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From Accident Scene to Insurance Claim: A Guide for Motorists

Wed, 08 Apr 2026 06:26:37 GMT

Being in a motor vehicle accident is stressful, even when no one is hurt. In the minutes and hours that follow, it’s natural to feel shaken and unsure of what to do next. But a few calm practical steps at the scene and reporting the accident correctly to the police and your insurer can prevent unnecessary delays in processing a claim.

Discovery Insure provides the following guidance on the information you should collect at the scene of the accident, reporting the accident to the police, and how to facilitate the claims process.

What to do immediately after an accident

Your priority is safety. Switch off your engine and turn on your hazard lights. Check for injuries. If you or anyone else is hurt, call emergency services and the police immediately. Make sure you and your passengers are out of harm’s way from passing traffic.

If the vehicles pose a serious traffic hazard and can still be driven, and it is safe to do so, move them to the side of the road. Otherwise, leave them where they are until the police and help arrive.

If you’re unsure of who to call or what to do next, most insurers have an emergency line that can guide you while you are still at the scene.

What information to collect

Gathering accurate details at the scene will make the insurance claims process easier. Exchange details with the other driver or drivers, including full names, contact numbers, identity numbers, driving licence details, and insurance information, if they are insured.

Supplying photos of the scene is not mandatory, but it can help your insurer to process your request faster. If possible, take clear photos of:

The complete scene, including wide and close-up shots.
Damage to all vehicles involved.
Skid marks or debris on the road.
Traffic lights, road signs, or visible road defects (such as potholes), if they are relevant.
Vehicle number plates and licence discs.
The exact location of the accident, including street names.

If available, save and back up any dashcam footage. If there are witnesses, take down their names and contact details.

If your vehicle needs to be towed, arrange this with your insurer to ensure that the towing provider is authorised. Take pictures of your vehicle before it is towed, as well as the tow truck and its number plate and note the tow driver’s name and company. This will protect you in case damage is found later.

Reporting the accident

All accidents – including single-vehicle accidents – involving vehicle or property damage, injury, or death must be reported in person to the South African Police Service within 24 hours. At the station, you will complete an accident report and receive a case number.

A reasonable grace period will be applied if you can prove that you were injured or hospitalised and were unable to go to the police station within 24 hours.

How to ensure a smooth insurance claims process

Whether or not you were at fault, and regardless of the extent of the damage, you or your broker must report the accident to your insurer as soon as possible. Most insurers will give you up to 30 days to submit a claim.

You will need:

Your plan details.
Police case number.
Details of the accident and all parties involved.
Supporting pictures or witness statements, if available.

Repairs must not be carried out on the vehicle until your insurer has inspected it and assessed the extent of the damage.

It is important to be aware that certain conditions and exclusions apply to your plan. For example, your claim may not be covered if the driver was under the influence of alcohol or drugs at the time of the incident, or if the vehicle was in an unroadworthy condition.

Third-party claims

If another driver caused the accident, you can claim for repair costs from their insurer. Typically, your insurer will repair your vehicle and then recover the costs, including your excess where applicable, from the third party’s insurance.

To make a third-party claim, you will need a police case number. Your insurer may also provide a No Claims Letter to confirm that you are not claiming under your own plan.

If the other party is uninsured, claims of up to R20 000 can be made through the Small Claims Court. Larger claims will require the Magistrate’s Court or the High Court.

If you’re found to be at fault for the accident, your insurer will take care of the process for you. It will assess the damage to the third party’s vehicle, share the report with them, and suggest a repairer. Once the third party is happy to proceed, your insurer will handle the payment, and the third party can take their car to the repairer to get the work started.

Claiming for pothole-related damage

If you hit a pothole, you do not need to report the incident to the police.

When notifying your insurer, you will need to provide the date, time, and location of the incident. Depending on your cover, your insurer may cover damage to tyres, rims, and suspension components. Some plans exclude damage to tyres alone, so it is essential to understand your plan’s terms and conditions.

Original Article - Moonstone

New criminal tactic targeting South Africans with banking apps on their phones

Tue, 07 Apr 2026 11:56:17 GMT

Criminals are increasingly kidnapping South Africans and forcing them to hand over money through the banking apps on their phones.

Security experts called these “express kidnappings”, which are incidents where victims are abducted during robberies or hijackings and then pressured or forced to unlock their phones, banking apps and accounts.

The Institute for Security Studies (ISS) said this form of kidnapping has become increasingly common in South Africa.

In many cases, the crime is opportunistic. Criminals spot a victim, seize the opportunity, and quickly move to drain available funds.

However, some victims are selected more deliberately based on the perception that they may have access to significant amounts of money.

“Depending on the group’s sophistication, this can range from a couple of thousand rand to millions,” the ISS noted. This tactic is part of a broader and deeply worrying rise in kidnapping-related crimes in South Africa.

Some experts have noted that many of these incidents occur during everyday activities such as commuting, shopping, or arriving home.

According to the latest South African Police Service (SAPS) crime statistics, nearly 4,800 kidnapping cases were reported nationally between October and December last year.

This works out to roughly 53 kidnappings a day, with Gauteng accounting for more than half of those incidents.

CrisisOnCall communication manager Ruan Vermaak said the figures reflect a serious and growing threat, with many different types of people being targeted.

He warned that criminals often focus on people who appear to have well-paying jobs, drive desirable vehicles, or follow predictable daily patterns.

While some kidnappings are carefully orchestrated for financial gain, others begin as robberies or hijackings and escalate once criminals realise they may be able to access a victim’s money.

Vermaak said many of these incidents happen in ordinary, everyday spaces where victims are vulnerable and distracted.

“They will kidnap them while they are actually stopped at the boom gate or at the security complex or even in the shopping mall parking area,” he said.

“This happens especially while they are packing the vehicle with groceries in the back. There were a few cases like this reported at various shopping centres across Gauteng.”

In some instances, once criminals have emptied the victim’s accounts, they simply abandon the person and steal the vehicle.

Part of a broader trend of rising digital banking fraud

This new tactic is part of the rise in smartphone theft and digital banking fraud. Banks and fraud experts have repeatedly warned that shopping malls are becoming prime hunting grounds for criminals.

This is because of the number of people and vehicles at malls or centres, and because victims often carry phones that provide direct access to sensitive personal and financial information.

The Southern African Fraud Prevention Service (SAFPS) has also warned of an increase in criminals targeting smartphones to access banking apps and steal money from accounts.

The concern is echoed by the National Financial Ombud Scheme (NFO), which has reported a sharp jump in digital banking fraud complaints.

Cases surged by 73%, rising from 1,436 between January and May to 2,483 during the same period in 2025.

The NFO has also flagged growing risks involving virtual banking cards, after one victim reportedly lost R500,000.

Nerosha Maseti, Lead Ombud for Banking and Credit at the NFO, said virtual cards remain useful, but are not fraud-proof.

“Fraudsters can create virtual cards and then use the virtual card credentials to perform transactions once gaining access to a customer’s digital banking profile after customers have shared OTPs or approved authentication prompts,” she said.

Original Article - BusinessTech

Rejected Claims Expose Behavioural Risk in Motor Insurance

Tue, 07 Apr 2026 06:57:58 GMT

Motor insurance claim rejections are being driven less by technicalities and more by driver behaviour – with direct implications for underwriting, advice, and client outcomes.

Data from the Insurance Data System (IDS) and findings from the National Financial Ombud Scheme (NFO) show that driver conduct, vehicle condition, and compliance with legal requirements directly influence both accident outcomes and claim decisions.

As traffic volumes rise over the Easter period, these patterns point to a persistent risk factor in motor books: behaviour.

Motor claims dominate disputes

A significant proportion of disputes handled by the NFO relate to motor vehicle claims, reflecting the prominence of road-related incidents in overall insurance complaints.

Motor claims continue to represent a large share of cases referred for determination, with many disputes arising from rejections linked to policy exclusions or a failure to exercise reasonable care.

Rejected claims account for approximately 10% of total annual non-life claims, a proportion that has declined since 2020 but remains material.

The IDS – a database of claims submitted by participating members of the South African Insurance Association (SAIA) – provides aggregated insight into these trends, although not all insurers contribute data.

IDS data shows that a notable portion of claim repudiations is associated with road safety risks and breaches of duty of care.

Despite the decline in overall rejection rates, the underlying pattern remains unchanged: most repudiations are driven by preventable driver behaviour and non-compliance with traffic regulations, rather than administrative or technical factors.

What is driving repudiations

Recurring patterns in IDS and NFO data point to a narrow set of behavioural triggers.

Driving under the influence remains one of the most common causes. Where legal limits are exceeded, claims are typically rejected due to both legal non-compliance and breach of policy conditions – leaving policyholders exposed to full financial liability.
Speeding and reckless driving follow closely. Where excessive speed or aggressive driving contributes to an accident, insurers may rely on “reasonable precautions” clauses to repudiate claims on the basis of gross negligence.
Vehicle condition is another recurring factor. Claims may be declined where accidents are linked to unroadworthy vehicles, including worn tyres or defective brakes.
Policy compliance issues also arise where vehicles are driven by unlicensed or undisclosed drivers – a risk that increases during holiday periods when vehicles are shared.
Misrepresentation and non-disclosure remain persistent, with rejected claims often linked to inaccurate reporting, pre-existing damage, or fraud.

Beyond accidents: the financial impact

Beyond accident statistics reported by the Road Traffic Management Corporation (RTMC), rejected claims represent a significant and often overlooked consequence of unsafe driving.

Where claims are rejected, the financial burden shifts to the policyholder – including both own damage and third-party liability, which can be substantial.

For advisers and insurers, the data points to a gap between policyholder expectations and policy conditions.

For advisers, the focus is on ensuring clients understand:

What constitutes reasonable care;
when cover may be voided; and
the consequences of non-disclosure.

For insurers, behavioural risk remains difficult to price and manage, placing pressure on underwriting, risk selection and client education.

Rejected claims also carry reputational risk, particularly where outcomes are contested.

Original Article - Moonstone

Disclosure Clauses: A Cornerstone of Risk Integrity in Insurance

Mon, 23 Mar 2026 06:31:39 GMT

Virtually every short-term insurance policy contains a Disclosure Notice or Disclosure Clause. This principle is equally applicable in the Life Insurance Industry, although the wording and application may differ from policy to policy or contract to contract.

Despite these variations, the intent and legal significance of disclosure remain consistent across the insurance industry.

The Purpose of a Disclosure Clause

The primary purpose of a Disclosure Clause is to impose a clear obligation on the proposer or insured to provide comprehensive, transparent, and accurate information relating to the risk or exposure being presented.

This obligation is fundamental to insurance. In an increasingly complex risk environment, disclosure serves as the insurer’s primary mechanism for understanding the true nature of the exposure before an underwriter can properly assess, price, or even consider acceptance of the risk.

In many respects, a disclosure operates as a formal declaration —almost akin to an affidavit—of all material facts the insurer reasonably needs to know in order to make an informed underwriting decision.

The Impact of a Deliberate Non-Disclosure

Where an applicant deliberately withholds or fails to disclose a material fact, the consequences can be severe.

Such non-disclosure frequently results in disputes and, in some cases, escalates into litigation. From an insurance perspective, it will often lead to a policy being voided from inception or cancelled outright.

In more serious cases, deliberate non-disclosure may amount to fraud. Fraud is viewed gravely in law and carries significant civil and criminal consequences. Any attempt to intentionally mislead an insurer undermines the contractual foundation of insurance and is treated accordingly.

The Insurance and Underwriting Perspective

Within insurance, disclosure is addressed in both the proposal form and in the policy terms and conditions. The information obtained enables the insurer and underwriter to determine whether to:

Accept or decline the risk
Apply specific terms, warranties, or endorsements
Adjust deductibles, limits, or premium levels

Once the underwriting assessment has been completed, a quotation is prepared and presented to the intermediary or broker. The intermediary, in turn, submits this to the applicant, enabling an informed decision based on terms and conditions that are commensurate with the risk.

Accurate disclosure at this stage is critical—it underpins the integrity of the entire insurance transaction.

Non-Disclosure Agreements and Confidentiality

Outside of insurance contracts Non-Disclosure Agreements (NDAs) are widely used across industries. These agreements bind parties to strict confidentiality and allow for the controlled sharing of sensitive or proprietary information within a defined circle.

Within the insurance environment, insurers and intermediaries are additionally governed by the Protection of Personal Information Act (POPIA). POPIA imposes statutory confidentiality obligations relating to personal and sensitive information.

As a result, all information provided by clients or insureds is treated as confidential and may not be disclosed or disseminated without consent, unless permitted in terms of the policy’s disclosure provisions or required by law.

Claims Involving Non-Disclosure

Non-disclosure often comes to light only after a claim has been submitted.

During the claims process, the insurer may appoint a loss adjuster to conduct a full investigation and assessment of the loss or damage. It is frequently at this stage of the claim that undisclosed or misrepresented material facts are identified.

