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“Trying to navigate the terms and conditions of your insurance cover can be challenging, especially if you’re trying to compare insurance quotes and conditions of cover as these can vary markedly from one policy and insurer to another. One of the best investments you can make in safeguarding your hard-earned assets is to get the advice and guidance of a professional insurance broker who will be able to compare product benefits, technical specifications, terms of cover and pricing to find an insurance solution that is best suited to your needs and circumstances,” explains Mandy Barrett of Aon South Africa, a leading global professional services firm and insurance broker.

Aon lists a few common insurance terms and conditions to help you understand your cover better, and thus make better decisions about your risk planning:

• Insure for the retail value of the vehicle - Ideally, you want to be in a situation where your insurance can replace ‘like for like’ and avoid being paid out less than the value of your vehicle. Essentially, retail value is the price at which a vehicle dealer will sell a vehicle to you. Market value is the average of the difference in price between retail value and its trade-in value, in other words what you could expect to receive from a dealer if you were to trade the vehicle in.  Always insure your vehicle at retail value.
• New replacement value - If you buy a brand, new vehicle and it is written off within the first year, the vehicle would normally be covered for the replacement value of a new vehicle.
• Credit Shortfall Insurance – A risk that is often overlooked is that of a credit shortfall on a financed vehicle.  This typically arises when a vehicle is written off in the first two years of signing a finance agreement to purchase the vehicle.  Accrued interest on the loan within the first few years may very well mean that your insured value of your vehicle could actually be less than your outstanding debt to the bank.  If you don’t have credit shortfall cover to settle this amount, you will be liable for the shortfall between what’s owed to the bank, and your insurance settlement which does not cover you for the interest.  
• Replacement Cost – refers to the amount it would cost to replace or rebuild an item of similar quality using materials and goods that are currently available. Many make the mistake of insuring their home or valuable items for the value that it was bought for, while the cost of replacing the entire structure of your home for example could be far more than what you paid for the property ten years ago, leaving you financially compromised in a worst-case scenario. 
• The Average Formula - If you are under-insured in the event of a loss, the insurer will assume that you have elected to carry a portion of the risk yourself. As a result, you may find yourself in a situation where you are paid partially for a loss at claims stage due to the average formula being applied. It means that if your property is under-insured by 40%, for example, then you may only be paid 60% of your claim, regardless of whether it is a partial or total loss.
• Valuation – Refers to a financial assessment of the worth of an item, or the monetary value associated with an asset to insure it for. A good place to start is making a comprehensive inventory list of all the items in your home to gain a better understanding of the structure’s worth, as well as all the contents and fixtures in it. In the case of appreciating assets such as jewellery and artwork, it is highly recommended to update your valuation certificates every year and to insure it for its current replacement value. 
• All Risks Cover – Household contents cover is usually applicable to items that stay within your home. As soon as an item is taken outside of your home such as jewellery, smartphones, laptops, sports equipment, designer sunglasses or luggage, these items are no longer covered. It’s one of the reasons why it is important to specify the items that may ‘travel’ with you under the ‘All Risks’ section of your household contents policy.
• Excess – In most insurance policies a claim is subject to the payment of an ‘excess’ (sometimes also called a ‘deductible’), which refers to the first portion of the claim that you are responsible for. In the insurance world, it translates into you taking on a portion of the financial risk that affects your insurance premium whether it is a fixed amount or a percentage of the claim. Be very wary of taking the lowest premium as the bite is often in the high excess structure – in some instances this can be as much as 25% of the insured value or a fixed fee - whichever is the greater. If you consider a claim value of R100 000, the excess at 25% would be R25 000 – very few people have that kind of spare cash around to cover their excess payment. Make sure to discuss your excess options with your broker. 
• Escalator Clause - An escalator clause is a provision within an insurance policy that allows for an automatic annual increase in the sum insured to cover any unexpected costs arising from future fluctuations, that can either be linked to the Consumer Price Index (CPI) or can be stipulated as a set percentage.
• Wear and tear – maintenance-related losses are one of the key reasons for a claim being rejected or the settlement being less than expected. Remember that insurance is there to cover sudden, unforeseen circumstances which result in loss and/or damage and does not cover damage as a result of negligence or wear and tear. Examples of wear and tear include rising damp around your house, water leaks left unattended that could lead to major structural issues on your home, smooth tyres on your vehicle which could cause an accident or blow out and so on.  
• Safety measures – Your insurance cover may be subject to certain security measures that need to be in place, such as burglar bars on all opening doors and windows, a tracking device on your vehicle or arming your alarm system when not at home.

