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While the vast majority of currencies are also undervalued to the dollar – Brazil by 32%, Argentina (-39%), India (-56%) and Turkey (-64%) – none beat the rand. The rand was even weaker than the Russian rouble (-66.5%)

Only Sweden, Lebanon and Switzerland are considered overvalued against the dollar.

As recently as a decade ago, the rand was “only” undervalued by 39% against the dollar.

There are many pressures on the rand, including concerns about government's ballooning debt, and the impact of the coronavirus pandemic and load shedding on an already weak economy.  

Over the past three weeks, the rand has received a boost from strong gold prices – South Africa is among the world’s biggest gold miners. It was also bolstered by a surprise current account surplus, the first in 17 years.

In the first quarter of 2020, South Africa exported almost R70 billion more in goods and services than it imported. This is good news for rand demand, as it means that fewer local importers had to sell rand and buy overseas currencies to pay for their imported goods.

 

Article courtesy of Business Insider South Africa

Chief economist for Allianz Ludovic Subran said emerging economies like South Africa will have a difficult 18 months ahead because of the COVID-19 pandemic 

He said the economy of India, which still believed it could grow to be the next China, would also only recover in 2022.

Meanwhile, Chinese economist Shen Jiashuang said that China was recovering but he warned that consumer demand still remained lower than production.

The two were panellists on a world economic forum webinar on the global economic outlook .

With Load shedding and severe cold weather in full swing, the use of residential generators is once again in the spotlight.

We would like to make our clients aware of the risks and Laws associated to the installation of individual free-standing generators and how it can affect your insurance policy, if not installed correctly.

This is a legal requirement and failure to comply with these requirements could possibly invalidate your insurance, should it be established that a fire or injury is caused as a result of the incorrect connection of the generator.

It is very important that you inform your broker and insurer that you have installed a generator. This will be noted on your policy and the following safety practices must then be complied with to ensure full cover for damage caused by generators:

1. The generator is installed in a well-ventilated position, and an electrical COC covering the connection has been issued.
2. A 4.5kg DCP fire extinguisher is installed near to the generator.
3. Any spare fuel is stored in steel containers and in a safe place. Not more than 50 litres of petrol or 200 litres of diesel (other than the fuel in the tank of the generator) is stored inside the building.

For any assistance or advice regarding the Do’s and Don’ts of safe installation of home Generators give us a call on 031-5021922 or visit our website www.esbrokers.co.za and leave your details.

Article courtesy of CIA (Commercial & Industrial Acceptances (PTY) Ltd

Coping with a pay cut is as much about managing your emotions as it is about managing your money. You have to get over the anger, hopelessness or denial and get planning. Here’s what you need to do.

A budget is a plan for your money, and if you don’t have one, you have no control over your finances. If you’ve never budgeted, now is the time to start. Your budget doesn’t have to be complicated. In fact, the simpler the better. 

Begin by listing all your expenses, starting with your fixed expenses, such as your home loan or rent; rates; car repayments; life and other short-term insurance premiums; school fees; and all debit orders for expenses such as a cellphone contracts and any credit agreements, including credit cards.

Now list all variable expenses, such as food, electricity and transport costs.

A budget balances what you spend against what you earn. If you’re spending more than you earn, you’re living on credit, which is a road to financial ruin. You have to cut your expenses so that you’re living within your means.

Times such as these call for boldness. You may need to downgrade your car or your house or move your kids from private to public schools.

Be discipled when discriminating between needs and wants. Needs are for survival and the rest are wants. Reduce your spend on non-essential items such as cellphone costs. 

With most of us still under the lockdown, we aren’t spending on eating out, travelling to and from work, or ferrying children to and from school and extramural activities. For many people, cutting these expenses has led to a substantial saving. 

The same applies to any other regular expenses that may have fallen away, such as a gym membership that has been frozen. Tally up all you’re saving, no matter how small the saving may be, because this can soften the blow of loss of income. 

Many people who have taken a pay cut have cut back on their school fees accordingly. So, if you’ve taken a 30% pay cut, consider paying 30% less on your school fees for now.

If your pay cut is temporary and any of your creditors are offering you a payment holiday, consider taking it. A payment holiday is typically an extension of the term of your credit agreement by three months. It can have the effect of freezing your account for a period, giving you a break from paying for three months, providing you with some relief. 

Just make sure you understand exactly what the long-term cost implications are.

Payment holidays are typically only offered to customers who are up to date on their payments, but some banks are offering them to those who were no more than two months in arrears.

If you weren’t too far in arrears, make a proposal to your bank, showing that you’re living frugally and are serious about paying as much as you can as soon as you can. If you show goodwill to your creditors, they are more likely to extend goodwill to you. 

Never just stop making payments. A credit agreement is a contract and failing to pay has consequences from an impaired credit report to judgment being taken against you. A life policy is a contract, too.

Rather than cancelling insurance policies, review your cover and reduce it where possible, so that your premiums are reduced. 

“You still need life cover for the benefit of your dependents. Your risks are still there. So speak to your financial adviser to find out if your policy comes with premium waivers or if there are features that you can do without.