The loss adjuster is obligated to report all relevant findings to the insurer. Upon review, the insurer must then address the implications of any non-disclosure, which may result in the rejection of the claim.

In such instances, the insurer is required to issue a clear, accurate, and well-reasoned repudiation letter to the intermediary or broker, outlining the basis for the decision.

Misrepresentation

While this article focuses primarily on non-disclosure, misrepresentation follows a similar legal and underwriting trajectory.

Any false statement, omission, or misleading information that induces another party to enter into a contract constitutes misrepresentation. Where intentional, it may amount to fraud and expose the offending party to serious legal consequences.

The Consort Perspective

At Consort, we believe it is essential that intermediaries and brokers fully understand the implications and consequences of non-disclosure. Equally important is ensuring that clients and prospective insureds appreciate their duty to disclose all material information accurately and transparently before signing any proposal or application for insurance.

Ultimately, effective disclosure protects all parties. It supports sound underwriting decisions, fair pricing, and—most importantly—claims certainty.

The last outcome any insurer, intermediary, or insured wants is a legitimate claim compromised by a disclosure issue that could have been avoided.

10 cars being targeted by hijackers in South Africa – with 3 new additions

Mon, 01 Dec 2025 09:42:10 GMT

A new list compiled using data from insurance and tracking companies has identified 10 cars targeted by hijackers in South Africa, which include relatively new targets such as the Kia Picanto, the Isuzu D-Max, and the Toyota Corolla Cross.

The latest South African Police Service (SAPS) crime statistics recorded 4,533 hijackings in the most recent three-month period.

Although this reflects a 15.1% year-on-year decline, the numbers are still worryingly high. The SAPS currently sees about 50 cases of hijackings every day.

Using data from police, security companies, and major insurance and tracking firms, MoneyToday published a list of the most stolen cars for 2025.

According to MoneyToday, the cars most commonly targeted are:

Toyota Hilux
Volkswagen Polo Vivo
Toyota Fortuner
Ford Ranger
Hyundai H100
Nissan NP200,
Kia Picanto
Toyota Corolla Cross
Isuzu D-Max
BMW 3 Series.

Many of these models have appeared on hijacking lists for years. The Toyota Hilux, Ford Ranger, and Nissan NP200 are popular workhorse vehicles with high resale value, making them consistently attractive to criminals.

The Volkswagen Polo Vivo is one of South Africa’s most widely driven cars, and its parts are always in high demand.

The Toyota Fortuner has also been a favourite among syndicates because it is easy to resell or strip for components.

What is new this year is the appearance of the Kia Picanto, Isuzu D-Max, and Toyota Corolla Cross.

Security company Blue Hawk Tactical warned in September that a criminal group had been specifically targeting Corolla Cross vehicles across Gauteng for several months.

Wahl Bartmann, CEO of Fidelity Services Group, previously told BusinessTech that criminals prefer cars that “blend in” and can move through traffic without drawing attention.

He said vehicles like the Corolla Cross, especially in common colours such as white or silver, are appealing because they are popular and easy to hide among everyday traffic.

Once stolen, the cars are either stripped for parts or illegally re-registered and sold.

The latest trends and how to avoid becoming a target

Since its launch in 2021, the Corolla Cross has become one of the top-selling vehicles in the country, frequently ranking among the top four best-selling cars in 2025.

The popularity of these vehicles is a major factor in why they are targeted. Naamsa’s sales data shows that most cars on the list rank among the best-selling models in South Africa.

High sales mean high demand for parts, and this creates opportunities for criminal networks involved in chop shops and illegal vehicle sales.

MoneyToday noted that vehicles on the most-stolen list typically face higher insurance premiums.

Drivers of these cars often pay 15% to 30% more for insurance and may be required to install tracking units or other security devices before their policy is approved.

However, while these ten cars are the most frequently targeted, no vehicle is completely safe.

The number of hijackings involving a specific model should always be considered alongside how many of those cars are on the road.

In other words, a car may appear frequently in hijacking statistics simply because there are many of them in circulation.

Bartmann told BusinessTech that overall hijacking numbers have remained relatively stable in recent months. There was a slight decline from August to September, followed by a small increase in October 2025.

Looking at past trends, he stressed that hijackings usually rise in November before dropping again in December, and he warned that this pattern might repeat this year.

He also reported a new tactic used by criminals. In some areas of the East Rand, such as Tsakane and Boksburg, and the Vaal region, including Vereeniging and Sebokeng, criminals are using hijacked vehicles during house robberies.

They load stolen goods like TVs and laptops into the victim’s car, drive to a second location, offload the items into an accomplice’s vehicle, and then abandon the hijacked car.

Bartmann urged motorists to remain alert and take simple precautions to reduce their risk.

He advised drivers to watch their surroundings closely, especially near intersections, traffic lights, and driveways, and to avoid stopping if they suspect they are being followed.

He recommended varying daily routes, keeping valuables out of sight, and leaving space to escape when arriving at home.

If confronted by hijackers, he said the safest response is to comply, as resisting increases the risk of harm.

Bartmann also suggested carrying a panic device such as Fidelity’s SecureMe or SecureMe Plus, which sends an instant alert to a 24-hour control room in an emergency.

Original Article - BusinessTech

Warning to South African homeowners with electric fences

Tue, 11 Nov 2025 13:02:36 GMT

Criminals in South Africa are continually adapting their methods to bypass home security systems, including electric fences.

Despite small declines in reported burglary and robbery cases, the number of break-ins recorded in South Africa is excessively high.

This makes regular security maintenance and awareness increasingly important for homeowners.

According to the latest South African Police Service (SAPS) crime statistics, more than 36,000 burglaries at residential premises and over 12,000 common robberies were recorded in the first quarter of 2025 alone.

This translates to approximately 400 burglaries per day. While the year-on-year decrease appears to provide a slight improvement on paper, South Africans’ sense of safety remains low, and many crimes go unreported.

Statistics South Africa noted that theft of personal property is the most common crime affecting individuals. However, approximately 70% of these incidents are not reported to the police.

Stats SA added that crime continues to impact daily life across the country, affecting people in both urban and rural areas, regardless of income level.

The Governance, Public Safety, and Justice Survey provides a more comprehensive picture when examining both reported and unreported crimes.

It showed that burglary has consistently been the most common crime affecting households. During 2024/25, an estimated 1.5 million housebreaking incidents occurred, affecting nearly 6% of households nationally.

Despite this, only 43% of these incidents were reported to the police. This means that more than half of break-ins never reach official crime statistics.

Electric fencing, once considered a strong deterrent, is now being challenged by increasingly sophisticated tampering techniques.

According to Gido Group manager Douglas Deerans, criminals have become adept at identifying weak points and manipulating fence systems to avoid detection.

He told MyBroadband that criminals are continually devising new methods to circumvent electric fences in South Africa.

Criminals target quick-to-grab items

He explained that one of the most common tactics involves using a V-shaped stick or plastic conduit to lift a group of wires away from the others, allowing someone to slip through without touching live conductors.

Another method is to place insulating sleeves over the wires, thereby preventing electrical contact.

Criminals may also cut multiple points of the fence simultaneously or install a makeshift bypass so that the electrical energiser does not detect a break in continuity.

Because many energisers are designed only to trigger alarms when they detect a single obvious disruption, coordinated cuts can slip past the system unnoticed.

In other cases, criminals simply break fence insulators or strike support brackets so that wires sag, creating a gap to move through.

Deerans noted that criminals often test fences before attempting entry. “If there is no click or response, they’ll push on,” he said.

Gate areas are another frequent weak spot, especially if the gate contact points are worn or incorrectly installed, which can break the electrical circuit and leave the fence effectively inactive.

To reduce these risks, Deerans advises homeowners to prioritise proper electric fence installation and insist on series wiring, which ensures that any break triggers an alarm.

Parallel wiring, he warns, can allow criminals to disable one section without being noticed. He also recommends installing robust gate contacts that maintain both live and earth continuity, and ensuring these are weather-rated and properly aligned.

Anti-lift brackets, anti-creep loops at wall corners, and frequent inspections of insulators and earthing points also help prevent tampering. “Good earthing and energiser placement are vital for both safety and reliability,” he said.

Importantly, an electric fence should not be relied on in isolation. Deerans emphasised that fences must form part of a layered security system, supported by alarms, cameras, lighting, and rapid response capability.

“Regular maintenance and proper monitoring remain the most effective deterrents against fence tampering,” he said.

Fidelity ADT’s Charnel Hattingh warned that criminals are increasingly focused on quick-to-grab items like laptops, tablets, phones, and other electronics, and often rely on speed and opportunity.

“Criminals are becoming more brazen and using different tactics to lure residents out of their homes,” she said.

She urged homeowners to remain alert, arm their alarms whenever leaving home, and ensure their perimeter security is working.

“If your perimeter is not secure, criminals are taking advantage. The suspects are quick, getting in and out within minutes.”

Roadworthiness is essential for valid insurance claims, Ombud warns

Tue, 30 Sep 2025 08:36:05 GMT

The law requires all vehicles on public roads to be roadworthy, and insurers are within their rights to reject a claim when a vehicle’s lack of roadworthiness causes an incident.

Whenever a vehicle hits the road, it enters an unspoken contract with the driver and the insurer. That contract hinges on one critical condition: the vehicle must be safe, legal, and roadworthy. When it is not, the risks multiply for the driver and everyone else on the road.

South Africa records thousands of road fatalities annually, with many linked to vehicle defects that could have been addressed. Making roadworthiness a condition for insurance is not only about reducing insurers’ exposure to unwanted risks; it is also about protecting lives.

The Non-life Insurance Division of the National Financial Ombud Scheme (NFO) says insurers may deny claims or limit payouts if they determine that poor vehicle maintenance contributed to an incident. This means vehicle owners bear significant responsibility for maintaining their vehicles in a roadworthy condition.

Tyres and brake systems that do not meet the minimum requirements of roadworthiness may result in an insurer repudiating a claim. Maintaining the vehicle’s brakes and ensuring that the tyres comply with the National Road Traffic Act are among the minimum roadworthiness requirements.

“Generally, insurance companies provide cover on the condition that the insured party takes reasonable steps to prevent harm,” says Edite Teixeira-Mckinon, Lead Ombud of the Non-life Insurance Division.

“In fact, most policies explicitly state that claims may be denied if the insured fails to comply with the Act and the vehicle is not roadworthy at the time of the incident. That denial isn’t punitive; it’s principled and ensures that premiums remain fair for those who uphold their end of the bargain.”

By proactively maintaining your vehicle in a roadworthy condition, you can reduce the likelihood of an accident and frequent breakdowns. Faulty brakes and unroadworthy tyres are the most common reasons relied on by insurers to reject accident claims on the ground that the vehicle was not roadworthy, said Teixeira-Mckinon.

Insurers often rely on expert evidence to demonstrate that a vehicle did not comply with the Act.

Case study: unroadworthy tyre

Teixeira-Mckinon cited a case-study where the complainant claimed for accident damage when he lost control of his vehicle and collided with a pavement while driving through a puddle of water.

The insurer’s expert found that the left rear tyre was unroadworthy because the two inner tread wear indicators on the tyre were level with the remaining tread pattern of the tyre. The Act declares that no person shall operate a motor vehicle with a tyre where the tread is level with the tyre tread depth indicator.

The expert concluded that the worn left rear tyre could not disperse the amount of water that the front tyres were channelling towards the rear tyres. This resulted in the left rear tyre aquaplaning on the wet road surface. The right rear tyre then also aquaplaned, which led to the complainant losing control of the vehicle.

On considering all the evidence and submissions made by the insurer and insured, the NFO decided that the insured’s complaint could not be upheld. The insurer had demonstrated, on a balance of probabilities, that the unroadworthy tyre was the proximate cause of the accident.

It is not enough for the insurer to demonstrate that the vehicle is unroadworthy. The NFO does not only make decisions based on the strict letter of the law. In terms of its equity jurisdiction, the NFO will consider whether the unroadworthy condition of the vehicle was material to how the loss took place.

Case study: worn brake shoes

In a second case study, Teixeira-Mckinon said the insurer rejected a claim for accident damage on the basis that the brake shoes on the vehicle and the right rear brake disc were worn. In the claim form submitted by the complainant, he stated that he swerved to avoid a pothole when the vehicle fell to its side.

The NFO overturned the insurer’s rejection of the claim because the insurer had not demonstrated that the condition of the brakes was material to the way the accident happened. No mention was made of the brakes being applied at the time of the loss. Therefore, the insurer had not established a causal connection between the unroadworthy brakes and the accident.

The NFO issued a provisional ruling for the insurer to settle the claim, which the insurer agreed to abide by.

“To avoid the financial burden of a claim being rejected due to a vehicle being unroadworthy, insureds are advised to carry out regular checks to key areas of their vehicles,” said Teixeira-Mckinon

“Follow the maintenance intervals recommended by your vehicle’s manufacturer. By not maintaining your vehicle’s roadworthiness, you run the risk of not only compromising your insurance cover in the event of a claim and possibly having to pay for your own vehicle’s repairs but also having to pay for any damage you cause to another motor vehicle and property.