The guidance of an experienced broker adds tremendous value in guiding you towards a better understanding of the terms and conditions of your cover. Your broker will make sure that you are not compromised or prejudiced by unreasonable or onerous limitations on your cover, and that you are comparing apples with apples when it comes to premiums and excesses - the most important consideration being that if and when you need to claim, that there are no surprises waiting for you that could leave you compromised.

Photos by Pixabay
Article by Insurance Gateway
Written by Mandy Barrett of AON South Africa

“Car rental companies in South Africa trimmed their fleets during harsher levels of lockdown and are now struggling to restock amid global supply chain disruptions and a shortage of semi-conductors. Travel, whether for business or pleasure, has been a casualty of the Covid-19 pandemic. Border closures, flight suspensions, remote work directives, and a general reluctance to travel have decimated industries reliant on the movement of people. Car rental companies responded to this downturn by downsizing their fleets. By December 2020, around eight months after South Africa first entered a coronavirus-induced state of disaster, the total number of available rental vehicles had dropped by 60%.

A year later, fleet sizes remained at half of pre-pandemic levels, with South African car rental companies tentatively attempting to replenish their stock ahead of the busy festive season. Supply far outstripped demand, according to Drive South Africa, which conducted a survey among 13 major rental brands. The shortage of rental vehicles has shown little sign of improvement at the start of 2022, with travellers still advised to book well in advance as companies struggle to scale up. This has been made worse by the coronavirus' knock-on effect on global supply chains, especially for electronic components.

"All car rental suppliers anticipate that the manufacturing industry's semi-conductor shortage will remain in place for some time. It will continue to have a significant impact on their purchasing efforts worldwide, Rennies BCD Travel recently noted in an email to clients. "The immediate effect is temporary shortages in the available fleet, which is expected to remain an issue for the foreseeable future.

" Automakers cut their semi-conductor chip orders in 2020 as vehicles sales plummeted. This, coupled with the long-standing issue of insufficient capacity at semiconductor factories and demand recovering faster than anticipated, has led to a shortage of semiconductor chips .And although semiconductor manufacturers have rushed to increase production, delays in the supply of chips are expected to last for much of 2022. That's bad news for car rental companies looking to increase their fleet sizes and capitalise on the resurgence of travel.

"The car rental agencies are looking to increase their fleet now and the conductor shortage is making it more challenging," Ellena van Tonder, the sales and product manager at Drive South Africa, told Business Insider SA. "There is a severe shortage of rental vehicles in South Africa affecting both short and long lead time bookings, depending on the type of vehicle the client wishes to rent.

" South Africa's total industry fleet size is projected to be 75% of the pre-pandemic fleet size by 2023. But this all depends on how quickly the global semiconductor shortage can be resolved. Motus, which represents more than 300 dealerships in South Africa and provides rentals via the Europcar and Tempest brands, reports that the shortage of new cars has led to a surge in demand for pre-owned vehicles.”

Article provided by Business insider
Photos by pexels

The risk of being hijacked is ever increasing in South Africa, but simply being alert can go a long way

While nobody wants to be in a hijacking situation, it is an unfortunately a very real threat for motorists in South Africa.

Recent crime statistics reveal that the amount of hijacking has increased by 3.5% quarter on quarter. In the light of this, drivers need to increase their awareness and do whatever they can to prevent it from happening.

The following tips and rules from motus.cars, supported by Motus Nissan (previously Imperial Nissan), can go a long way in keeping you safe:

1.    Keep an eye out for any vehicles following you

If you are travelling from a shopping centre or airport and are being followed, do not turn into your driveway. Rather drive to a safe place such as a petrol station or the nearest police station.

2.    Make use of protection services

Many armed response companies offer a service whereby they will escort you home when you are planning on arriving home at night. If you are a client of such a company, it is a good idea to make use of this service.

3.    Plan ahead

When arriving home, do not drive straight into your driveway. Park your vehicle in a parallel fashion while you wait for your gates to open, giving yourself a way to escape if you need to.

Once you enter, stop just inside your gate, and remain in your vehicle, while the gate is closing to prevent another car from following you in.

4.    Be alert of your surroundings

When stopped at intersections, do not be tempted to look at your phone. Rather be aware of your surroundings and look out for any possible threats.

5.    Plan according to your surroundings

When parking at a shopping mall, reverse into the parking space, preferably against a wall in order to prevent someone from catching you unaware from behind. This will also allow you to exit the parking quickly if necessary.

