THE INSURER | APRIL 2018
Some insurers don’t
trust self-driving cars
Self-driving vehicles promise to make our roads safer by eliminating human error (including drunk driving, driver fatigue and texting while at the wheel). But these cars, at least in the short-term, could actually increase driver risk – and risk to other road users - because people don't yet fully understand the technology or how it works. British insurance companies call this "autonomous ambiguity", and it is not an abstract issue. The Association of British Insurers argues that drivers don’t understand the limitations of these semi-autonomous systems, and may believe their car is more capable than it really is, leading to potentially life-threatening situations. Read more…
Studying storm impact
Madagascar experiences 3-4 cyclones annually, characterised by storms, torrential rain and strong winds. The largely impoverished island’s government has studied the impact of cyclones but focused on the cost of physical damage for providing immediate aid without considering wider implications such as loss of services or livelihoods. Now research is being undertaken to work on an “economic risk atlas” that examines a hazard and its intensity/magnitude, and gives the economic cost information of vulnerable assets. Experts and policymakers will know the economic benefits of different assets in advance – and therefore where to invest in disaster risk reduction.
Safire King of the Sea 2018
It is almost here – just a few weeks to go until competitors on kayaks, jetskis and skiboats battle it out at the ultimate KZN fishing challenge, the 2018 Safire King of the Sea competition on 12-13 May. This popular family-focused event takes place at the Pumula Beach Hotel on the KZN South Coast, so come along for an exciting outdoor event with lots of fun for the whole family. For more information, visit events@gofishmagazine.co.za.
Security ratings
The US no longer issues travel warnings but has developed a new system that rates every country in the world according to security risk indicators such as crime, terrorism, civil unrest, health, natural disasters and a ‘time-limited event’. Level one countries are considered the safest with travellers advised to simply ‘exercise normal precautions’. Level two means ‘exercise increased caution’ with three meaning ‘reconsider travel’ and four ‘do not travel’. South Africa is currently at level two because of the threat of crime. The site details common types of crime, advising people not to walk alone especially after dark, to drive with doors locked and to avoid displaying valuables.
Insurance fraud hurts everyone
The South African Insurance Association estimates that almost one third of local insurance claims are fraudulent in some way, which is in line with international trends. In general, there are two different types of insurance fraudster: those who take out policies with the upfront intention of stealing and those with existing policies who either claim for items that were stolen or damaged when they weren’t or who over-inflate values in their claims when something is legitimately stolen or damaged. But it’s simply not worth it. Many fraudulent claims result in legal action against the claimant, who can be prosecuted even after a claim has been paid. In addition, it is a common misconception that insurance fraud is an industry issue, but ultimately everyone suffers as the cost of providing insurance inevitably increases.
One of the responsible 90%?
An impressive 90% of South African vehicle owners claim that they service their vehicles regularly, according to a recent survey by the Automobile Association. This is good news for road-users as a well maintained vehicle is a safer vehicle. According to the survey findings, 53% of vehicle owners service their vehicles at the original dealer franchises, while 37% take their vehicles to private mechanics. Many owners are comfortable servicing their vehicles themselves, while only a small percentage (less than 10%) indicate they do not service their vehicles at all.
Talk talk
Although English is widely used, Chinese is the most spoken first language in the world, with 1.3 billion people in 38 countries using it as their mother tongue. Spanish is in second place, spoken by 442 million people in 31 countries. English is in third place.
Busy winner
Dubai airport is the world’s busiest airport for international travelers for the fourth year running, with 88.2 million people passing through this Gulf travel hub. International travel increased by 4.6 million passengers or 5.5% compared to the previous year.
Water into wine
Over 400 million litres of wine leaves Cape Town harbour annually – great for winemakers but possibly problematic since making a 750ml bottle of wine requires 750ml of water. This water footprint equals two years’ supply for the increasingly dry city at current consumption rates.
Weatherwise windmills
According to this YouTube clip, “Holland is one of the greatest countries to live in, but the biggest downside is that it rains 145 days a year”. That’s why the Google Cloud Platform team in the Netherlands launched Google Wind this month, on April 1st…Have a look.
ECONOMIC TIDBITS
$200 – cost of a hypothetical basket of ‘vice goods’ in the USA last year versus 2016. So-called ‘vices’ such as drinking, smoking and illegal drugs are cheapest in Luxembourg.
1 million – number of inflight Wi-Fi sessions aboard Emirates, the world’s largest international carrier, during March 2018, an indicator of passenger demand for maintained connectivity even while in the air.
33 – number of South African Facebook users who installed the app used to scoop personal information shared with political marketing group Cambridge Analytica. However, 59 777 users were “potentially impacted” in South Africa.
6% - percentage of tenants in South Africa who are not paying rent as at the end of last year, despite legal options available to landlords.
125 000 – anticipated amount in tons of the South African avocado crop, increased to cope with global demand.
$1 billion – anticipated size of the esports industry by the end of this year, based on trends and the 258 million monthly viewers.
The Insurer newsletter and the content of any article published herein, should not be construed as forming part of any insurance contract or policy nor as constituting any form of advice. It is aimed at providing an informal and informative read to the readers thereof. Whilst every effort is taken to attempt to ensure the accuracy and correctness of the information contained herein, Safire Insurance Company Limited does not give any assurance regarding such accuracy or correctness and accordingly does not accept any liability whatsoever for any loss or damage, whether direct, indirect or consequential, arising from any reliance placed in the information contained herein.
Reg No: 2000/027673/06
An Authorised Financial Services Provider [FSP No: 2092]
