EU Female drivers
Submitted by byrnie on Mon, 2011-04-25 18:37Short description:
We support the views of the South African Insurance Association (SAIA) that states that South Africa is unlikely to see any impact from a recent EU that outlaws preferential insurance to female drivers, as the country’s current legal framework has been drafted to allow for any differentiation that is ultimately beneficial for consumers.
Content:
The South African insurance landscape seem to set its pace at the level of developments in European and North American industries. In this regard, MUA has noticed with interest the decision by the EU that effecively bans the practice of offering reduced insurance premiums to female drives.
In this regard, we support the views of the South African Insurance Association (SAIA) that states that South Africa is unlikely to see any impact from the decision as the country’s current legal framework has been drafted to allow for any differentiation that is ultimately beneficial for consumers.
While some of our competitors base their entire business models, and indeed branding in some cases, on discounting for female drivers, MUA’s rating is based on careful, individual assessments of the risk profiles. It is not based on a generalisation on the behaviour of a group our clients might belong to. Rather, it is based on actuarial science and determined on the basis of accurate information collated over a period of time.
We believe this practice will stand us in good stead in the long run, and will proof to be in line with our country’s constitution that rules out discrimination (economic or otherwise) against any grouping (including gender).
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- 438 reads
Amendments to SA Insurance Act
Submitted by byrnie on Mon, 2011-04-25 18:35Image/Video:
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There has been some amendments to the FAIS Code of General Conduct.
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There has been some amendments to the FAIS Code of General Conduct and, when read in conjunction with binder regulations, they provide scope for fair remuneration for underwriting managers, which may include profit shares. The FAIS regulations place severe restrictions on incentives and extend the obligations to avoid or mitigate as prescribed by the Conflicts of Interest regulations that is in force and effect. The challenge is to continue to do business successfully without contravening these remuneration and disclosure provisions.
The Short Term Insurance Act presented a number of interpretation difficulty, especially when it came to an underwriting managing agent (UMA). There is a clear difference between a UMA and an independent intermediary. The Insurance Laws Amendment Act, 27 of 2008 then levelled the playing field by introducing the concept of binder agreements. The FSB, in conjunction with short term industry stakeholders, drafted the regulations governing these binder relationships.
Binder agreements are an established feature of the short term insurance industry. A binder agreement is an outsourcing agreement between an insurer and a third party (broker, administrator or underwriting manager agent). The insurer mandates the binder holder to perform certain functions for and on behalf of the insurer in connection with administration of insurance policies and claims as prescribed in the regulations. A UMA may be paid a fee for services rendered and may share in profits of the insurer attributable to the type or kind of policies referred to in the binder agreement.
These regulations place restrictions on the underwriting agent. Policy issuing and premium collection will not be seen as a binder function and therefore no fee can be paid by an insurer for rendering these functions only. UMA’s will not be allowed to charge any additional fees – including what is usually referred to as a debit order fee – over and above the risk premium. If claims may be settled or value of policy benefits may be determined, a fee may not constitute or be based on a percentage of the difference between amount claimed or the maximum value of policy. All fees must be disclosed to the policyholder.
The industry was requested to submit comments to the FSB (Financial Services Board) on the draft binder regulations during October 2010. The FSB is in the process of revising and redrafting the Binder Regulations and it is expected that this process will be completed by March 2011. Thereafter the final draft will have to be approved by National Treasury and the Gazetting process will follow. It will be followed by guidelines in relation to the way in which third party administrators can carry on business. All agreements concluded before or on the date on which the Binder Regulations will commence, must be aligned with the regulations within one year of it coming into operation.
The intention of the Binder Regulations is to result in responsible outsourcing, policy holder protection and managing conflict of interest
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Conflict of Interest
Submitted by byrnie on Thu, 2011-04-21 09:41Image/Video:
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The proposed changes to conflict of interest legislation will bring about balance in a very competitive South African insurance industry.
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Currently under review, the proposed changes to conflict of interest legislation will bring about balance in a very competitive South African insurance industry. With players ranging in size and budget, the legislation aims to provide for a competitively neutral space for players to compete on an equal footing.
The strength of the MUA brand and our ability to compete regardless of immaterial financial matters, give us confidence that we will benefit from this new change, spearheaded by FAIS.
