Long-term Insurance and the Short-term Insurance Acts...

May 2010
Repair risk

“The short term motor industry is unsustainable in its current structure and at current premiums.” This is the opinion of Ian Labram, Manager, Aura Motor at Guardrisk. He warns of deteriorating underwriting results...

May 2010
Redcing hassle

Mutual & Federal says it has launched a second dual assessment claims centre to help policyholders reduce the time, cost and hassle required in submitting motor insurance claims and have their vehicles repaired....

May 2010
Group therapy

Reduced turnover and profits in 2009 saw cut backs in salaries, no wage increases and the scrapping of bonuses, pushing many employees to seek alternative sources of compensation – often by stealing from their...

May 2010
Steering a course

Outsourcing of Administration to Short term insurance brokers occurs as a result of the desire of brokers to manage all the client “touch points” efficiently. Due to the fact that these brokers very often dealt with a...

May 2010
Untangling a bundle

RMBH holds a portfolio of strategic investments in some of South Africa’s financial services franchises including:

• banking and insurance group - FirstRand (30%);
• health and life assurer -...

May 2010
Football fret

Local entrepreneurs planning to provide transport to guests during the 2010 FIFA World Cup could find themselves personally liable for accidents and damages, potentially leaving them in financial ruin, if they do not...

May 2010
Rising storms

In South Africa with floods in Kwa-Zulu Natal, a wet summer in Gauteng, flooding in the Free State, gale force winds and drought in the Eastern Cape, and freak storms in the Western Cape the country has experienced a...

May 2010
Caught in the Act

The Financial Services Board (FSB) issued a directive and information letter concerning so-called ‘Binder agreements’ on 31 March 2010. It is intended to enhance the reporting requirements for all short-term insurers...