“Ensuring that your motor vehicle is roadworthy is not only a legal requirement but a contractual obligation if your vehicle is insured.”

Original Article - Moonstone

Mind your password: six cyber vulnerabilities that could cripple SMEs

Thu, 18 Sep 2025 10:46:42 GMT

In our increasingly digitised world, the importance of securing online identities cannot be overstated.

For small and medium-sized enterprises (SMEs) in South Africa, the stakes are even higher.

Unlike larger corporations which may have ample resources to protect themselves, many SMEs find themselves increasingly vulnerable to cyber threats.

A recent study, Alert Online 2024, highlighted a troubling trend, revealing that some 30% of smaller SMEs, particularly those with fewer than 10 employees, have opted for no cybersecurity measures whatsoever.

This alarming statistic raises critical concerns about the survival of these businesses in the wake of a cyberattack.

As cybercriminals continue to evolve their tactics, SMEs must re-evaluate their digital security practices.

Below are six key vulnerabilities that every SME should address to safeguard against potential cyber threats:

1. From password to passwordless

The era of relying solely on passwords may be nearing its end. While many companies still adhere to traditional username and password protocols, these methods are increasingly susceptible to brute force attacks.

Embracing passwordless solutions, such as two-factor authentication - which combines an authenticator app and biometric recognition - can drastically improve security.

By doing away with passwords, businesses not only reduce the risk of phishing attacks but also enhance user-friendliness and ensure compliance with regulatory requirements.

2. Train your employees

Cybersecurity is not just an IT issue; it’s a company-wide concern.

The majority of security breaches are instigated by human error, often through employees falling prey to phishing scams or working on unsecured networks while remotely.

Regular training sessions can keep staff updated on best practices in cybersecurity, fostering a proactive mindset towards safety among employees.

3. Update and patch your network

Software vulnerabilities can open doors for cybercriminals to exploit business networks.

Whenever a vendor releases a patch to address a vulnerability, ensuring timely updates becomes paramount. Delays in applying these patches leave systems exposed and at risk of cyberattacks.

4. Use an automatic data backup

Ransomware attacks can devastate operations, but having an automatic backup in place can mitigate the fallout. If cybercriminals lock you out of your systems, an effective backup means you can restore your data swiftly, allowing business continuity and minimal disruption to operations.

5. Secure all devices

In a connected world, multiple devices are often in use, including personal gadgets, printers, and even Internet of Things (IoT) devices.

Each can represent a potential risk, serving as a weak point for intrusions.

Therefore, employing comprehensive endpoint security on all devices becomes non-negotiable.

6. Limit access rights

Utilising advanced access controls can further secure sensitive data.

With strategies such as Zero Trust policies, businesses can restrict access based on roles or specific projects.

This layered approach means that should a breach occur, the potential damage is limited.

With the landscape of cyber threats continually evolving, SMEs must take proactive measures to protect themselves. Ignorance is no longer an option.

By addressing these vulnerabilities head-on, small businesses can not only shield themselves from cyberattacks but also secure their futures in the digitised economy.

Original Article - MSN

Cyber Threats: Awareness High, But Cover Still Low

Mon, 18 Aug 2025 13:25:18 GMT

Concern about cyber threats is widespread, yet this has not translated into sufficient insurance uptake.

The latest Santam Insurance Barometer shows that 81% of consumers are concerned about cyber risks, while 80% of businesses say they have strengthened their defences. But only 2% of consumers and 17% of businesses have purchased cyber insurance.

Manisha Chiman, the executive head of Santam Specialist Solutions, says the gap between awareness and cover is troubling, particularly because cyber risks are growing more sophisticated and financially damaging. Brokers, she argues, have a central role in bridging this gap by explaining exposures and the benefits of cover in straightforward terms.

“The more clarity we can bring to this space, the more confident businesses and individuals will feel about adopting insurance as part of their cyber resilience strategy,” Chiman says.

Growing threat landscape

South Africa’s cyber vulnerabilities are becoming increasingly clear as attacks on airlines, mining companies, and government departments escalate. “Cybercrime is no longer a hypothetical risk,” Chiman warns, noting that even the country’s most established institutions are being hit.

The African Defence Forum recently flagged rising attacks on government agencies. In January, the South African Weather Service was taken offline by a cyber breach that disabled its email, website, and aviation and marine forecasting systems. The disruption spread beyond South Africa, affecting Mozambique, Zambia, and other countries that rely on its forecasts.

Critical infrastructure has also been targeted. The National Health Laboratory Service was forced to halt blood testing, the Companies and Intellectual Property Commission was breached, and the Government Employees Pension Fund – Africa’s largest retirement fund – was hacked. On average, South African organisations and state agencies faced 1 450 cyberattacks a week in 2024.

Private companies are not immune. In May, The Record reported that a cyberattack on South African Airways disrupted its website, mobile app, and several internal systems. And in June, MyBroadband confirmed that mining company Eastern Platinum disclosed a breach that exposed internal files on the internet.

These attacks are part of a wider pattern: cyber incidents across Africa surged by 37% in 2024, according to Check Point Software Technologies, underscoring the continent’s growing vulnerability.

Why insurance matters

Despite this intensifying threat, cyber insurance remains underutilised. Chiman says hesitation often stems from the way risk is framed. “

Often, it is seen as a purely technical problem requiring purely technical solutions. Although security measures such as firewalls and encryption are essential, they cannot eliminate the risk of a cyberattack altogether.”

Breaches continue to occur through phishing emails, insider threats, or human error, and when they do, the consequences can be severe.

“Cyber insurance provides cover against cybercrime, cyber incidents, cyber extortion, or data breach risk. A well-structured policy is about more than just claims pay-outs. It can provide access to expert support in the hours and days after an attack, including forensic investigators, legal advisers, and breach recovery specialists.”

The Santam Insurance Barometer also highlights widespread misconceptions.

“Many SMEs, for example, believe they are unlikely targets. Others assume cyber cover is too expensive or complicated for their specific needs. Both assumptions are misguided, and while cost can be a barrier, the financial consequences of a serious cyber event – from ransomware to data theft – can far exceed the price of protection.”

Signs of progress

There are indications of a shift. Between 2022 and 2024, Santam recorded a marked increase in demand for cyber cover, although from a low base. The latest Sophos Cyber Insurance and Cyber Defences Report found that 52% of South African companies now have a dedicated cyber policy.

Still, a large portion of the market remains exposed.

“Risk mitigation through proactive attitudes towards cyber awareness is essential. In a country ranked among the most targeted in the world for cyberattacks, risk transfer through insurance must form part of business strategy,” Chiman says.

Original Article - Moonstone

Ombudsman sounds alarm on virtual banking card

Thu, 07 Aug 2025 09:12:11 GMT

WITH virtual banking cards being offered across all digital banking platforms, and with the ability to load these cards on phones and other wearable devices, virtual cards are gaining ground over traditional physical cards or cash.

Unfortunately, this digital alternative is also increasingly being used by fraudsters when targeting unsuspecting bank customers.

The National Financial Ombud Scheme (NFO) has seen a significant increase in digital banking fraud complaints, rising from 1 436 cases between January and May 2024 to 2 483 cases during the same period this year - a whopping 73% year-on-year increase.

In contrast, ATM card complaints rose from 237 to 332, but remained lower in number than virtual or digital fraud cases. Between January 2024 and May 2025, digital fraud complaints exceeded ATM fraud complaints by 3 350 cases, marking a dramatic shift in card fraud from plastic to virtual.

The convenience of accessing a virtual card directly through a secure banking app on the phone is undeniable. Whether shopping online or tapping a device in-store, consumers now enjoy payment capabilities at their fingertips. The growing adoption of these methods is clearly reflected in the rising volume of transactions made via virtual cards.

Virtual cards are designed for secure online transactions and come with a unique card number, expiration date, and CVV, just like a physical card, but they offer extra security because they can't be lost, stolen, or duplicated.

Compromised virtual card = fraud

Nerosha Maseti, the Lead Ombud for Banking and Credit at the NFO, said while virtual cards offer enhanced convenience and security, they are not immune to fraud, and opportunities for fraudsters to exploit unsuspecting bank customers remain.

Maseti said the NFO’s investigations reveal that virtual cards are typically compromised through unauthorised access to a customer’s banking app. The methods of compromise such as vishing, smishing, and phishing - all sneaky tactics used by cybercriminals to steal personal and confidential information - are consistent with those used to compromise physical cards. In the majority of reported cases, the compromise and use of virtual card numbers to perform transactions occurred only after a customer’s digital banking credentials were compromised.

“Fraudsters are able to create virtual cards and then use the virtual card credentials to perform transactions once gaining access to a customers digital banking profile. This happens when bank customers have compromised their confidential access credentials, shared One Time Pins (OTPs) or accepted authentication messages for the creation of virtual cards.

“Despite ongoing awareness campaigns by banks, including media outreach and direct communication via SMS, email, and in-app notifications to educate customers on the functionality and associated risks of virtual cards, the majority of complainants to our office indicated that they were unaware of the existence or use of virtual cards,” she said.

R500 000 siphoned

Maseti cited the case when a consumer was contacted by fraudsters pretending to be calling from the bank (vishing scam). The fraudsters managed to convince the consumer that she needed to provide them with her confidential access information for her online banking profile. Upon gaining access to the customer’s online banking profile, the fraudsters created a number of virtual cards and concluded online card purchases totalling R500 000. The online card purchases were authenticated through in-App approvals via the consumer’s banking application.

The consumer reported the incident to the bank and claimed a full refund. The bank repudiated her claim. The customer lodged a complaint with the NFO.

When responding to the NFO, the bank again repudiated the consumer’s claim on the basis that the consumer’s online banking login credentials were compromised, and more specifically, that the disputed transactions were approved via the consumer’s mobile banking application which was accessed through the entering of the correct mobile banking application credentials.

“The bank provided proof of the creation of the virtual cards on the online banking profile as well as proof of the authentication messages delivered to the mobile application linked to the consumer’s online banking profile in terms whereof the fraudulent online card purchases were authorised. The consumer confirmed that her phone was in her possession at all times.

“The facts showed that the consumer had compromised her online banking credentials and approved the In-App messages required to authorize the online card purchases in question. The bank could not be held liable for the loss suffered by the consumer as a result of the compromise,” Maseti said.

She added the bank confirmed that the fraudulent online card purchases could not be concluded without the fraudsters gaining access to the complainant’s online banking profile and the consumer authenticating the In-App messages. No proof was provided that the transactions took place as a result of maladministration or safety and security failures on the part of the bank. There was accordingly no basis for the NFO to recommend that the bank reimburse the loss suffered by the complainant.

Maseti said consumers are responsible to keep their confidential access credentials safe and secure. Consumers must never disclose confidential banking information to anyone – the bank will never request disclosure of same. Consumers must carefully read each and every notification which they receive from their bank. Immediately report any suspicious activity to the bank.

Some ways to keep your virtual card safe:

Never share your confidential card parameters or PIN, login credentials, passwords or One Time PIN with other people. The bank will not phone you to ask for this confidential information. When you are authenticating a transaction, read what you are approving carefully as fraudsters may try to convince you to approve transactions for their own financial gains.
Enable Multi-Factor Authentication (MFA) – Ensure your banking app requires extra verification, like a one-time PIN or biometric authentication.
Use a Secure Internet Connection – Avoid making transactions on public Wi-Fi , where hackers can intercept your data.
Create Unique, Strong Passwords – Use a password manager to store complex passwords instead of reusing the same ones.
Set Spending Limits – Some banks allow you to set transaction limits for virtual cards, reducing risk if your card is ever misused.
Turn Off Auto-Save – Avoid saving card details in browsers or apps unless absolutely necessary.
Don't panic: Fraudsters rely on people acting hastily, due to a sense of panic. Their tactics include threats that your accounts will be blocked or that fraud has been identified and must be stopped immediately. Whatever the scenario, it should never compel you to give away sensitive personal information such as OTPs, PINs, or passwords. It is safer to end such communication and contact your bank immediately .
Do not click on email or SMS links: Proceed with caution when opening emails from unknown or suspicious sources. Credible financial institutions will never ask you to click on links. Avoid doing so or downloading attachments from these kinds of messages as they may include harmful malware or redirect you to fake and malicious websites.
Pay careful attention to the wording of OTP requests: Familiarise yourself with the way your financial institution communicates notifications about online transactions and OTP requests. If you have any doubt, contact your banking institution immediately to confirm the veracity of such messages.

If you have a dispute with your bank that remains unresolved, you may escalate the matter to the NFO.

Maseti said it is essential to report any suspected fraud to your bank as soon as possible. The NFO cannot assist with blocking or recovering funds - only your bank can take immediate action to protect your account. Only refer a complaint to the NFO once your bank has responded and you are dissatisfied with their outcome or resolution.