TIP: The best practice is to rather be safe than sorry, do an extra circle around the block or ask someone for assistance rather than regret it.

These tips can go a long way to help you be aware of your surroundings and to protect yourself as much as possible, but it is not always preventable. Drivers should learn what they should do to increase their chances to safely remove themselves from that situation:

• Make sure that your loved ones always know where you are and what time to expect you home.
• Install apps on your phone and the phones of loved ones that can be used to track their location.
• Be aware of high-risk areas and high-risk vehicles and if you have to drive in those areas, make sure you are exceptionally alert.

Every year, we resolve to ‘do better’, change things up and be the best versions of ourselves. It’s easy to overlook one’s finances, but money should be a pivotal part of this process.  Managing one’s finances and finding ways to cut unnecessary expenditure has never been more important and quite often we forget to declutter that all-important insurance contract.

Your contract with your short-term insurer is automatically renewed. For most consumers, it simply ‘ticks over’ without the policyholder going over the finer details to check that they’re neither over nor underinsured.  This is all well and good, until the unforeseen happens.

Santam says that ’reviewing’ your insurance policy may even help you save some money in the long run. Marius Steyn, Personal Lines Underwriting Manager at Santam, gives the below five tips on how you can clean up your insurance policy to help you save some money in the long run.

 1) Adjust the amount you’re insured for: The main reason for reviewing your policy is to ensure you are insured for the right amount – this is what insurers call the ‘sum insured’ or ‘limit of indemnity’. Over the course of the past year, you may have bought a brand-new bicycle and a couple of other items, all of which mean you will need to adjust the contents of your home insurance cover. Or maybe, the value of your car has depreciated, and you want to lower the premium you pay, accordingly. Therefore, by ensuring for the correct amount which may result in a slight premium increase, you save money in the event of a claim due to the fact that under insurance, as addressed below, would not be applicable to the loss or damage.

Cyber incidents, business interruption and critical infrastructure blackouts are the top three business risks in South Africa in 2022, according to the Allianz Risk Barometer 2022.

However, the country is not alone in this worry, as cyber perils are also the biggest concern for companies globally.

The threats of ransomware attacks, data breaches or major IT outages worry companies even more than business and supply chain disruption, natural disasters or the Covid-19 pandemic – all of which have heavily affected firms in the past year, the risk assessment firm said.

Globally, cyber incidents top the Allianz Risk Barometer for only the second time in the survey’s history (44% of responses); business interruption drops to a close second (42%) and natural catastrophes rank third (25%), up from sixth in 2021.

Climate change climbs to its highest-ever ranking of sixth (17%, up from ninth), while pandemic outbreak drops to fourth (22%).

The annual survey from Allianz Global Corporate & Specialty (AGCS) incorporates the views of 2,650 experts in 89 countries and territories, including CEOs, risk managers, brokers and insurance experts.

“Business interrupted will likely remain the key underlying risk theme in 2022,” said AGCS CEO Joachim Mueller. “For most companies, the biggest fear is not being able to produce their products or deliver their services. 2021 saw unprecedented levels of disruption, caused by various triggers.

“Crippling cyber-attacks, the supply chain impact from many climate change-related weather events, as well as pandemic-related manufacturing problems and transport bottlenecks wreaked havoc.

“This year only promises a gradual easing of the situation, although further Covid-19-related problems cannot be ruled out. Building resilience against the many causes of business interruption is increasingly becoming a competitive advantage for companies.”

Biggest risks and worries for businesses in South Africa

1.    Cyber incidents

2.    Business interruption

3.    Critical infrastructure blackouts

4.    Political risks and violence

5.    Pandemic outbreak

6.    Climate change

7.    Changes in legislation and regulation

8.    Shortage of skilled workforce

9.    Fire and explosion

10.                  New technologies

Violence, blackouts rising concerns in South Africa

Political risks, violence and critical infrastructure blackouts are rising concerns for businesses in South Africa.

Political risks and violence moved from sixth to fourth in the local ranking, following major losses from physical damage, business interruption, looting, and vandalism caused by the civil commotion, protests and riots that hit KwaZulu Natal and parts of Gauteng in June 2021.

Critical infrastructure blackouts entered the top three risks from sixth showing that companies are concerned about the impact of blackouts on their businesses and the economy.

“Preparation is key – in particular for exposed sectors such as retail,” said Thusang Mahlangu AGCS CEO in South Africa.

“Businesses need to review their business continuity plans (BCP) and should be aware of what is happening around them. Typically, these only focus on national catastrophes, but there is a need for BCP plans to address political disturbances and other types of business disruption like cyber.

