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Introduction
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 launch
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
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
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
youth Social needs – increase in service delivery riots Human rights violations Increasing food prices / food security concerns
Claims ProcedureClaims 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
Must be submitted with all first notification documents. Must be completed in full.
Sasria Coupon/Policy
Legibility Period of Insurance and Risk Backdating
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
Description period ended
31 March 2012
period ended
31 March 2011New claims 1168 504
Closed claims 1086 445
Number of outstanding claims(end of financial year)
196 173
Average age of closed claims 90 days 127 days
Loss ratio 19.64% 22.60%
Note: 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
15%
13%
73%
March 2012
Non Political RiotPolitical RiotStrike
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