Safire Insurance Newsletter 2015


October 2015
World number one for drunk driving deaths
It’s official...South Africa holds the top slot when it comes to drunk-driving-related deaths, according to a report by the World Health Organization, which covered 180 countries across the world. Apparently, road traffic deaths reached 1.25 million globally in 2013 (the latest figures available). In Africa, you have a 26.6% chance of dying in a road accident, with South Africa recording the highest rate of alcohol-related road deaths with up to 58% of deaths attributed to alcohol consumption. The WHO estimates that 7.8% of South Africa’s GDP is lost through crashes on the country’s roads. As we lead up to the festive season, please be careful.
To read more…
Crash scamming tricks
Beware: there are several scams being played out on our roads by con-artists who will stop at nothing to make a profit from unsuspecting drivers and their insurance companies. The scammer causes a car accident for which the insured driver is blamed. Their insurance company pays for the scammer’s damage, but they claim an inflated amount so that the scammer ends up with extra money from the insurance company. The insured driver might not feel the loss but ultimately they will be impacted by the knock-on effect as insurance premiums will inevitably have to increase. There are several type of crash scams, including the so-called “crash for cash”.
To read more…
Protests lead to Sasria losses
Civil unrest led to a 54% increase in claims, resulting in a dramatic decline in profits for Sasria, the state-owned special risks insurer, which provides short-term insurance against loss or damage to property arising from civil commotion, public disorder, strikes, riots and terrorism. These risks, which include the burning of cars and looting of businesses, are not covered by other short-term insurers. However, despite this increase, the amount of R300m paid out was less than the R507m paid out in 2013-14.
To read more…
Irish insurance price hikes
Ireland’s motor insurers have been accused of ‘co-ordinated pricing’ by a local consumer watchdog, the Competition and Consumer Protection Commission, after a warning by Insurance Ireland head Kevin Thompson of an anticipated 25% increase on motor vehicle insurance premiums in 2016, even though a significant increase of 27% took place in the past year.
To
“Ridiculous” insurance
Taking online game playing to a whole new level: game developer Konami has announced that it now offers what has been labelled ‘the most ridiculous form of insurance’, providing in-game insurance to serious Metal Gear Solid V gamers to cover losses incurred by a player should their in-game base be destroyed during online play.
To
Why claims are rejected #18

People who are insured and who have issues with decisions made by their insurance company about claims may take the matter to the Ombudsman for Short-term Insurance. One of the reasons for disputing a claim is when premises that are unoccupied for an extended period are affected by an incident, possibly a break-in or damage from a burst geyser, for example. The insured is obliged to notify their insurance company if a property is going to be unoccupied for any period of time.

KFC shark
advert outrage

KFC South Africa has provoked outrage with its latest advert, which is based on a much-flighted incident a few months ago when world surfing champion Mick Fanning had a far-too-close-for-comfort encounter with a shark while competing in Jeffrey’s Bay. KFC South Africa has parodied the near-attack in its latest advert.
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Insurers are experiencing increasing numbers of false claims, varying from over-inflated amounts claimed for car and home break-ins to completely falsified events. A Cape Town restaurant manager recently staged a robbery at his Observatory workplace in an attempt to defraud the restaurant’s insurance company – but was foiled through footage on CCTV.
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So you think we have electricity issues today? Apparently, when Edison tried to ‘wire up’ Lower Manhattan for streetlights, it was a mystery why passing horses would become spooked and skittish. The great inventor eventually realised that leaking electricity was making the horses’ metal horseshoes prickle with electrical charge – hence the prancing steeds!

Massive earthquake

Once again the full destructive force of nature is captured on film. On 26 October, a 7.5 magnitude earthquake rocked Afghanistan, India and Pakistan, killing and injuring hundreds of people and causing significant damage to buildings and infrastructure. This follows a month when the country has experienced 17 major earthquakes, 9 in the past seven days, according to Earthquake Track.
To view ...

Economic Tidbits
Economic Tidbits
Economic Tidbits

• 2,7 million kilometers - the distance Google’s fleet of driverless test cars has driven with only 11 accidents. Driverless cars are predicted to upend the insurance industry in terms of liability definitions.

• R6 billion in tax - what Naspers non-executive chairman Koos Bekker may have paid in tax on the estimated R20 billion he made selling approximately 70% of his Naspers shares over the past year.

• 2 - the number of African countries to experience a decline in per capita wealth over the past 14 years according to The Africa 2015 Wealth Report. One, Libya, was at war, while the other is Zimbabwe...

• 8% - the portion of South Africa’s population in the 60-plus age group. It’s the lowest in the big seven emerging markets, compared with 15% for China and 20% for Russia. Factoring in population longevity demographics is crucial to life insurance.

• 0,4% of GDP - the expected boost to consolidated government revenue due in part to the proposed one-off relief for Unemployment Insurance Fund contributions (which would have put R15 billion back into the pockets of workers and businesses) not being implemented.

• £100m profit a year - what Douw Steyn’s BGL group generates per year in the UK using South African insurance concepts.

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