“Having defined, and preferably tested, procedures in place is crucial – these should include staff, client and general communication and social media plans. It is imperative for companies to think deeply about how they can best protect their assets and people.”

Ransomware drives cyber concerns

Cyber incidents ranks as a top-three peril in most countries and regions surveyed, including South Africa. The main driver is the recent surge in ransomware attacks, which are confirmed as the top cyber threat for the year ahead by survey respondents (57%), said Allianz.

Recent attacks have shown worrying trends such as ‘double extortion’ tactics combining the encryption of systems with data breaches; exploiting software vulnerabilities that potentially affect thousands of companies or targeting physical critical infrastructure.

“Ransomware has become a big business for cybercriminals, who are refining their tactics, lowering the barriers to entry for as little as a $40 subscription and little technological knowledge.

“The commercialisation of cybercrime makes it easier to exploit vulnerabilities on a massive scale. We will see more attacks against technology supply chains and critical infrastructure,” said Scott Sayce, global head of Cyber at AGCS.

Business interruption (BI) ranks as the second most concerning risk globally, and in South Africa.

In a year marked by widespread disruption, the extent of vulnerabilities in modern supply chains and production networks is more obvious than ever. According to the survey, the most feared cause of BI is cyber incidents, reflecting the rise in ransomware attacks but also the impact of companies’ growing reliance on digitalization and the shift to remote working.

Natural catastrophes and pandemic are the two other important triggers for BI in the view of respondents.

Pandemic preparations improve

Pandemic outbreak remains a major concern for companies but drops from third to fifth in South Africa and second to fourth position globally – although the survey predated the emergence of the Omicron variant.

While the Covid-19 crisis continues to overshadow the economic outlook in many industries, encouragingly, businesses do feel they have adapted well, said Allianz. The majority of respondents (80%) think they are adequately or well-prepared for a future incident. Improving business continuity management is the main action companies are taking to make them more resilient.

Climate change moved up one place to sixth in South Africa and is a new entrant in Africa and the Middle East.

Allianz Risk Barometer respondents are most concerned about climate-change-related weather events causing damage to corporate property (57%), followed by BI and supply chain impact (41%).

However, they are also worried about managing the transition of their businesses to a low-carbon economy (36%), fulfilling complex regulation and reporting requirements and avoiding potential litigation risks for not adequately taking action to address climate change (34%).

New entrant

Shortage of skilled workforce (13%) is a new entry in the top 10 risks at number nine globally and eighth in South Africa. Attracting and retaining workers has rarely been more challenging. Respondents rank this as a top-five risk in the engineering, construction, real estate, public service and healthcare sectors, and as the top risk for transportation.

Changes in legislation and regulation is fifth (19%) globally but moves down three places to seventh in South Africa. Prominent regulatory initiatives on companies’ radars in 2022 include anti-competitive practices targeting big tech, as well as sustainability initiatives with the EU taxonomy scheme, said Allianz.

Fire and explosion (17%) is a perennial risk for companies, ranking seventh as in last year’s survey globally and coming in as a new entrant at number nine in South Africa. Market developments (15%) falls from fourth to eighth year-on-year and Macroeconomic developments (11%) falls from eighth to 10th.

Photo's by Pixabay
Article featured in Businesstech.co.za

With SA’s driving license card printing machine in for repairs, many drivers are worried about how driving without a valid license card would impact their insurance. Feedback from Auto & General below to answer that question.

According to Ricardo Coetzee, Head of Auto & General Insurance:

" If the customer does not have a valid driver’s licence at the time of the loss, but this was as a result of a purely administrative process that is beyond the control of the customer, as now experienced by many members of the public, then the expired licence will not impact a claim. We do however urge customers to continue in their efforts to renew these licences as soon as possible as legally they are still unlicensed to be on the roads. We look at risk when assessing a claim and an administrative delay does not increase or decrease your risk in operating a vehicle.”

Article featured in Automotive Business review
Photos by Pixabay

Some 37% of South African consumers were recently targeted by Covid-19 related digital fraud, according to a recent study by credit rating agency TransUnion.

To help combat this, Sanlam has launched a campaign with comedian and actor Riaad Moosa to help you spot a scam.

“The media is awash with stories about how not to get scammed, and yet people are still falling for these traps,” says Ayanda Ndimande, head of Sanlam business development for retail credit. “Part of the problem is that everyone thinks they’re too clever to get caught out until they are. The pandemic and its effects on people’s pockets have also made many especially vulnerable to these kinds of schemes.”