Getting the buy-in of your family is crucial when you, as the breadwinner or a contributing member of the family, suffer a pay cut. It is most likely that everyone will have to make sacrifices so the new household budget works. 

Speaking candidly to the family about money is necessary so that everyone understands the impact of your pay cut, and so that everyone’s expectations are managed. This is especially important if you’re helping support members of your extended family.

“Remember, you can’t give what you don’t have.

As hopeless as things may seem, don’t forget that this will pass. It’s perfectly normal to feel discouraged, but don’t allow yourself to “camp” there. You’re not alone.

For now, we all have to get used to living with uncertainty, which means living one day at a time. Try to be upbeat. It’s necessary for your mental health and that of your family. 

“Our emotional well-being is being tested severely at this time and that everyone needs support they can draw on, whether through spiritual beliefs or family. 

Also, he says, don’t neglect your hobbies, especially if you could make money out of them. If you are an expert in your field of business then consider being a knowledge Broker by offering your skills in return for a consultation fee.
If you are adding value people will always pay money to learn more and where they can collapse time frames to achieve their goals.

For any assistance on your Short term Insurance, whether its an alternative quote of advice on ways to cut your premiums without exposing your risk, give us a call on 031-5021922 or leave your details on our website www.esbrokers.co.za.
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Article courtesy of Business Live, written by Angelique Arde’

The recent hike in home invasions is a cause for concern that is only further complicated by load shedding. With many working from home, it’s important to ensure your security system is equipped to handle the frequent power outages so that you are not left vulnerable during load shedding periods. Understanding the impact load shedding has on both your security system and your security provider will help you prepare and could save you a world of trouble during power outages.

1. Know how to contact your security provider in an emergency. 
Inundated by numerous “A/C Fail”, “low battery”, and “false alarm” signals, our control centre prioritises Panic Signals. So, make sure to use your Blue Panic Button in an emergency or press your fixed or remote panic button for at least 3 seconds.

2. Check your alarm system’s battery. 
Your battery’s performance and lifespan are impacted by consistent power outages. Watch out for trouble indicators on your alarm system that warn you of a low battery and replace your batteries when needed.

3. Ensure your outdoor security devices are set to withstand power outages. 
Your outdoor security devices draw up to three times more power than indoor devices. In order to even out the power distribution, it is recommended that an additional power supply be installed. This additional power supply should also have its own back-up battery, to ensure your alarm can withstand being powered up for longer periods of power outage.

GENERAL LOAD SHEDDING SAFETY REMINDERS:

4. Install reserve batteries for your fence, gate or garage door. 
Avoid being locked out of your property or left vulnerable to criminals with a gate stuck open. Remember to also test these batteries regularly, especially if you haven’t replaced them for a few years.

5. Switch off all appliances 10 minutes before load shedding kicks in. 
When the power returns, turn them on one by one. This should lessen any fire risk or damage caused to appliances due to power surges.

6. Install solar-powered security and garden lights. 
A home shrouded in darkness makes you a target to opportunistic criminals. Keep your property lit and secure with strategically placed solar-powered lighting.

7. Invest in battery or solar-powered lights to keep around the home.
Avoid any fire risks by steering clear of candles. However, if you do rely on candles for light then remember to be careful of the open flame. A fire can start and spread so quickly due to an overturned candle or one that is too close to a curtain or other nearby flammable material.

8. Invest in a phone power bank.
Keep it charged and carry it with you wherever you go, so you never have to see that dreaded low battery alert.

9. Back up your data. 
If you run the risk of losing important data during a power outage, make sure you protect your data with online cloud-based back-ups.

10. Freeze a bottle of water and keep it in your fridge. 
Although it’s less of a worry during Wintertime, your food still runs the risk of going off when your fridge or freezer is without power. Freezing a 2 litre bottle of water will help keep your food colder for longer.

11. Keep a thermos flask of hot water. 
Although this is more of a helpful Winter hack than it is a safety tip, make sure you keep this thermos flask in a safe place, out of the reach of children who could potentially burn themselves.

July is National savings month, and it couldn’t come at a more opportune time, as millions of South Africans’ finances have taken a massive hit from the effects of lockdown on the economy. Insurance premiums are often an easy target for people looking to cut costs – and here’s how to do it without leaving yourself exposed.

The whole point of savings month is to encourage and enable people to take control of their own financial future, and it’s exactly the same with insurance.
You have to know what your risks are, and then work with your insurer to get the best possible deal.

1. Shop around. If you feel you’re paying too much for your short-term insurance, don’t settle for the first quote you get. You’ll be surprised by how much premiums can vary between insurers and Brokers, for exactly the same car, buildings and home contents cover.

2. Combine your policies. Most insurers will make it worth your while to bring all your business to them, starting with additional savings for putting more than one car on the same policy. Try including your buildings insurance and your home contents cover as well. Your savings will increase even further, and your life will get a whole lot easier.

3. Check your excess. Your excess is the first amount payable on any claim, and the excess you choose affects the premium you pay. Generally, the higher the excess you choose, the lower the premium you pay – but choose very carefully, because you need to be able to pay the excess amount if you claim.
   The other thing to consider is that if you set an excess of R10,000, and you sustain damages of R8,000, for example, you effectively have to foot the bill yourself.