It is easy for some to assume that insurance offers presented to them are pure and without the intention to influence or persuade buying decision. However, this trust can be abused and often lead to entrapment where consumers are offered discounts for the placement of high volume business or broker schemes, which promote a conflict of interest.
The new legislation will enable consumers to take fair decisions on where or what type of business they would prefer to place with whichever player in the industry.
A practical example of how it may change the way insurance operators such as MUA deal with brokers is the new proposed allowable margin of R1 000 per individual per year for the purpose of entertainment.
A positive long term effect on sound corporate governance is expected to be the result and to the benefit of all role players.
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MUA is pleased to announce Dawie Loots has joined the team as the new Executive Head of Finance for MUA Insurance Acceptances.
Submitted by Michaela on Wed, 2012-04-04 15:49Image/Video:
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In order for you to get to know him better, we asked him to spend five minutes with us and answer a few of our profile questions....
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What is your previous experience before being appointed as the Executive Head: Finance for MUA?
After qualifying as a Chartered Accountant with PwC, I gained experience in auditing, the motor industry, banking, and most recently, the wine industry.
After qualifying as a Chartered Accountant with PwC, I gained experience in auditing, the motor industry, banking, and most recently, the wine industry.
What are your roles and responsibilities as the Executive Head: Finance?
I will be responsible for planning and controlling the company's overall financial plans and policies, accounting practices and relationships with lending institutions, shareholders and the financial community. I will also have to develop appropriate accounting and statistical procedures for preparing financial reports and maintaining fiscal records, and to appraise operating results in terms of costs, budgets, operating policies, trends and increased profit opportunities.
I will be responsible for planning and controlling the company's overall financial plans and policies, accounting practices and relationships with lending institutions, shareholders and the financial community. I will also have to develop appropriate accounting and statistical procedures for preparing financial reports and maintaining fiscal records, and to appraise operating results in terms of costs, budgets, operating policies, trends and increased profit opportunities.
How did your previous industry experience assist you in this role?
In my career so far, I've gained valuable experience in financial management and I believe that this will stand me in good stead at MUA. Although the insurance industry is very different to, for instance, the wine industry, the fundamentals of financial management stays the same, regardless of industry.
In my career so far, I've gained valuable experience in financial management and I believe that this will stand me in good stead at MUA. Although the insurance industry is very different to, for instance, the wine industry, the fundamentals of financial management stays the same, regardless of industry.
What do you think are some of the biggest challenges in your position?
The biggest challenge for me personally would be to learn as much as I can about the insurance industry and to apply my previous working experience and knowledge to my new position. I look forward to doing this!
The biggest challenge for me personally would be to learn as much as I can about the insurance industry and to apply my previous working experience and knowledge to my new position. I look forward to doing this!
What is your advice to people wanting work in the Finance department?
Be prepared to roll up your sleeves, get your hands dirty and always be willing to learn.
Be prepared to roll up your sleeves, get your hands dirty and always be willing to learn.
What is your favorite way to relax after work?
Kick off my shoes, turn on some music, watch the sunset and spending time with my wife.
Kick off my shoes, turn on some music, watch the sunset and spending time with my wife.
What is your personal motto?
Give your best in whatever you do, make every minute count, and above all, have fun.
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Does my client have to pay a basic excess when reporting a claim?
Submitted by Michaela on Wed, 2012-04-04 12:03
Your client is liable for the first amount payable (excess) of any claim unless they are 55 years of age (this applies to the basic excess only).
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How To Avoid Underinsuring Your Jewellery
Submitted by Michaela on Tue, 2012-03-06 08:32Image/Video:
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With the price of gold having more than doubled over the last five years, many consumers may be unaware that this may have had a significant impact on the value of their jewellery when insuring it against theft, loss or damage.
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This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptance, who says it is imperative that all consumers perform regular valuations of high value items such as jewellery to avoid underinsurance.
"If the insured value of the item is not increased to its current value, then not only will the jewellery owner be underinsured but some insurance companies may also impose penalties for invalid valuations.
"For example, if a consumer purchased a diamond ring in 2007 valued at R65,000, the current replacement cost of the ring could be as much as R120,000 due to fluctuations in the price of gold and other precious metals, so it must therefore be insured for this higher amount in the event of a claim."