Original Article - MSN

A warning to South African homeowners with electric fences

Mon, 14 Jul 2025 09:43:20 GMT

South African homeowners are being warned to ensure their electric fences are up to standard amid stricter law enforcement in the country.

Electric fencing remains one of the most popular security measures in South Africa, widely used by homeowners and businesses alike.

However, homeowners are cautioned that failing to comply with electric fencing laws could have serious legal and financial consequences.

This is according to personal injury law firm DSC Attorneys , which said electric fencing is inherently dangerous and must be installed and maintained correctly to ensure safety.

Electric fencing is made up of multiple strands of wire powered by an energiser or transformer.

When properly installed and maintained, the energiser creates intermittent electronic pulses of up to 10,000 volts.

Because the electricity flowing through the wires is turned on and off every second, the system is not lethal when touched. However, the risks increase significantly when things go wrong.

“When the transformer that converts low-voltage power to high-voltage power is faulty, or an animal or person gets entangled in loose wiring, there’s a risk of serious injury, and even death,” said DSC Attorneys.

Vulnerable groups, including children and people with heart conditions or pacemakers, are especially at risk when exposed to continuous high-voltage shocks.

A key issue, the law firm stressed, is compliance. Homeowners are legally required to have a valid Certificate of Compliance (CoC) issued by a qualified electric fencing installer registered with the Department of Labour.

Without this certificate, property owners can be held civilly and even criminally liable if someone is injured by their fence.

“A property owner whose electric fencing doesn’t comply with the regulations may face a hefty fine or jail time, especially if the fencing seriously injures someone,” DSC Attorneys warned.

Electric fencing regulations in South Africa are governed by the Electrical Machinery Regulations of 2011, but new updates introduced by the South African Bureau of Standards (SABS) in June 2023 have significantly tightened the requirements.

These updates apply to all electric fencing, whether used for residential, agricultural, game, or security purposes.

Valid Certificate of Compliance is crucial

One of the most important changes involves stricter grounding standards. Wires must run through protective conduits to earth spikes and remain exposed for visual inspection. Burying wires underground is no longer acceptable.

“The standard also mandates the use of stronger materials, such as high-grade wires and insulators, to improve durability and overall safety,” said DSC Attorneys.

The new rules include mandatory inspection requirements in addition to installation standards.

Homeowners must perform visual checks of their fences monthly and conduct more thorough technical inspections every three months.

These inspections must follow a standardised testing procedure and result in official certification to ensure the system functions safely and legally.

“Although rules for electric fences were first introduced in 2011 under the Occupational Health and Safety Act, enforcement has been minimal until now,” said the firm.

That is changing, with the Department of Labour now actively pushing for compliance.

Installers of Electric Fence Systems must be registered, and every property with such a system must have a valid CoC. Non-compliance is a criminal offence.

Insurance implications are another major concern. Homeowners who do not comply with the regulations risk having claims rejected if their electric fence causes injury or damage. They could also be sued or prosecuted.

Additionally, electric fences in urban areas must now display yellow warning signs at all gates and access points, on corners, and every 10 metres along the fence.

These signs are legally required to alert the public and reduce the risk of accidental contact.

The Department of Labour has urged homeowners to take these requirements seriously. Using only registered installers, scheduling regular inspections, and ensuring a valid Certificate of Compliance is in place is the law.

“Any homeowner who does not have a valid Certificate of Compliance can be held civilly and criminally liable for injuries caused by the fencing.”

Do your clients know about looming 2/3G disconnect

Fri, 11 Jul 2025 07:51:45 GMT

The accelerated adoption of new technologies introduces new risks to businesses and households, but not always where you expect it to. So, while brokers and risk managers are on edge over cybercriminals using artificial intelligence (AI) to hack into bank accounts or steal clients’ data, there are some more basic developments that you need to keep an eye on.

Rethinking broadband

The 2024-2025 Santam Insurance Barometer flags the ongoing evolution of South Africa’s broadband spectrum as having a potential impact on its policyholders. Why? Let’s not jump the gun. We first need some background. Back in June 2024, the Department of Communications and Digital Technologies (DOC) proposed a phased retirement of the country’s 2G/3G networks, with no new 2G/3G-only devices allowed after 2024, and a complete shutdown by 31 December 2027.

The main motivation for the shift is to free up the spectrum occupied by 2G/3G so that it can be used for faster 4G/5G technologies that deliver better connectivity and spectrum efficiency. Experts say that newer networks can serve more users with higher data speeds and improved voice quality, and government is driving the narrative that delays in switching over will leave valuable spectrum trapped in obsolete networks instead of supporting affordable broadband access.

The 2G/3G sunset is being driven jointly by government policy and commercial pressure from mobile operators. The former has laid out the roadmap, but it is Vodacom, MTN, Telkom and others that are actively repurposing network capacity to support the shift. More broadly, the transition is being coordinated between the DOC and the regulator ICASA, which has already halted approvals for new 2G/3G-only devices and is conducting impact assessments to ensure no communities are left behind.

Hold on, we still use that tech

The issue is that some businesses still rely on devices that are connected via 2G/3G networks. Local non-life insurers could be impacted due to the legacy usage of 2G/3G technologies in radio-linked alarms and older telematics devices, which are in turn requirements built into the terms and conditions of many commercial and personal lines insurance policy wordings. Your household or business contents may, for example, be on cover subject to you having a radio-linked alarm, and your motor theft or hijacking cover may be conditional on having a vehicle tracking device installed.

Be aware, the change is imminent. “Large telecoms firms are already eyeing the cost savings that would accrue from migrating their networks to 4G or higher, but this presents challenges for insurers and clients as certain home alarm systems and vehicle telematics devices depend on this legacy infrastructure to function,” Santam wrote in its Barometer. The insurer warned of an unforeseen risk to motor and property assets, adding that “security firms, tracking device providers and insureds would have to work closely to ensure the phased switch-off of these networks, scheduled for the end of 2027, does not cause widespread disruption.”

Thabo Twalo, Chief Underwriting Officer at Santam Broker Solutions, warns that the changes could have serious implications for policyholders. “Tracking and alarm systems are a vital deterrent in a country where theft, hijackings and housebreakings are a major challenge; a faulty or outdated device is not just an inconvenience but a genuine vulnerability,” he said, via a post-Barometer media release.

Test to ensure you stay on cover

Old tech or not, one of the perennial sticking points between insurers and their policyholders is that radio-linked alarms and vehicle trackers are not regularly tested. “It is good practice to call your alarm or tracking device company regularly, to test if the device is still in good working condition,” Twalo said. His message to brokers and insureds is unequivocal: you should be diligent about ensuring that the risk mitigations specified in your or your client’s policy wordings are in place and functioning.

Faulty or non-operational systems can create challenges for both insurers and policyholders. “Our policies do require that alarm systems and tracking devices are in working order,” explained Twalo. The insurer has been working with security service providers to highlight the emerging 2G/3G issue and encourage proactive device upgrades. However, the responsibility ultimately lies with the consumer or policyholder. You will have to confirm which network your alarm system or tracking device uses, and take steps to upgrade if it is still 2G/3G dependent.

Having spent a few decades in South Africa, you might retort (like your writer did) that there is no way the shut-off happens by the end of 2027. Government has a multi-decade track record of missing its own deadlines. Case in point, the migration from analogue to digital terrestrial television (first announced in 2006 and set for completion by 2011) remains incomplete more than 15 years later. Despite several revised deadlines and ministerial assurances, many households continue to rely on analogue TV signals today.

Postponement possible, if not likely

If the past is any guide, the 2G/3G shutdown may be postponed repeatedly too. There are, however, some subtle differences at play, most notably that the private sector telecoms firms have a financial incentive to shut down the old infrastructure. The faster and more efficient 4G networks will lower operating costs for the major telecoms firms and ultimately drive the push to switch off the legacy networks. Another obvious motivation is that maintaining decades-old infrastructure is increasingly uneconomical.

The 2022 high-demand spectrum auction, delayed for over a decade, finally gave mobile operators the capacity to accelerate their 4G/5G rollout plans. In that context, 2G/3G decommissioning is a natural next step, and a precondition for efficient use of newly allocated spectrum. As an aside, and since we are on the topic, your writer could not resist a dig at government for blocking Elon Musk’s Starlink. He cannot think of a better solution to address the access and affordability constraints mentioned in today’s scribblings, let alone extending broadband comms to inaccessible and rural areas.

For insureds, the solutions are so simple that anyone delaying until 2027 needs a reality check. According to Santam, those with radio-linked alarms or installed tracking devices need only reach out to their service provider to confirm which network it utilises, and whether it requires an upgrade. And if you are installing a new system, insist on a future-proofed solution that supports alternative network connections. The up-to-date network technologies should anyway be in place by default by now.

Just upgrade already…

With network providers accelerating the decommissioning of older technology, the timeline is shorter than many think. “This is not a problem to put off for 2028; the move is already in progress, and policyholders must be proactive to stay protected,” Twalo concluded.

Original Article - FA News

Business email compromise: How to plug workflow leaks to ensure you don't become a victim

Fri, 11 Jul 2025 07:42:58 GMT

Over one-third (38%) of South African executives rank business email compromise (BEC) among their top three cyber threats - exceeding ransomware concerns - PwC’s 2024 Digital Trust Insights survey shows. It's no suprise then with over seven million phishing attempts logged in South Africa during 2023 alone, BEC is one of the country's fastest-growing cyber-fraud risks.

Bobby Stewart, product owner at e4

Often, a major vulnerability is the way high-value transactions still rely on unprotected email threads, loose identity checks and manual document hand-offs. “BEC thrives on workflow weakness. Until organisations think about communication and signing journeys with fraud in mind, criminals will keep finding a way in,” explains Bobby Stewart, product owner at e4.

Property and legal transactions are prime targets for BEC attacks because they move large sums, involve multiple parties and depend on trust. Just one example is a case where a homeowner believed he was applying for additional financing but unwittingly signed bond-cancellation papers instead. “That sort of attack has nothing to do with firewalls and strong passwords. It happens when identity isn’t verified and signed documents are sent back and forth via email,” notes Stewart.

Traditional controls like antivirus, email security protocols and staff awareness training are still important and necessary, but they often sit outside the flow of work. Interpol’s 2024 African Cyber-Threat Assessment report warns that BEC combines social-engineering finesse with just enough tech to slip through front-line filters. By the time a homeowner notices fraudulent bank details or a conveyancer double-checks a PDF attachment, the funds may have already moved. “Standard email was never designed for multi-million-rand authorisations,” adds Stewart.

Building the right controls into everyday tasks

A modern, fraud-resistant workflow starts long before a payment instruction is sent. Best practice should be to bring all parties involved in high-value transactions, such as banks, attorneys and buyers in property transactions, into a closed, authenticated space where they can register securely, share documents through end-to-end encryption, and track progress in real-time.

Each message, file and banking detail is stored in an immutable archive, while milestone alerts show exactly when a deed pack is uploaded, a signature applied or funds released. “When those safeguards are baked into the way people communicate, most of the BEC entry points are taken care of,” says Stewart.

Replacing email chains with controlled links helps block impersonation attempts. It also automates tedious manual checks. “There’s no need for anyone to stitch up email threads and every party on the transaction enjoys greater transparency and peace of mind. A secure communication hub means organisations and their customers can move sensitive information and documents off insecure channels and into a controlled environment,” says Stewart.

Since BEC losses show no signs of slowing, Stewart says organisations should rethink how to secure their communication and workflows. “Start by mapping every step of a high-value transaction, from identity capture, document generation, signing, hand-off, and ask which of those steps still relies on inbox trust. Then redesign the flow so authenticated platforms move the data. That is how you turn a soft target into a hard one.”

Criminals are targeting these homes in South Africa

Mon, 07 Jul 2025 13:47:46 GMT

Homeowners are being warned that repeat break-ins are on the rise in South Africa, with criminals returning for replaced valuables or things they could not steal the first time.

This is the message from Youlon Naidoo, the executive head for Claims and Procurement from Miway Insurance.

He noted that burglars are increasingly returning to homes they have already broken into , knowing that valuables such as electronics have likely been replaced and that they already understand the property’s weaknesses.

According to the South African Police Service (SAPS), more than 36,000 burglaries at residential premises and over 12,000 common robberies were reported in just the first quarter of 2025.

While these figures have declined marginally year over year, residents’ sense of safety remains low, with the stats indicating there are roughly 400 burglaries a day.

“This all contributes to an overwhelming sense that the victim’s home is no longer theirs,” said Naidoo. “If your home has been targeted, it’s time to take your power back.”

He outlined several reasons why burglars return:

They may have seen something they couldn’t carry during the first break-in;
They now know exactly how to bypass the home’s defences;
They assume that replaced goods will be of similar or even higher value; or
They may simply believe their initial intrusion went unchallenged, giving them confidence to return.

Charnel Hattingh, Group Head of Marketing and Communications at Fidelity ADT, added that criminals are increasingly focused on portable electronic devices such as laptops, phones, iPads, and tablets.

