REPORT BACK – 2009 SHORT TERM PERSONAL LINES COMMERCIAL & CORPORATE

REPORT BACK – 2009SHORT TERM PERSONAL LINES COMMERCIAL & CORPORATE

IDS AND THE “ACORD”STANDARDS

• IDS COLLECTS DATA FROM INSURERS AND INTERMEDIARIES WHO HAVE THEIR OWN SYSTEMS

• CONNECTIVITY INFORMATION FROM INTERMEDIARIES TO INSURERS WILL BE LINKED TO ACORD STANDARDS

• MEMBERS OF FIA ARE ASSOCIATE MEMBERS OF THE ACORD

SOUTH AFRICAN INSURANCE CRIME BUREAU

• THE SAICB’s FOCUS IS TO MINE THE IDS DATA (they have successfully identified many syndicates and fraud with individuals)

• THE SAFPS (The South African Fraud Prevention Service) and the SAICB share and list fraud data. The SAFPS members include Banks, Retailers and other Financial bodies.

COMPULSORY THIRD PARTY PROPERTY MOTOR INSURANCE

• ONGOING DEBATE AT SAIA/FIA• BIGGEST PROBLEM – COLLECTION OF PREMIUMS• 2nd BIGGEST PROBLEM – AGREEMENT OF DEPT. OF

TRANSPORT• VEHICLE STATS:

LICENCED VEHICLES 8,5m - TRAILERS 1m – 70% UNINSUREDESTIMATE OF UNLICENCED VEHICLES – 6m (also uninsured)

• TOTAL UNINSURED VEHICLES ON SA ROADS 12,650,000

CONSUMER PROTECTION ACT

• Purpose of the Act• The primary purpose is to prevent exploitation or harm to

consumers.• Creating a strong culture of consumer rights and

responsibilities.• Promoting a fair, efficient and transparent market place for

consumers• and business by introducing administrative sanctions, and

allowing• Consumers to demand refunds if goods are of inferior

quality.

Multi-Mark 111 and theCompetitions Commission

• MULTIMARK 111 – IS STILL UNDER REVIEW• REFERRAL TO A HIGH LEVEL AUTHORITY INCLUDING

FSB TREASURY YET TO HAPPEN• ALL PARTIES ARE IN AGREEMENT THAT THE

CONSUMER MUST BE PROTECTED

•

CLIENTS MONEY AND INSURANCE BROKERS

• PUT CLIENT’S INTEREST FIRST• DO NOT MAKE SECRET PROFITS• KEEP CLIENT’S MONEY SEPARATE• CLEAR WRITTEN AGREEMENT WITH CLIENT ON

INTEREST EARNED

SECOND HAND GOODS BILL

• FIA INSIGHT – GOOD ARTICLE FROM MIKE STOKER• REGULATIONS TO THE ACT–NOT PROMULGATED • IN BILL FORM – INSURERS AND THEIR AGENTS

WOULD NOT HAVE TO REGISTER AS A DEALER• THIS MUST BE REVIEWED ONCE THE REGULATIONS

HAVE BEEN PROMULGATED

AMENDMENTS TO POLICYHOLDER PROTECTION RULES

• PROPOSED VARIATION OF RULE 7.4 EFFECTIVE 1 JANUARY 2010

• THE MINIMUM PERIOD OF 90 DAYS IS EXTENDED TO 180 DAYS FOR MAKING RESPRESENTATION TO THE INSURER

SUB-COMMITTEES WORK IN PROGRESS

• DATA PRIVACY

WILLIE GREYLING – ROWLAND RAMALINGHAM

• SASRIAIRENE BEST – ROD PEARSON

OUTRAGEOUS OUTSURANCE ADVERTISEMENTS

• MUTUAL AND FEDERAL WON THEIR CASE OUTCOME WAS SIMPLY THAT OUTSURANCE MUST

WITHDRAW THEIR ADS