Safire Insurance Newsletter 2015


June 2015
Fraudulent claims crisis
False and inflated insurance claims are becoming an increasingly serious problem. According to an ongoing study by the Insurance Research Council of the US, up to $7.7 billion in auto insurance injury claims filed in 2012 were fraudulent or contained inflated figures, a 33% increase from 2002 figures. Auto insurance fraud is the largest component of overall fraud, according to the National Insurance Crime Bureau. Locally, an estimated 30% of claims contain an element of fraud, according to the South African Insurance Crime Bureau. Fraudulent claims largely involve inflated losses, when items are added to what has genuinely been lost or stolen. Less common are cases where entire claims are falsified or a theft is staged.
To read more…
Safire Baynesfield MTB Classic
This year’s Safire Baynesfield Classic on 14 June, a highlight of the KZN mountain-biking calendar, saw almost 1000 riders of all ages hitting the trails on a mild mid-winter’s day. The event again consisted of 10km, 20km, 45km and 65km routes to ensure there was a trail suitable for riders of all ages and fitness levels as well as some of the country’s hottest professional riders. Trail runners were also accommodated for the first time, with a relaxed 10km trail run. The overall (65km) winners are seen here with Safire CEO Pierre Bekker (far right).
To read more…
Becoming dumber?
A recent study by a British scientist suggests that humans are likely to become increasingly stupid, because smart women aren’t reproducing. Researcher Satoshi Kanazawa from the London School of Economics has published a book called “The Intelligence Paradox: Why the Intelligent Choice Isn’t Always the Smart One”. It suggests that intelligence and maternal urge in women are inversely proportionate – leaving less intelligent women to become mothers while intelligent women focus on their careers. The research suggests that for every 15 IQ points a woman possesses, her maternal urge drops by 25%.
To read more…
Safire’s polo champs
Safire is a co-sponsor of the annual Karkloof Classic Polo Tournament which took place on 28 June, with twenty teams in total competing for top honours in their various divisions. The 14 High Goal A section, sponsored by Safire and won by Team Safire last year, was hotly contested once again by four evenly matched sides: Team Safire (seen here), Team UD Trucks, and teams from Jonsson Workwear and Garden City Commercial.
Safire Golf Day
Almost 150 golfers from the insurance industry took part in the recent Safire Golf Day at the Victoria Country Club in Pietermaritzburg. This annual event, held to promote networking and relationship-building between stakeholders, was won by Walter Nagel, Justin Wills, Simon Kimber and Laurence Truter.
New look Safire van
After the devastating hail storms in Pietermaritzburg a few months ago, there were literally hundreds of vehicles that needed repairs – including our own Safire van that is used for promotional events and other duties. Our marketing team took this as an opportunity to give the vehicle a whole new look that is sure to once again turn heads as our mobile billboard goes past.
Why claims are rejected #14

Homeowner’s insurance is cover for your home - the building, not the contents. It is important to realise that the insured value is not what would be paid if the property was to be sold, it is the cost of replacing or rebuilding the home at today’s values and it is vital to ensure that your home is not undervalued. According to the Ombudsman for Short-term Insurance, one reason that a client’s claim might be rejected is if a peril the individual is not covered for caused the loss - if a loss was the result of “gradual deterioration” and “maintenance” issues, you aren’t covered, says the Ombudsman. Homeowner’s insurance typically covers you for storm and fire damage.

What will
kill you?
Worldwide catastrophes
Jockeys helping horses

More Americans worry about dying in plane crashes than road accidents, even though 865 times more people die on the roads than in the air. Accidental overdose of prescription medication, being a passenger in a vehicle that crashes or falling off a ladder are more likely to result in death, according to the National Safety Council, which has unveiled its annual “Odds of Dying” list.
Read more

Impact Forecasting has released the latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of natural disasters across the world during May 2015. These include major floods in China and Australia; an intense heat wave in India that has killed at over 2,500 people; a major earthquake near Mount Everest; super typhoon Noul, which swept across the Philippines, and tropical storm Ana.
Read more

A study by the Structure and Motion Laboratory at the Royal Veterinary College in London showed that jockeys have adjusted their riding style to minimise inertial loss – energy horses spend bouncing their riders around. Using motion sensors, the team proved that modern jockeys remain steady despite their mount’s movement, and that a skilled jockey can lessen the work a horse has to do, resulting in increased speed.
Read more

CEO SleepOut

On Thursday 18 June, some of the country’s richest and most influential businessmen took to the icy winter streets of Sandton as part of the global CEO SleepOut campaign, which aims to raise money for worthy causes and highlight the plight of the homeless. More than R22-million was raised for Girls and Boys’ Town. See what it is all about... ...

Economic Tidbits
Economic Tidbits
Economic Tidbits

• From R450 to R225 – the cut in E-toll tariffs for light motor vehicles as announced by Deputy President Cyril Ramaphosa. He also announced that those with outstanding e-toll payments would not be able to renew their vehicle licences. In contrast, several major insurance companies have said they will not consider the status of a customer’s vehicle licence disc when considering whether to settle a claim.

.• R1 billion – what ride-hailing app Uber is planning to invest in China this year.

• R441, 4 million – what Vodacom’s insurance-related revenue (based largely on the insurance of mobile devices) grew to from R324,6 million in 2014.

• 1% - what insurance amounts to from the rest of Africa’s gross domestic product compared to 12-14% for South Africa according to this report.

• R61.5 billion – what the food waste South Africa generates per annum (10 million tons) costs the country.

• 86% - percentage of South Africans who took out a loan last year compared to the 40% global average, making us the world’s top (worst) borrowers.

• R55 000 – what a South African man allegedly tried to scam insurers out of after claiming he was robbed while on holiday in Thailand. For his troubles, he faces jail in Thailand before being deported back to South Africa.

update your preferences
forward this email to a friend
Tweet Button
Facebook Like Button
Contact Us

Office: +27 (0)33 264 8500

Fax: +27 (0)33 264 8501



Reg No: 2000/027673/06 An Authorised Financial Services Provider [FSP No: 2092]