“Criminals are becoming more brazen and using different tactics to lure residents out of their homes,” she said.

“We urge residents to remain vigilant. When you leave your house to go for dinner or to watch sport, make sure that you arm your alarm.”

Hattingh also warns that most of these crimes are opportunistic and time-sensitive. “If your perimeter is not secure, criminals are taking advantage.”

“The suspects are quick, getting in and out within minutes. If they can’t get into your house or business, they take what they can from your property or from your parked cars.”

The first 10 days are critical

Durban, South Africa – 6 December 2020: A yellow warning placed on an electric fence to signify to others the danger of touching the fence as crime increases in the country

The emotional impact of a repeat burglary can be long-lasting. According to Naidoo, victims often report persistent anxiety, a feeling of being watched, and the unsettling sense that their personal space has been permanently invaded.

“Even after significant investments in improved security systems, people struggle to feel truly safe in their own homes again,” he said.

If your home has already been burgled, taking immediate steps is essential to preventing another incident.

Naidoo stressed that the first 10 days are crucial. Reinforcing all entry points by replacing broken doors, windows, and locks is the first step.

Even if insurance processes take time, temporary measures like padlocks or security gates can make a big difference.

Homeowners are also urged to change all external locks, even if there is no clear evidence a key was taken, and to install visible deterrents like alarm signage, CCTV cameras, and motion-sensor lights.

Making the home appear occupied by leaving lights on timers, playing music, or asking a neighbour to park in your driveway, can also deter opportunistic criminals.

“Fixing any visible damage quickly is important,” said Naidoo. “A broken window sends a message that the house is vulnerable. Fast repairs show you’re alert, reducing the chances of becoming a repeat target.”

Reporting the break-in to local neighbourhood watch groups or WhatsApp crime alert forums helps raise awareness and encourages communal vigilance.

“Neighbours watching out for each other can deter repeat attacks,” Naidoo said. Community engagement is another vital line of defence.

It’s also important to inform your insurer of any new security measures. Insurance policies may require that alarms, beams, or gates be used for claims to remain valid.

“Check that your behaviour matches your policy requirements,” advised Naidoo.

Original Article - Business Tech

Insurers take hard line on failure to maintain infrastructure aimed at preventing climate change damage

Thu, 03 Jul 2025 14:09:04 GMT

A R6.5bn lawsuit in the wake of the 2022 KZN floods reveals how insurers are no longer willing to act as underwriters of public incompetence, especially concerning damage related to climate change.

Cast your mind back to April 2022 and the floods in KwaZulu-Natal. Infrastructure, homes and businesses buckled under severe floodwaters that caused billions of rands in damage and hundreds of deaths.

Devastating flood damage at Toyota’s manufacturing and assembly plant in Durban halted vehicle production there for four months.

A worker fuels a Hilux vehicle at a petrol pump Toyota Motor Corp. automobile manufacturing plant in Durban, South Africa, on Tuesday, Aug. 16, 2022. Floods earlier in that year caused extensive damage to the Toyota plant, one of the country’s biggest car manufacturers. Photographer: Waldo Swiegers/Bloomberg via Getty Images

In the aftermath, Toyota South Africa Motors’ (TSAM’s) insurer, Tokio Marine & Nichido Fire Insurance, paid out — and then turned its attention to those it holds responsible.

The Japanese insurer is now attempting to recoup a collective R6.5-billion from the eThekwini Municipality, the KZN Department of Transport and Transnet. It is claiming negligence, specifically the failure to maintain flood prevention infrastructure.

“It is important to note that the litigation proceedings are not being facilitated and/or funded by TSAM,” said Tasneem Lorgat, the general manager of marketing communications at TSAM.

“Accordingly, TSAM will not benefit in any way from the subrogated recovery action against these entities.”

If successful, this case could change how insurers manage climate risk and who they hold accountable for damages related to climate change.

Insurers vs incompetence

As the climate warms and infrastructure decays, insurers like Tokio Marine seem no longer willing to act as underwriters of public incompetence. And who can blame them?

According to Atang Matebesi, the CEO of Santam Client Solutions, the insurer’s storm and flood claims in commercial lines have increased by 5% over the past year.

“Storm and flood damage is often exacerbated by inadequate infrastructure maintenance or poor town planning, resulting in higher-value claims regardless of no major catastrophe events occurred over the past year,” he said.

Santam’s latest Insurance Barometer shows that climate change has barged its way into the list of top 10 concerns for customers, with 78% of respondents worried about extreme weather.

A drone image of the extent of the damages caused by flooding in Prospecton,Durban on 13 April 2022. The devastation of the floods claimed the lives of over 400 people and caused extensive damage to infrastructure. (Photo: Shiraaz Mohamed)

Nearly a quarter of respondents said they were proactively cleaning gutters or upgrading infrastructure to mitigate risks, said Matebesi. He added, however, that Santam’s claims data tell another story: too little, too late.

Climate change is a balance sheet issue

Insurers aren’t alone in their shift from passive observer to active risk manager.

“Climate volatility has accelerated the case for investing in renewable energy and water infrastructure to enhance economic and environmental resilience,” said Thabang Selota, Environmental, Social and Governance (ESG) and impact analyst at Sanlam Investments.

The asset manager’s investments, including in Oya Energy and Alien Fuel Group, are designed to lower exposure to fossil fuel volatility and boost long-term sustainability.

Sanlam uses internal ESG scoring and aligns decisions with global standards like the Task Force on Climate-Related Financial Disclosure and the UN’s Principles for Responsible Investment, said Selota.

High-emission companies with no real decarbonisation plan are red-flagged.

“Climate-related risks have direct implications for investment values,” said Selota. “These risks have increasingly influenced how we assess infrastructure resilience and asset viability.”

Everyone’s problem, nobody’s job

In sectors like agriculture and logistics, the cost of inaction will hit a lot harder.

Selota points out that businesses with physical exposure to climate extremes — agriculture, logistics, infrastructure — are particularly vulnerable. Those without the capital to build adaptation buffers are the first to go under.

“[Climate change] impacts substantially on livestock and crop health and production, while damage to infrastructure from extreme weather events disrupts agricultural and food supply chains,” said Stellenbosch Business School research fellow Roscoe van Wyk.

There’s still a yawning gap between risk perception and preparedness. Santam’s data show that 64% of agribusinesses name climate change as a top concern.

Yet only 16% of corporates overall rank it in their top three risks.

Wear and tear on infrastructure and increased weather-related risks could influence the fine print of insurance policies, said Kirsten Wolmarans, a partner at Webber Wentzel.

“Insurers may soon require institutional policyholders to implement early warning systems as a condition for coverage,” she said, warning that infrastructure contracts should mandate such systems or risk facing litigation.

Original Article - Daily Maverick

The new insurance scam that can get you blacklisted in South Africa

Mon, 30 Jun 2025 10:10:19 GMT

South Africa’s insurance industry is waking up to the rise of artificial intelligence being used to perpetrate scams and fraud in the country, and is equipping itself to retaliate.

This includes using AI detection tools to determine whether images, documents and other submissions have been toyed with, and blacklisting or even pursing convictions against those doing the fraud.

According to Ayanda Mdhluli, a senior manager of cybersecurity at Old Mutual Insure, the group has seen a rapid rise in the use of AI to scam people or conduct insurance fraud in South Africa.

By using image generation available on AI tools, perpetrators can manipulate or completely fabricate a lot of documentation or visual evidence needed for claims.

In response, the cybersecurity manager said that insurers are meeting the attempts in kind.

“We are also embracing AI as a tool to protect our customers, improve efficiency, and enhance fraud detection,” he said.

In addition, insurers are adopting more stringent claims assessment processes and can no longer rely on simple evidence, such as photos.

Old Mutual Insure’s current claims process now scrutinises evidence from multiple sources, and first on the scene providers like tow truck drivers also submit evidence.

“Relying solely on images – especially as AI-generated visuals become more sophisticated – is no longer sufficient,” he said.

Insurers are also ramping up use of geotagging, biometrics, and geometrics, where possible. Old Mutual is working closely with the Insurance Crime Bureau to identify red flags.

The company is also using AI detection tools to verify whether documents or images submitted are artificially generated.

“We take this very seriously. When we identify a fraudulent claim, we report it to the Insurance Crime Bureau, which alerts the wider industry,” he said.

“There are consequences for this type of behaviour, including blacklisting, a cancellation of your insurance policy, and even jail time.”

Deepfakes, forgeries and dodgy dealers

Mdhluli said that while AI fraud is still relatively new, there are plenty of fraudulent scams where consumers are either unknowing victims or trying to defraud their insurer.

He said that Old Mutual Insure has seen cases where the same damage photos have been used in multiple claims, or where photos pulled from the internet are submitted alongside fabricated invoices.

In some cases, new AI image generation tech has been used to completely fabricate vehicle damage in its entirety.

“We’ve picked up repeated invoices with headers from third-party suppliers like glass fitment centres or repairers and are starting to see the same invoice submitted across different claims,” he said.

In one instance, an individual staged an accident, dropped off a vehicle at a panel beater, and was linked to a syndicate operating across provinces.

These kinds of insurance scams are on the rise in South Africa, he said, particularly in economically strained regions like the Eastern Cape.

Another popular area for scammers is in the second-hand market, where buyers don’t always do their due diligence before making a purchase.

In terms of insurance policies, Mdhluli stressed that the onus is on the policyholder to ensure that all material information provided is accurate.

“Insurers rely on this information to assess and underwrite the risk appropriately. The policyholder also has specific rights and responsibilities when signing on the dotted line,” he said.

To avoid any deepfake scamming, purchasers should ask for the NaTIS certificate, which is the official registration document that proves legal ownership.

If the car is still under finance, the bank will hold it until the loan is fully paid. “Walk away if the seller can’t provide it or explain why it’s missing,” he said.

Even if a physical document is produced, purchasers should check that the details match and also look out for tell-tale signs of forgeries, such as typos, inconsistencies, and bad fonts or formatting.

Note: The headline image for this article is an AI-generated image depicting “a Nissan Magnite, that has just been in a minor accident with damage to the side door”

Original Article - Business Tech

New threat to homeowners in South Africa

Mon, 30 Jun 2025 10:06:31 GMT

Severe storms and natural events are increasing in South Africa, and homeowners are warned to maintain their insurance and property to avoid high costs.

Following devastating storms in the country this month, the South African Weather Services (SAWS) issued several alerts for continued inclement conditions for the rest of the week.

Research shows that South Africa is facing a sharp rise in extreme weather events, from devastating floods to intense storms, and the situation is worsening.

This is according to Dr Mary-Jane Bopape, managing director of the South African Environmental Observation Network, who has led a new study on the scale of this growing threat.

“The climate and disaster data collected between 1980 and 2023 shows a clear increase in the number and severity of weather-related disasters across the country,” Bopape explained .

She added that human activity, especially rapid urbanisation, is compounding the problem by putting more lives, homes, and infrastructure at risk.

“We had to rely on an international database of disasters, because there wasn’t a suitable local one available for this kind of scientific study,” Bopape noted.

Using this data, the study identified KwaZulu-Natal as the province with the highest number of reported disasters, particularly floods. “There were eight major flood events recorded in 2022 alone,” she said.

According to the database, an event qualifies as a disaster if it results in at least 10 deaths, affects over 100 people, prompts a call for international assistance, or leads to an official disaster declaration.

The majority of South Africa’s weather-related disasters are floods, followed by storms, including winter storms, hail, and tropical cyclones.

Droughts and even a single recorded heatwave also made the list, though Bopape believes this is an underestimation.

“We found only one heatwave, in 2016, which clearly doesn’t reflect the reality on the ground. This highlighted the need for better local data collection,” she said.

While the country has legislation and structures in place, such as the Weather Service Act and Disaster Management Act, Bopape said South Africa still faces major challenges in early warning systems and disaster response.

“We are capable of running advanced weather models and issuing forecasts,” she said, “but when it comes to acting on those warnings, we fall short.”

Referring to the recent cut-off low system that caused severe flooding in the Eastern Cape, Bopape noted that warnings were issued in advance, but the response was inadequate.

“It’s well known where the flood-prone areas are. Yet people are still allowed to settle there,” she said. The floods resulted in thousands of damaged and destroyed homes.

She believes better planning and climate-sensitive development are crucial. “The Climate Change Act now requires local municipalities to assess their climate risk and integrate it into development planning, but we’re not doing enough,” Bopape warned.

“We need more data, better local records, and urgent action. Climate change is here to stay.”

Homeowners should be prepared

Considering the growing threat of severe storms and weather in South Africa, Nedbank noted that it’s worthwhile to consider how you can best prepare for a natural disaster.

“You can’t predict these catastrophic events, but you can put some basic precautions in place,” the bank said .

“If you’re a homeowner, being prepared is key. Regular maintenance, careful planning, and investments in safety upgrades can help protect your home and family.”