4. Reduce your risks. All insurers base your premium on your risk. So, if you’re suddenly driving a lot less as a result of lockdown restrictions, your risk – and your premium – should reduce as well. You can also lower your risk by improving your home security, for example, and parking in a garage rather than on the pavement.

5. Driving less, you should pay less. The value of your car decreases every month – so surely, your car insurance premiums should, too?
   There are discounts available for Social use only and some Insurers offer a low mileage discount on certain vehicles.
   Explore these options and ask questions, you will be surprised as to what you would be able to negotiate, if you just ask.

6. Review your buildings and home contents insurance. Make sure your buildings and home contents are covered properly, which means making sure they’re covered for their current replacement value. Being under-insured could prove to be a very expensive mistake. As an example, if you insure home contents worth R1 million for R500,000, you would only be paid 50% of any claim. remember its not just as a result of THEFT, as lightning, storm and power surge perils are sometimes unavoidable.

7. Look after your credit score. You should look after your credit score as carefully as you do your car or home, because having a good credit rating positively affects your premium. Insurers prefer to do ITC checks before quoting, the better the score the more the discount.

If your finances have been affected by COVID-19, the most important thing is to talk to your insurer or Broker to see what you can afford: Don’t leave yourself uninsured or under-insured at a time when you need it the most.

For any assistance and/or advice please visit our website www.esbrokers.co.za or phone our office on 031-5021922.
We would be glad to Help.
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Article courtesy of King Price taken from Cover Magazine.

The reality is that violent protests are on the increase across South Africa and may cause costly damages to an Individual’s or Business’ Property.

Most small businesses don’t have SASRIA Insurance as they see it as an additional cost. When there are strikes, they could lose their entire properties and business if they don’t have SASRIA Insurance cover.

What is SASRIA?

SASRIA is a State-owned Company which was established with the sole intention of providing cover against special risks such as civil commotion, public disorder, riots, strikes and terrorism.

They are the only short-term Insurer who provides “special risk” cover to all Individuals and Businesses who own assets in South Africa.

SASRIA is attached as a “coupon policy” to your main policy as a standard feature with your conventional Insurer in respect of your buildings, vehicles and other assets.

Exclusions under SASRIA:

Consequential loss or damage, or loss or damage caused or contributed to by:

1. Looting and theft, unless caused by any of the covered events mentioned above

2. Property being dispossessed or confiscated by any lawfully established authority

3. The stopping or deliberate slowing down of work

4. Any act of terrorism involving the threat of or actual use of any nuclear weapon or device and/or the threat of or actual use or release of any chemical or biological agent.

SASRIA enables Businesses to recover quickly and efficiently after experiencing a loss or damage due to special risk related events. 

Delayed gratification is worth the reward

Paying for your short-term insurance diligently each month is hard to “enjoy”, but the relief when a claim arises and is covered, is such a reward for the effort of committing to your cover. It’s a good concept to grasp early; healthy routines result in reward, even if only down the line. It can be difficult to understand budgeting for insurance each month, instead of spending money on something tangible like the latest tech gadget. Keeping that gadget safe, however, is part of understanding how insurance works. Explain that insurance can replace items if they are properly insured but sticking to safety measures matters too. They’d need to be responsible with their insured item all the time; learning that consistency adds up to stay covered.

Keep safety in session always

Getting your kids to think practically about safety can go a long way. They should know how to lock up your home, they should know where certain items are kept (some examples might include where the torch is kept in case the power goes out, who to call in what type of emergency and where spare sets of keys are stored). Having a routine place for kids to store anything they carry along with them, like their keys, is a good practice to follow. The idea is to have your kids think responsibly with clear guidelines to refer back to. Keeping track and caring for their possessions is another important life lesson that is best learnt early. Kids need to know replacing items (a bottle/jacket/school jersey/shoes) costs money and needs to be funded from the family budget. They are more likely to take responsibility and less likely to lose items this way.

Lying will result in crying

Instilling good life principles, such as being honest, goes a long way (especially later in life). Your kids should be aware that lying can result in consequences.

While insurance cover won’t be as coveted as the latest gadget, the concept of losing privileges as a result of lying is all you need to get across. Honesty is the best policy when it comes to maintaining insurance cover; if you are caught to be misrepresenting the truth, you are likely to have your policy terminated, which will make other insurers less inclined to insure you in the future.

Good advice gets good results

Encourage your children to seek the assistance of an adviser when they are older, as they can help us consider the bigger picture. Even though it is your own responsibility to ask for the insurance you need, having some professional insight into how much you should have, or whether you have considered every angle of cover you might need, is the way to get the most out of having insurance in the first place.

It is a monthly expense that can be hard to part with if you aren’t seeing anything to show for it. But you’re actually paying for an invisible safety net, and come the day you need to claim, you’ll be so glad you stuck with it. The best outcome from short-term insurance, is to keep it in place consistently, as you never know when you might need it.

Article credits go to FA News
written  Bertus Visser, Chief Executive of Distribution at PSG Insure