Catastrophe Presentation Nov 2011

Presented by Mokgadi Sebola
Customer Relations Officer
FIA Road show
 Sasria SOC Limited is a short term insurer for special risks such as riots,
strikes, terrorism
 Sasria is the only insurer for special risks in SA
 It was formed as a direct result of the 1976 uprisings
 It has been in existence for over 30 years
Current Product offering
Sasria Wrap
R1bn Coupon = MD + SC or WE
Primary Coupon
R500m Coupon = MD + SC or WE
Current Business Interruption
 Fixed costs of the business – no net profit
Method of arranging Sasria BI
 Specified Standing Charges
 The List of Standing Charges must be provided
 There must be a Sasria Material Damage Coupon in force covering the
same interest and period
 The Sum Insured must represent the list of specified standing charges
(Not the Conventional Policy Sum Insured)
 Uninsured Working expenses
 The List of Uninsured Working Expenses must be provided
 The Sum Insured must represent the insured working expenses
(Not the Conventional Policy Sum insured)
 Accepted formula: GP – NP = WE
New Business Interruption
 Effective 1st Sept 2012 net profit cover available within the
R500m Coupon ONLY
 There must be a Material Damage Coupon to which the BI
cover will attach – not available on its own
 SC/WE cover still available without the full BI cover
 Current SC/WE rates applicable to the full BI
 No extensions
New Business Interruption
 Policy wording:
To be finalised and will be communicated during the road shows & before the
 Regulation:
The Regulations are currently being finalised .
 Cover:
Cover is now comprehensive, but it excludes extensions.
Clients still have an option to take only the current SC/WE cover only, in
which case the rate would be applied to the SC/WE value .
New Business Interruption
 Rating:
Rates are as per the SC/WE, the difference will be the sum insured that the
rate is applied to if the full BI(higher sum insured) is taken
 Existing insurances:
With the new product in place, this has to be purchased
from Sasria unless dispensation is obtained
Business Interruptions
Uninsurable extensions (Additions)
Fines and penalties
Prevention of access
Public utilities
Public telecommunications
Accountants clause
Accumulated stock clause
Output clause
Incompatibility cover
Customer Relationship
General update
Customer Relationship Management
 Due to the Sasria business model, partnership between Sasria, agent
companies as well as brokers is critical in providing excellent service as well as
adequate insurance covers to our mutual clients.
 Effective functioning of the value chain is of key importance to Sasria, hence
the establishment of the Stakeholder Management Division.
 To further improve the interaction between Sasria and its distribution channel,
Sasria developed and implemented a Customer Web Portal (CWP). The portal
has a document management facility for claims administration, underwriting
administration, and e-coupons.
General update
Customer Relationship Management
 Understand the industry needs and devise means of meeting same
 Technical support
 visits to Agents and Brokers
 assistance with Regulations
 Compliance with audit findings
 Dissemination of product knowledge to all stakeholders
 Agent/Broker specific product training sessions
 Industry product training session
Zandspruit service delivery protest, 2011 (Source: News24)
Changing Environment
Change in trend
 South Africa has experienced prolonged industrial action which
could pose a risk to economic growth and investment
 Social media used to arrange protests
 High unemployment (25%) which will have catastrophic
consequences to our society
 Unemployment among the youth and graduates is a worrying factor,
this may lead to uprisings similar to Arab uprisings
 Misguided economic views because of anger and no hope from our
 Social needs – increase in service delivery riots
 Human rights violations
 Increasing food prices / food security concerns
Claims Procedure
Claims Procedure
Claims Notifications
Claims Registration
 Required documentation
 Preliminary Claims advise Form
Sasria Coupon/Policy
Underlying Policy Schedule
Claim Form
Quantum documents (quote, invoice, etc)
Additional documentation
 Duties of the Agent
Claims Procedure
 Preliminary Claims Advise Form
Sasria Coupon/Policy
Must be submitted with all first notification documents.
Must be completed in full.
Period of Insurance and Risk
Underlying Policy Schedule
Non-Motor - Cover details
Motor – stand alone
Claims Procedure
 Claim Form
 Agent’s claim form
 Insured’s statement
 Glass claim form
NB: Claims less than R50K are fast track claims
 Quantum documents
 At least two quotes
 Invoices
 Clearance Certificate
Additional documentation
 Endorsements to the Coupon
 Deductibles
Claims Procedure
 Salvage
 No party to salvage contracts
 Prescription
 Non-motor
 Motor
Sasria Release
 Payments
Claims statistics: 2011/2012
period ended
period ended
31 March 2012
31 March 2011
New claims
Closed claims
Number of outstanding claims
(end of financial year)
Average age of closed claims
90 days
127 days
Loss ratio
1. A high number of claims were received in 2011/2012 mainly due to the : taxi strike, truck driver strikes, and
disgruntled commuters
2. Despite the increase in claims frequency, the claims severity was better than last year.
The double digit loss ratio for second year in a row confirms the new claims trends as well
as an upward movement in claims submitted
3 Loss ratio as at end March 2012 is 22%
Claims statistics: 2011/2012
Claims outstanding per peril: end March 2012
March 2012
Non Political Riot
Political Riot
Thank you

similar documents