The roof is especially vulnerable during heavy storms and high winds. Nedbank advised reinforcing it with straps or clips, inspecting for damage, and keeping gutters clear to prevent water overflow and foundation damage.

Similarly, cracks in exterior walls should be sealed to avoid further deterioration. Installing impact-resistant windows and doors is another vital measure.

“Storms are common during the rainy season, and debris or hail can easily shatter standard glass,” the bank noted. Laminated glass or reinforced plastic options offer more protection.

Electrical systems and appliances are also at risk from floods and lightning. Nedbank recommended elevating plugs, switches, and circuit breakers in flood-prone areas, and installing surge protection and lightning conductors.

Outdoor furniture and potted plants can become dangerous projectiles in strong winds. “Store them indoors or secure them with straps and heavy weights,” Nedbank said.

Wildfires are also an increasing threat. Nedbank suggested creating firebreaks by clearing flammable materials within 10 metres of your home.

Fire-resistant roofing, siding, and keeping extinguishers or a hose on the property can help mitigate the danger.

Nedbank said knowing how to evacuate, where to meet, and what essentials to pack, including water, food, cash, first-aid supplies, and important documents in a waterproof bag.

Also, include pets in your planning and educate children on how to respond to different emergencies. Nedbank stressed the importance of regularly reviewing your insurance and maintaining your home.

“Your home insurance will protect you against sudden and unforeseen losses—but not damage caused by poor maintenance,” the bank said. Routine inspections and upkeep could make all the difference when disaster strikes.

Original Article - Business Tech

Eskom’s new tactic to come after rooftop solar users in South Africa

Mon, 23 Jun 2025 12:54:49 GMT

Eskom has recently confirmed it will use satellite technology to target non-compliant solar systems, and homeowners are warned to ensure their systems are properly registered.

In May, Eskom noted that it would use satellite imagery to scan the country to identify unregistered Small-Scale Embedded Generation (SSEG) systems.

The technology uses geographic mapping tools and satellite imagery to spot solar installations in municipal supply zones and cross-reference them against registration databases.

Because solar panels must face the sun, they are easily visible to satellites capturing ground images, making this method particularly effective.

Rein Snoeck Henkemans, CEO of Alumo Energy, has warned solar users that this signals Eskom and municipalities are ramping up enforcement on unregistered systems.

“Eskom and the government are tightening the enforcement of regulations on rooftop solar. It’s part of a national compliance sweep that could result in thousands of fines being issued nationwide,” he told BusinessTech.

Those who rushed to install solar systems during load-shedding must now ensure their systems are registered and compliant. Failure to do so could lead to disconnection or retroactive use-of-system charges.

To facilitate compliance, Eskom has waived all SSEG registration fees until the end of March 2026.

However, this doesn’t mean homeowners can ignore the rules. Alumo Energy has urged all solar users to conduct three simple checks to stay on the right side of the law and avoid costly problems.

To determine if your system needs registration, check if it’s under 100kW and connected to Eskom or municipal infrastructure, as these must be registered with NERSA.

“Typically, systems exceeding 100kW need a full license unless they qualify for an exemption,” said Snoeck Henkemans.

He also warned that a declaration that your inverter runs in total isolation won’t hold up if an audit shows you export a few stray kilowatts during the day.

“Grid-tied software must be locked, and the installer must program a zero-export cap if the homeowner is not licensed to push power back.”

Act while you still can

Rein Snoeck Henkemans, CEO of Alumo Energy.

Snoeck Henkeman stressed that there is no benefit to delaying registration, especially while fees are suspended.

“NERSA still requires a professional engineer’s sign-off, but that cost is insignificant compared to a forced shutdown or damaged inverter if a disconnection goes wrong.”

The second essential check is obtaining a valid Certificate of Compliance (CoC) for the solar installation.

This document certifies that the system meets South African National Standards (SANS) 10142-1 and adheres to the Occupational Health and Safety Act.

“No CoC means no legal grid connection and, crucially, no insurance payout if lightning destroys a pricey battery bank,” Snoeck Henkemans explained.

The certificate is also required for property transfers, and banks may refuse to approve a bond if it’s missing.

The next step is to ensure that the solar installer is properly registered. Only electrical contractors certified by the Department of Employment and Labour may legally install solar systems.

While not legally required, membership in the Electrical Contractors Association of South Africa (ECASA) offers additional peace of mind.

“Best practice is to ask to see the contractor’s registration card, then phone the nearest ECA or Department of Labour office to confirm its validity,” said Snoeck Henkemans.

“A five-minute call can save you a substantial rewiring bill when your municipality demands recertification.” Unfortunately, not all installers meet these standards.

Alumo Energy’s engineers sometimes encounter systems where critical components are installed incorrectly.

For example, Snoeck Henkemans said that DC isolators are exposed to direct sunlight or improperly sized cabling, due to poor workmanship or cost-cutting by unqualified installers.

“A common challenge in the solar industry is what we call ‘bakkie-brigade’ installers. They often lack the proper qualifications and accreditation and tend to cut corners or make mistakes due to inexperience,” he added.

“Luckily, they are not the norm, and more credible installers like Alumo Energy are easy to find.”

It is important to note that grid-tied solar owners supplied by municipalities are not required to register their installation with Eskom.

Solar owners whose municipalities supply electricity will need to check whether their municipality requires them to register their installation.

Original Article - Business Tech

From Advocate To Grateful Consumer

Thu, 29 May 2025 07:09:48 GMT

After building a career in the insurance industry, Sandra Snowball experienced, first hand, the importance of comprehensive insurance when she lost her home to a fire.

It has been 12 months since our home was gutted by fire. Twelve months of a journey that has been so difficult to unpack and explain to others: The sheer terror of seeing massive flames a few steps from where you are sleeping; where your child is sleeping. The helplessness of standing in the road in your pajamas at 2am, watching, while firefighters take control. And the realisation and relief that we are all standing in the road and are, for the most part, unharmed.

Completely overwhelmed, you let others lead and guide you through those first few hours and days, but then the reality hits – this is massive. We are out of our home, which is now considered dangerous and unhealthy. So, what now?

Leaning on insurance

If you are in the position to be insured (and let us be clear – I am talking appropriately and well insured), you will receive guidance and instructions as to the path forward. Knowing your broker personally is a bonus but not essential – they and their team have the experience of having guided others and will represent you in this exceedingly difficult moment. If your broker’s team is well trained, you will receive empathy and a path of least resistance to follow. Do not be fooled – it will still not be easy, but it would be almost impossible without these factors in place.

From personal experience, ensure that you are adequately insured. Do not guess. Do not underestimate. Know what things cost. Do not try to save on premiums by under-insuring – this is not a saving when you really need it and can impact your and your family’s future significantly.

We had to move four adults, three dogs, one cat and a bird to a new home and pay rental for six months – this was all covered by insurers. If you need to buy toothbrushes, socks, and deodorant – covered. Medical treatment or psychological counselling – covered! Then, you have to rebuild – builders, quantity surveyors… the list is endless but all this is covered under your policies.

Take responsibility

We, as consumers of insurance, must take responsibility for ensuring we understand what we are covered for. Ensure your broker answers the questions you have – but equally, ensure you are honest in your information provided. Be prepared to pay for your cover and equally, engage with your policy and broker.

Those of you who know me know that I have worked in the insurance industry for most of my adult life. This industry has given a lot to me and I am passionate about this industry and, specifically, the role of brokers and financial advisers in our country. Little did I know that my years of advocacy on behalf of this industry would become so personal and vital to rebuilding my and my family’s life.

When you are given professional advice from a lawyer or doctor, you take the time to engage and listen – is it not worth your time to give your broker/financial adviser/policies the same serious contemplation, time, and engagement?

Insurance is not a grudge purpose – it is essential to rebuild your life in times of loss!

Original Article - FIA

Criminals targeting shopping malls in South Africa

Wed, 21 May 2025 13:27:40 GMT

South Africans who enjoy visiting shopping malls are being warned that criminals are increasingly targeting vehicles parked at these centres.

Private security companies and the South African Police Service (SAPS) have raised the alarm over a rise in car thefts involving remote jamming devices.

In Pretoria, security firm Bull Security has reported a notable increase in these incidents, especially in the eastern parts of the city, such as Mooikloof.

Remote jamming is a method where criminals block the signal between a car owner’s remote and their vehicle, preventing the car from locking.

Bull Security spokesperson French Jooste explained that thieves typically wait in mall parking areas and jam the signal when the driver walks away.

This leaves the vehicle unlocked and vulnerable to theft, often without the owner even realising it. “The device used to jam the signal can be as simple as a gate remote or more advanced,” said Jooste.

“Because of the signal interference, your car won’t lock, and if you don’t check, you’ll walk away thinking it’s secure.”

He advised drivers to always manually check that their doors and boot are locked before leaving their vehicle and to never leave valuables visible inside.

Jooste also stressed the importance of parking in visible, busy areas, preferably those monitored by CCTV, to deter criminals.

He added that if drivers notice issues locking their vehicles, they should immediately report them to on-site security.

Last year, a member of parliament (MP) was a victim of this uptick in vehicle thefts from shopping malls.

A car worth R4 million belonging to the MP was stolen from a prominent mall in Gauteng. Fortunately, the vehicle was recovered outside Polokwane before it could be smuggled into Zimbabwe.

Insurance companies and the SAPS have both said they are aware of the targeting of high-value vehicles in mall parking lots.

According to SAPS, organised syndicates are heavily involved in these crimes, which include both theft and hijacking.

Their latest statistics show that over 7,700 vehicle thefts and more than 4,800 hijackings occurred in the last three months of 2024—an average of 140 incidents per day.

While not all occur at shopping malls, hotspots include larger urban areas in Gauteng, the Western Cape, and KwaZulu-Natal.

Tracker’s Chief Operating Officer, Duma Ngcobo, confirmed that malls remain key hotspots for vehicle crimes.

He highlighted that hijackings peak on Fridays between 15:00 and 22:00, while car thefts are most common on Saturdays from 11:00 to 15:00.

What happens to South African cars hijacked or stolen

Syndicates in Botswana, Mozambique, Namibia, Zimbabwe, and local chop shops are the primary consumers of stolen vehicles from South Africa.

According to experts like security firm Fidelity Group and Cartrack, the cars are either dismantled for parts or smuggled into neighbouring countries.

The demand is driven by economic hardship, both locally and abroad, where the high cost of original vehicle parts makes cheaper, often illicit, alternatives more attractive.

Popular models like the Toyota Hilux, Fortuner, Corolla Cross, and RAV4 are frequent targets, due to their durable engines and ability to handle rough terrain.

As recent as Thuesday 15 May, Members of Provincial Anti-Smuggling Team in Limpopo intercepted a stolem vehilce from South Africa.

The team noted that it intercepted a suspected stolen white Toyota Corolla Cross vehicle intended to be smuggled to neighbouring Zimbabwe.

Fidelity Services Group noted that about 30% of hijacked vehicles are smuggled across the country’s borders and sold at lower prices in poorer nations, where new cars are unaffordable.

According to Cartrack, the popular smuggling routes used by criminals include:

Through Sikwane in North West for Botswana,
Various points in KwaZulu-Natal and Mpumalanga for Mozambique, and
Vioolsdrift in the Northern Cape for Namibia, and across the Limpopo River—sometimes by donkey cart—for Zimbabwe.

In one extreme case, syndicates in northern KZN built makeshift steel bridges to move stolen vehicles over barriers.

Once across the border, vehicles are fitted with fake plates and often rerouted through Zambia, a major trafficking hub thanks to its central location and shared borders with eight other countries.

In response, South African authorities have stepped up efforts to curb smuggling. In KZN, a long-delayed 25-kilometre concrete barrier along the Mozambique border began construction in phases.

As of late 2024, just over 7 kilometres of the first section had been completed. Even this partial completion has reduced vehicle smuggling, with monthly cross-border thefts dropping noticeably.

Original Article - BusinessTech

Important information for people with electric fences in South Africa

Wed, 07 May 2025 10:03:45 GMT

The South African Bureau of Standards (SABS) published new safety regulations for electric fences nearly two years ago, and while not widely publicised, they are being enforced to some extent.

Fidelity Services Group’s head of marketing communications, Charnel Hattingh, told MyBroadband that some aspects of the regulations are not being met.

“They are being enforced from an installer perspective. However, there is currently no outside body doing inspections and validating that the standards are being met,” she said.

“This is a topic currently being discussed.”

The latest prescribed safety standards for electric fences set new requirements for material quality, warning signage, installation, and maintenance.

Regarding maintenance, the protocols require regular inspections to ensure electric fences remain in safe working condition.

Hattingh told MyBroadband that two separate inspections are required, one monthly and the other quarterly.

“This is aimed at doing a visual inspection and corrective maintenance to ensure the fence remains operational and within the guidelines of these standards,” she said.

“It is, however, the responsibility of the fence owner to get a certified person out to do these inspections.”