Internet fraud is particularly effective when people are vulnerable and find themselves in need of a quick credit fix. The pandemic’s economic effects and the pressures of the festive season mean that many South Africans are susceptible to false promises of easy money.

Not all scams are the same; some are more sophisticated than others, but there are a few common red flags to look out for:

Being contacted out of the blue:

Have you ever been walking through the mall and had someone come up to you and offer you money? No? Of course not. The digital world is no different: it is just as unlikely that someone will approach you online with an offer of a generous loan. Scepticism costs nothing but can save you a great deal.

Being asked to share your personal information:

Scammers love knowing everything about you. From your ID number and physical address to your bank statements, they will try to glean as much as they can from you. Be very wary about giving your details to anybody.

Too good to be true:

It is very tempting to think that you may be the luckiest person in the world, but if an offer of a R500 000 loan at 2% interest finds itself in your inbox, then it’s almost certainly too good to be true.

Spelling mistakes:

When was the last time your bank sent you correspondence with spelling mistakes? Reputable companies hire people to make sure that doesn’t happen. Scammers, on the other hand, just hope that you don’t notice. It is also a good idea to check the email address. If it is from a Gmail account, Yahoo or any other free email service then don’t click it.

Pressure:

The more time you mull things over, the less likely you are to be conned. Internet villains know this, and so their schemes often come with a time crunch. Don’t let yourself be pressurised into acting quickly.

Phishing/Vishing:

Phishing is especially vicious, as it’s a scam correspondence framed like it’s from someone you know. For example, you might get an email from your boss, asking you to urgently send funds because there’s a problem with the company account. It looks legit, seems to come from an address almost exactly like your boss’s email address and is signed with your employer’s name. If you get any email asking for funds, immediately pick up the phone and call the right people to verify. It’s especially easy to fall for phishing and vishing (voice fishing for funds on platforms like WhatsApp).

Photo's by Pixabay
Article by Sentinel News   (sentinelnews.co.za)

Top budget dos and don’ts for the silly season and the back-to-school rush, which is just around the corner.

Black Friday is almost upon us and retailers will be offering shoppers attractive deals – some which will be difficult to resist. Due to COVID, online shopping has become more popular and that means extra opportunities for fraudsters to earn some extra income. The online shopping trend has been noticed globally and therefore Phishield recommends that shoppers exercise caution before parting with their hard-earned money.

Before entering your credit card details for that big screen TV that has been reduced by 40%, take note of the following tips to avoid becoming another victim of online fraud:

Fraudsters set up bogus website offerings or social media adverts with specials for holiday accommodation and/or air tickets. The victim then contacts the fraudster who is assumed to be a professional and the price appears to be cheap. The victim then makes a purchase using their credit card details or making and EFT thinking they are buying from a genuine person or company. The purchase goes through but the victim never receives the goods as the company/person was fake. Sometimes the fraudsters then have access to customer’s bank details and can use these fraudulently and could also include stealing the identity of the victim.

Comment seen recently from a Phishield client on social media in relation to a person who had been scammed by an “agent” claiming to represent various hotels in South Africa:

“Check if you don’t have Phishield insurance on your home insurance it actually covers you from cyber fraud, gumtree and holiday scams. I was able to claim after being scammed by an online store.”

Its great to see that clients are recognising the value of the Funds Protect product!

Mrs Smith, like many South Africans, was feeling the financial pressure due to loss of her income due to COVID. She applied for a personal loan through a loan company with a simple application process on their webpage. The company offered an attractive interest rate of 5% and a 3 year repayment plan. The “loan” was approved shortly after applying however, one of the conditions was to pay a “legal fee” before the funds could be released to her account. Mrs Smith, in desperation, made payment of the fees to a bank account held with an “international bank” who held a South African bank account with one of the major banks. However, after Mrs Smith made her first payment, she received constant emails and documents from the “international bank” to make various payments into various account numbers and banks for them to release the loan to her. Mrs Smith contacted her bank to confirm if the bank she had to make these payments to was indeed a trustworthy bank. Her bank confirmed that this is an approved bank as the name used was very similar to that of a recognised banking institution. Mrs Smith received a further request for additional fees to be paid. After adding up the payments made, she realised that she paid them close to the loan amount she applied for and no longer wanted the loan. She requested to cancel the application and refund her money paid, however, they requested for a fee to refund her the monies. Mrs Smith discovered that she had been scammed.

Mrs Smith was unable to recover any of her funds but because she had a Phishield Funds Protect Personal Policy, she was able to recover part of her loss.