Read more by clicking on the link below:
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GAS INSTALLATIONS – IMPLICATIONS FOR HOMEOWNERS
Submitted by Michaela on Mon, 2012-03-05 12:28Image/Video:
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Due to the rapidly increasing cost of electricity, gas installations have become increasingly popular in many South African homes, yet despite this burgeoning trend, most homeowners are unaware that there are specific regulations that they must comply with when installing gas equipment in their homes to ensure their insurance policy remains valid.
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According to the regulations that were introduced in 2009, all gas installations must have a Certificate of Conformity according to the Pressure Equipment Regulations that have been promulgated under the Occupation Health and Safety Act (No 85 of 1993).
While this may sound like a complex, legal document – essentially it is a certificate that states that the installation has been properly inspected and is determined to be safe and leak free. It is critical that this certificate is also issued by an authorised person who is registered with the Liquid Petroleum Gas Safety Association of Southern Africa (LPGAS).
According to the regulation, any client who has a liquid gas installation installed in their home must have this certificate, which is usually obtained during the installation phase. However, it must be highlighted to all clients considering gas installations that the onus is on the homeowner themselves to ensure that they have this certificate in their possession, not the installer.
If your client’s home is damaged or destroyed, as a result of a defective gas appliance – and they do not have a valid certificate issued by someone registered with LPGAS – the insurance implications could be significant. An insurance company would be well within their rights to repudiate a claim, which could have severe financial repercussions for the client.
Having the installation inspected and approved is a quick and easy process – provided the installation has been done correctly – much in line with similar requirements for electrical installations, which also require a certificate of compliance under the Machinery and Occupational Safety Act of 1983.
The types of gas installations that require this certificate include gas fires or braais, gas stoves and ovens, as well as hot water systems.
It is also vital to stress to clients that such an inspection is not just essential for their insurance policy to remain valid, but even more importantly, that it is conducted to ensure that the installation is safe and their family is not put at risk. If a gas appliance has been incorrectly installed and results in a gas leak this could have major health implications for a family, not to mention the huge danger involved of an explosion.
It is also important to advise your client that if they wish to sell their home and they have a gas appliance installed, they are required to obtain the certificate and deliver a copy thereof to the new purchaser.
LPGAS provides the following useful tips regarding gas safety which you can pass onto your clients:
- Always use a registered installer
- Always use a qualified gas dealer
- Always use a verified and tested gas product
- Always check the seal on a cylinder matches the brand of the cylinder
- Always check gas appliances before use
When it is time to renew your client’s home insurance policy, remember to speak to them about any gas installations they may already have on the property or if they are planning on doing so in the future. Highlighting legal requirements that could impact on their insurance and making sure all of your clients are aware of the above requirements is the job of a valued broker and can be an important differentiator.
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Who should my client’s phone if they are involved in a motor accident?
Submitted by Michaela on Mon, 2012-03-05 10:54
Should your client find themselves in a situation where they require assistance the number to dial in the case of an emergency is 0861 000 MUA (682)
MUA deals with the best service providers of luxury brands every day. If your client is in an emergency, an MUA endorsed provider will ensure they are taken care of. Allow our emergency assistance to arrange their towing after an accident.
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A house is probably one of the most expensive purchases consumers will make in their lifetime
Submitted by Michaela on Thu, 2012-01-19 15:28Image/Video:
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It is therefore vitally important to fully understand the insurance implications when purchasing a new home so that you can ensure you are financially covered in the event of any loss or damage.
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It is therefore vitally important to fully understand the insurance implications when purchasing a new home so that you can ensure you are financially covered in the event of any loss or damage.
Read more by clicking on the link below:
A house is probably one of the most expensive purchases consumers will make in their lifetime
Source: ITI news
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Stricter rules for pool owners could be on cards
Submitted by Michaela on Thu, 2012-01-19 13:58Image/Video:
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The rules governing swimming pools could become a lot stricter across SA if proposed legislation for Joburg is introduced around the country.
Marike Stals, legal and compliance manager at MUA Insurance Acceptances, says it is essential that consumers make sure they are aware of the legal and insurance implications of owning a swimming pool as new legislation could eventually place even more onus on the owner.
Read more by clicking on the link below:
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- 46 reads