The standard also stipulates enhanced testing methods to verify the functionality and safety of the electric fence systems after installation.

Douglas Deerans, the manager at security company Gido Group, previously told MyBroadband that the standard also specifies higher-grade materials for components like wires and insulators to enhance durability and safety.

However, Hattingh told MyBroadband that this shouldn’t impact end users who procure their electric fencing equipment through any of the mainstream suppliers in South Africa, as their products meet this requirement.

The revised standards, published under SANS 10222-3: 2023 Edition 5.1, included several updates affecting electric fences for residential properties, domestic pet control, strip grazing, and game control.

They include several fundamental changes for electric fence systems.

Deerans told MyBroadband that the standards include new requirements for placing warning signs along electric fences.

The maximum distance between signs remained 10 meters in urban areas. However, the revised regulations stipulate that they must also be placed over all gates and at the corners of a property.

This includes vehicle and pedestrian gates.

He also said the standards include more detailed instructions for the proper grounding and earthing of electric fences, which aim to prevent electrical hazards.

They stipulate that conduits are required for the cabling from the fence to its earth spikes and that these cables may not be buried.

“These updates focus on improving overall safety and ensuring better performance of electric fence systems,” said Deerans.

Insurance warning

Deerans said ensuring compliance is critical for insurance purposes.

He shared an example of an incident where an insurance company rejected a claim involving damage to an electric fence as the owner did not have a certificate of compliance (CoC), nor did they have a surge protector installed.

However, Deerans warned that while a CoC is important, many insurance companies will conduct further investigations to ensure a system is up to standard, regardless of whether the owner has a CoC.

When a customer cannot produce a certificate and their electric fence installation is not up to standard, there is a good chance their claims will be rejected.

While South Africa’s legislation for non-lethal electric fences originated in the 1980s, they were largely unregulated until March 2011.

On 25 March 2011, the South African government published changes to the Electrical Machinery Regulations within the Occupational Health and Safety Act to better regulate non-lethal electric fence systems.

They aimed to not only safeguard the public against potentially dangerous systems, but also to eliminate telephone, TV, and wireless interference caused by dodgy earthing and poorly-installed systems.

Original Article - My Broadband

Common reasons insurance claims are denied: What you need to know

Tue, 08 Apr 2025 13:30:25 GMT

While stories abound of people fighting with their insurance companies over one or other issue – although friends and family may not be a reliable source – a minimal number of complaints reached the office of the Ombudsman for Short-term Insurance (OSTI) last year.

And, based on the figures, it seems that those complaining are mostly not in the right. This, according to the report, was due to factors such as policy exclusions, a lack of people taking “due care” of their possessions, lack of maintenance or wear and tear when it comes to homeowner’s insurance, as well as “criteria for the insured event not being met,” which includes premiums not being paid.

Just more than 5.5 million claims were filed with short-term insurance companies last year. Over the same period, OSTI received 10 228 complaints – or around 0.19% of all insurance claims.

The bulk of these claims were wrapped up by OSTI, while 1 168 were resolved in favour of the insured party – or about 13%. And, in almost 92% of cases, the insured party felt they were not treated fairly, with many issues hinging around a lack of information.

As OSTI noted in a statement that people who sign up for insurance, admittedly a grudge purchase, simply don’t read the fine print, which contains crucial details about exclusions not covered by the policy. “These exclusions help insurers manage risk and keep premiums affordable.”

During the 2023 financial year, around 40% of all complaints were categorised as motor vehicle insurance, most of which were accident-related claims and were declined because of a policy exclusion.

Among these were claims involving speeding, followed by misrepresentation or non-disclosure at the time of taking out the policy or during the term of the policy, and at claim stage.

The second highest number of complaints, about a quarter, related to homeowners’ claims declined because of policy exclusions. Most of these claims related to damage caused by acts of nature and those declined were based on gradual deterioration, lack of maintenance and wear and tear, followed by defects in design or construction.

There are, however, instances in which the insurance company is totally in the wrong.

In one matter that was decided in the North Gauteng High Court, involving a car accident in which the other party claimed liability, Acting Judge, Takalani Ratshibvumo found that an insurance company was trying to get out of paying for a claim by relying on what it viewed as misrepresentations that were not vital to the matter.

In the ruling, Ratshibvumo was rather scathing about the fact that the insurance company wanted paperwork that wasn’t important, and that the claimant said he was alone in the car, while the accident report said there was a passenger.

“The only possible reason in the demand [for documents] by the first respondent could be to try and find a lie or misrepresentation on the part of the applicant in a desperate search for a reason to repudiate a claim even in circumstances where there appeared to be none.”

Ratshibvumo pointed to a key part of the Short-term Insurance Act of 1998, which states that insurance companies must pay out unless:

A “representation or non-disclosure is such as to be likely to have materially affected the assessment of the risk under the policy concerned at the time of its issue or at the time of any renewal or variation thereof”.

Hannes Bester, Manager of Adjudication at the National Financial Ombud Scheme, under which OSTI falls, said “if a complaint is dealt with by this office and the complainant decides to sue the insurer, we will close the complainant and let the court proceedings continue. We do not have jurisdiction on a complaint which is also litigious.”

However, going to court is costly. The best policy when dealing with insurance so that a claim doesn’t get repudiated is honesty, and to always read the fine print.

Ernest North, co-founder of Naked Insurance, told Personal Finance that it sometimes sees claims being declined due to misunderstandings about what is covered or, in some cases, dishonesty.

Examples it has dealt with include:

A customer that reactivated full cover shortly before submitting a claim, but the app data showed he was near the scene of the incident at the time he reactivated. This raised red flags, and further investigation showed that the accident had likely occurred before he turned full cover back on. AI flagged this, and human evaluation confirmed the timing discrepancy, demonstrating how technology helps prevent fraudulent claims.

A policyholder bought a new policy shortly after an accident, perhaps assuming that the claim would be processed as if the policy was active beforehand.

Speeding can also play a key role in determining the outcome of a claim. One policyholder insisted they were driving within the speed limit when their car veered off the road and collided with a barrier. However, the post-crash analysis and the data obtained from the car’s computer system told a very different story, revealing that the vehicle was traveling well above the speed limit at the time of the accident. The excessive speeding contributed to the crash, leading to the claim being rejected for reckless driving. Luckily no one got hurt in this instance.

As Edite Teixeira-Mckinon, Lead Ombud of the Non-life Insurance Division at the National Financial Ombud Scheme points out:

It’s important to read policy documents and understand how any specified exclusions can impact the validity of a claim.

It’s essential that insurance clients tell the truth when making a claim because the claim could be denied due to misrepresentation.

Original Article - MSN

Ombud advises insurance holders to read their policies carefully

Tue, 08 Apr 2025 08:04:07 GMT

One of the reasons why insurance claims are rejected is because the insured failed to understand the details of the policy, especially what is covered and what isn’t, according to the Ombud for Short-Term Insurance.

Many consumers of insurance products ignore the fine print which contains crucial details about exclusions; these are situations or events that are not covered by the policy.

These exclusions help insurers manage risk and keep premiums affordable.

The Non-life Insurance Division of the National Financial Ombud Scheme reported that during the 2023 financial year, around 40% of all complaints were generated from motor vehicle insurance with the majority of these complaints involving accident-related claims that had been declined on the basis of an exclusion in the policy.

The predominant exclusions were a lack of due care or precaution in preventing or minimising the loss, especially in claims involving speeding, followed by misrepresentation or non-disclosure at the time of taking out the policy or during the term of the policy, and at claim’s stage.

The second highest number of complaints, at around 25%, related to homeowners’ claims declined on the basis of policy exclusions.

The majority of these claims related to damage caused by acts of nature and declined on the basis of gradual deterioration, lack of maintenance and wear and tear, followed by defects in design or construction.

Edite Teixeira-Mckinon, Lead Ombud of the Non-life Insurance Division, said it was imperative that customers read and understand their policy and make sure that it provides the cover requested.

Teixeira-Mckinon said it was also important to ensure that customers have insured an item for the correct value because when they successfully claim, the insurer’s liability, generally, cannot exceed the sum insured.

“Prices tend to rise over time, so it’s worth double-checking the replacement value of items every year. Otherwise, you may find that your insurance payout falls short of the amount you expected.

“If you’ve not insured something for the correct value, this could mean that you are underinsured, and the insurer would be entitled to apply average to a claim.

“This will result in a smaller claim’s settlement than you expected and may result in financial detriment,” she said.

With regard to exclusions, Teixeira-Mckinon said specific behaviours or circumstances which, if found to exist during an incident from which a claim arises, entitle the insurer to reject that claim.

She cited a recent example of a motorist who was found to be driving faster than the prescribed speed limit at the time of the accident.

The driver was found by the insurer to be travelling at a significantly faster speed than the regulated speed limit, triggering the exclusion in the insurance policy regarding driving at a speed in excess of the speed limit.

The insurer relied on this clause and the facts of the case, including speed data, to reject the claim.

The insured, in turn, contended that he had only accelerated to such a speed to avoid an imminent collision.

However, on consideration of the facts of the case, including the road layout at the accident location and speed data just prior to the accident, it was clear that this version of the events was not supported.

“Two lessons emerge from a ruling made in this case dismissing the complaint. First, is the importance of reading policy documents and understanding how any specified exclusions can impact the validity of a claim.

“Second, it’s essential that insurance clients tell the truth when making a claim because being found to have done otherwise will undermine any claim and may lead to the insurer relying on misrepresentation as another reason to decline a claim,” said Teixeira-Mckinon.

As is the case with many legal documents, the intended meaning and import of words and phrases may not be apparent on a first reading.

Perceived ambiguity can lead to misunderstandings that, all too often, can result in complaints being made to the National Financial Ombud Scheme.

Teixeira-Mckinon also said if customers are unsure about the meaning of any of the words or phrases used in their insurance policy, especially in the exclusion clauses, they can ask an insurer or broker to explain them.

Original Article - MSN

Warning about solar power systems in South Africa

Fri, 04 Apr 2025 07:02:52 GMT

South African insurers have different coverage conditions for home solar power systems, which may include expensive sign-offs by two types of engineers and registration with a client’s relevant power utility.

The Consumer Goods and Services Ombud recently warned that there has been a rise in complaints about defective solar systems, battery, and generator installations.

Among the major problems has been a surge in so-called “fly-by-night” operators that installed alternative energy systems without the necessary expertise or qualifications.

Standard Bank Insurance products head Dr Hardy Ncube warned that unqualified installers may impact insurance claims if something goes wrong with the installation.

Ncube stressed that insurers do not cover faulty equipment, defective design, or a non-compliant installation and the damage these elements may cause to an insured home.

The major problem is that there is currently no generally agreed-upon standards for these installations to comply with the grid code.

Eskom will only approve a system if its design has been approved by a registered professional electrical engineer and the system has undergone an embedded generation compliance test.

This is in addition to several other criteria, such as installing a smart bidirectional meter.

The Electrical Contractors’ Association of South Africa (Ecasa) disputes the requirement of engineer sign-off and argues that a Master Electrician or Installation Electrician has adequate training and expertise to install and give the stamp of technical approval.

Not all municipalities have established small-scale embedded generation (SSEG) policies and registration procedures, complicating the issue further.

That has caused even more confusion for households and businesses who want to comply with their distributor’s requirements.

MyBroadband asked several other major insurance companies about their coverage conditions for solar power systems.

While solar panel fires are rare, they can occur due to faulty installations or low-quality equipment.

CoC a must

Outsurance chief client relations officer Natasha Kawulesar said the insurer’s comprehensive buildings policy covered all listed events, including theft and Acts of Nature, if a home solar system has a CoC from a qualified electrician.

Outsurance does not currently require registering the system with the relevant power distributor as a condition for cover.

Santam’s head of personal underwriting, Marius Kemp, told MyBroadband that the insurer also mostly considers a CoC sufficient for a valid claim.

However, an engineer may need to provide additional compliance documentation for a large number of solar panels installed on a standard residential building roof.

“In all cases, it is advised that the system is installed in accordance with the appropriate building regulations applicable and be registered with the relevant authority applicable to that location,” Kemp said.

Kemp said that Santam may regard non-registration of the system as “material to the proximate cause” of the loss or damage. In simple terms, it may result in a claim being denied.

“In terms of the general condition ‘Duty of care’, applicable to the entire policy contract, it may come into play and negatively impact such a claim,” Santam said.

Hail damage is an example of an Act of Nature that is generally covered as part of a building’s insurance policy.

Naked Insurance co-founder Ernest North said the insurer’s customers must ensure their solar power systems are installed correctly and safely.

“A valid electrical CoC is sufficient to confirm that the system has been installed correctly and meets required safety standards.”

However, North said Naked would also assess whether the homeowner took reasonable steps to ensure the system’s safety and proper maintenance.

He explained although Naked “generally” won’t decline a claim because a system was not registered with the relevant utility, the insurer nonetheless encouraged customers to do so where possible.

“We understand that many municipalities are still finalising their registration procedures, and delays in approvals are common,” he said.

He also cautioned that a common mistake homeowners made was underinsuring their solar equipment.

“It is important to insure solar panels, inverters, and batteries for their current replacement value —including installation and inflation — not just their original purchase price,” North said.

“If you live in a sectional title unit, your body corporate or managing agent usually buys an insurance policy on behalf of all owners to cover the buildings.”

“In such a case, you should ask them to increase the sum insured for your unit’s building cover to explicitly cover your alternative energy valuables.”

Civil engineer approval for certain systems

While it did not respond to our queries, Auto & General recently published an article explaining its requirements.

Auto & General also requires a valid electrical certificate of compliance (CoC) issued by a qualified and registered electrician.

It emphasised that solar panel and inverter CoCs are more specialised than standard electrical CoCs and typically comprise nine pages.

Auto & General also said that South African National Standards (SANS) “mandate” that roof-mounted solar panel installations be inspected and approved by a qualified civil engineer.

However, this requirement may not be relevant to claims for electrical or fire damage caused by the system.

“Failure to provide a civil engineer’s report may result in claim rejections for roof collapses or wind-related damage to the solar panels,” Auto & General said.

The insurer does not necessarily require registration with the relevant power distributor to approve a claim.

In cases where a distributor has an SSEG registration process, the details it requires may help assess a system’s value and potential risk, resulting in appropriate coverage and premium calculations.

All the insurers seemed to agree that an electrical engineer was not needed to sign off on the system.

That said, it is currently disputed whether an electrician is qualified to sign off on generation compliance test reports, which are necessary for embedded generation CoCs.

Original Article - My Broadband

The Effective Use of Disclaimer Notices and Clauses to Exclude Liability

Mon, 24 Mar 2025 14:18:54 GMT

In recent years, South African courts have upheld the enforceability of disclaimer notices, provided they meet specific legal requirements.

A disclaimer notice is a contractual clause that exempts one party from liability for losses incurred by another party. Businesses frequently use these notices to mitigate or limit risk.

The long-standing Supreme Court of Appeal (SCA) case of Durban’s Water Wonderland (Pty) Ltd v Botha and Another established the necessary principles for relying on a disclaimer notice to exclude liability.

The SCA developed a two-part objective test to validate a disclaimer notice for excluding liability. First, it must be determined whether reasonable steps were taken to make the notice clearly visible, ensuring that patrons are aware of and prepared to be bound by its terms. The SCA stated that the notice itself must be prominently displayed in a place where one would ordinarily expect to find such a notice. Second, the language of the notice must be clear and unambiguous – the terms must be easy to understand and have only one meaning or interpretation.

The principles established in Durban’s Water Wonderland were further reinforced by the Consumer Protection Act (CPA).

Section 49 of the CPA addresses clauses that limit a supplier’s risk or liability. It prescribes that “any notice to consumers or provisions of a consumer agreement that purport to limit in any way the risk or liability of the supplier or any other person must be drawn to the attention of the consumer in a manner and form that satisfies the formal requirements of… plain language… that is likely to attract the attention of an ordinary alert consumer, having regard the circumstances”.

The CPA does not prohibit the use of disclaimer notices entirely, but it does invalidate those that seek to exclude liability for gross negligence. Section 51(1)(c)(i) specifically prohibits any terms that purport to exempt a supplier from liability for loss sustained as a result of gross negligence.

Siyamanga v Balcony Shisa and Chill case

In the recent case of Siyamanga v Balcony Shisa and Chill (handed down on 27 January 2025), the High Court in Johannesburg delivered a judgment that aligns with these principles and legislation.

The plaintiff instituted an action against the defendant, a restaurant, alleging that she sustained injuries after slipping and falling on the defendant’s premises on 9 April 2022.

The central issue was whether the defendant could rely on a disclaimer notice to exclude liability for the plaintiff’s injuries. The court’s analysis was guided by the principles established in Durban’s Water Wonderland.

The court emphasised that the language of the disclaimer must be clear and unambiguous. In this case, the disclaimer notice explicitly stated:

“DISCLAIMER OF LIABILITY

All persons entering these premises, or using any amenities or facilities on these premises, do so entirely at their own risk and subject to the following conditions:

The owner, manager and/or operator of these premises, amenities and facilities and its directors, officers, employees, agents and representatives do not accept any liability whatsoever for any injury or death of any person or the loss or destruction of or damage to any property, whether arising from fire, theft or any other cause whatsoever and by whomsoever caused or arising from negligence or gross negligence or wrongful acts or omissions of the owner, manager and/or operator of the restaurant or its directors, officers, employees, agents and representatives.”

The court found that the disclaimer’s language was unambiguous, meaning its terms had to be upheld.

The court then assessed whether the disclaimer was properly incorporated into the contract between the plaintiff and the defendant. This required determining whether the plaintiff had actual knowledge of the disclaimer or acted in a way that reasonably led the defendant to believe that she had accepted the terms of the contract. The defendant bore the onus of proving that the plaintiff was aware of and had accepted the disclaimer’s terms.

The plaintiff testified that she did not see any disclaimer notice when she entered the premises on 9 April 2022 but acknowledged seeing the notice when she returned on 30 April 2022.

The defendant presented two witnesses, both of whom testified that the disclaimer notice was prominently displayed at the entrance to the premises on the date of the incident. The court found these witnesses to be credible because their testimonies contained no material contradictions.

Applying the objective test, the court found that the defendant took reasonable steps to bring the disclaimer to the patron’s attention.

The disclaimer was prominently displayed at the entrance, where patrons would reasonably be expected to see it. To this end, the court was of the view that the defendant had taken all reasonable steps to ensure that patrons were aware of the disclaimer. This included the size and visibility of the notice, as well as its placement at the entrance.

The plaintiff failed to provide sufficient counterevidence to dispute the defendant’s claims that the disclaimer was displayed and that reasonable steps were taken to inform patrons. The court noted that the plaintiff did not call her companion, who was present on the day of the incident, to testify, which could have corroborated her version of events.

The balance of probabilities therefore favoured the defendant’s version that the disclaimer notice was prominently displayed and that reasonable steps were taken to bring it to patrons’ attention. Notably, the court did not rely on or refer to the similar provisions in the CPA, likely because this issue was not raised in the pleadings.

The Siyamanga judgment follows similar reasoning to Stearns v Robispec (Pty) Ltd , where the court found that reasonable steps were not taken to bring a disclaimer notice to patrons’ attention. Despite the presence of notices with large script headings at the defendant’s entrance, the court found that the disclaimer’s wording was written in small script and lacked a distinct heading, making it inconspicuous. The court concluded that the defendant had not taken sufficient steps to ensure patrons were aware of the disclaimer terms.

Businesses seeking to limit liability through disclaimers should ensure that disclaimers are prominently displayed where patrons can reasonably be expected to see them. Clear, unambiguous language should be used to avoid legal challenges. Photographic or documentary evidence should be retained to prove the disclaimer’s visibility. Disclaimers must comply with the CPA, ensuring they do not attempt to exclude liability for gross negligence.

The Siyamanga case reaffirms that properly drafted and displayed disclaimers can effectively exclude liability, provided that businesses comply with established legal principles.

This article was written by Sandra Sithole, a partner at Webber Wentzel, and Rethabile Shabalala, a senior associate at the same law firm.

Original Article - Moonstone

Warning to people with solar panels in South Africa

Mon, 17 Mar 2025 07:45:55 GMT

South African insurers are warning of faulty equipment in household solar installations, some of which have damaged property.

Standard Bank Insurance is the latest to join this chorus, which urges clients to ensure that rooftop solar is installed correctly.

The sudden return of load-shedding and heightened electricity prices may again prompt South African households and businesses to install solar.

However, for homeowners considering moving to solar, reports of faulty equipment and dangerous installations causing damage are a cause for concern.

The Consumer Goods and Services Ombud (CGSO) recently issued a warning to households after it noted a rise in complaints about solar systems and generators.

The head of products at Standard Bank Insurance, Dr Hardy Ncube, said insurers have also started to see a rise in unqualified and inexperienced solar installers, leaving some households with a non-functional power solution.

While rare, more common incidents include structural damage to the home due to defective design and workmanship or costly repairs after installation.

Ncube said that in the absence of legal requirements to become a solar installer, consumers must do their homework before choosing a supplier to ensure that the job is completed properly.

While some homeowners and businesses consider insurance a concern that comes after a solar installation, understanding what an insurer requires provides helpful guidance.

Ncube pointed out that it’s important to note that insurers do not cover faulty equipment, defective design or non-compliant installation, including damage to the home resulting from such.

To ensure this is not the case, your insurer will typically ask you to provide an invoice detailing the brand, size, type and number of solar panels, inverters and batteries.

The insurer will also typically require an Electrical Certificate of Compliance as required by regulation, evidence of municipal approval where required, and sometimes a structural engineer’s certificate to ensure the soundness of the installation.

In response to the problem of non-compliant installations, the South African Photovoltaic Industry Association (SAPVIA) reviewed its current registration system.

Ncube said it has created the PV Green Card assessment as a form of accreditation that separates qualified and trained installers from the so-called ‘bakkie brigade’.

The bakkie brigade consists of installers who claim to do the job but use components that have not been certified or don’t have proper warranties.

It’s also essential to confirm that a registered electrician will be used to connect the system to the main distribution board and that the required Certificate of Compliance will be issued.

Notably, a reputable solar installer will conduct a site visit to assess the conditions of the roof and property before finalising a quotation, and this should always include a workmanship warranty, Ncube said.

“Finally, it is always a good idea to ask anyone doing work on a property to provide proof of appropriate insurance to cover any damage that may take place.”

Once the reputation and expertise of an installer has been confirmed, it’s important to take a close look at the details of the system being offered.

“Unfortunately, the high demand for solar energy in South Africa has led to a flood of sub-standard equipment into the market,” Ncube explained.

“While the prices of these components may look attractive, the long-term costs of inefficiency, failure and electrical and fire hazards make this a route to avoid.”

Online research is again suggested, as well as making sure the products offered are backed by appropriate manufacturers’ warranties or guarantees and the company carries the relevant licenses or accreditation to install.

Original Article - My Broadband

Insurance, technology a dual defence against cybercrime

Wed, 26 Feb 2025 08:51:39 GMT

The first step in combatting cybercrime is to realise that many of the criminal syndicates involved in this space are run like de facto businesses; they operate from offices with large staff complements, all working long shifts to meet targets. This cold truth was shared in the first part of a double-header presentation on cybersecurity, held at Insure Talk 46, a virtual insurance seminar.

Cybercrime affects us all

Two presenters set out to educate an audience of local insurance and insurance broking professionals on cybercrime and its impact on small, medium and micro-enterprises (SMMEs). First up was Macleod Burrill, CEO of Cyber Safe Consultants. He warned the audience of the growing universe of bad actors hell-bent on exploiting information technology (IT) security vulnerabilities to compromise access credentials and data, usually to extract some form of financial gain. “These guys operate worldwide, and no company or individual is exempt; if they find a way in, they will exploit you,” he said.

The expert singled out a lack of cybersecurity knowledge and skill as among the major constraints in combatting this type of crime, but there are plenty of other challenges. “There is a lack of context with regard to IT security incidents and a lack of agility in identifying and addressing breaches when they happen,” Burrill said. He warned about the ‘install and forget’ approach that many firms took when installing firewalls and anti-virus software. Finally, he commented on the “prohibitive costs associated with specialist security services and solutions.” It is a typical catch-22; you cannot afford security, nor can you afford the consequences of a security compromise.

There are countless reports documenting instances of cybercrime and the staggering financial consequences of the same. For example, in 2023, there was a notable increase in cyberattacks, resulting in more than 343 million victims worldwide. And in 2022, around 236.1 million ransomware attacks took place. “Up to 93% of data breaches are motivated by financial gain, [and] 46% of all cyber breaches occur in companies with fewer than 1 000 employees,” Burrill said. “By 2025, it is estimated that 60% of organisations will use cybersecurity risk as a key factor in determining transactions and business engagements with third parties.”

Staggering impact, running to trillions of dollars

It escalates from there, with cybercrime predicted to cost the world USD9.5 trillion in 2024. Nobody is immune. Over the past few years, the South African media has reported on data breaches at a long list of household brands including Liberty Group, Life Healthcare Group, Momentum Metropolitan Holdings, PPS, Stefanutti Stocks, and TransUnion, to name a few. “These are large organisations that spend millions on cybersecurity skills, solutions and personnel each year; and they are still breached,” Burrill said.

In contrast, SMEs have small cybersecurity budgets and employ generalist IT people rather than cyber specialists. This, coupled with the reliance on free anti-virus software and limited cybercrime awareness, makes them even more prone to cyberattacks. The risk to domestic insurance brokers is significant too, as illustrated in this ‘what if’ scenario. Imagine you are a small broker providing solutions to various commercial insurance clients. During renewal negotiations, your email is spoofed, and your banking details changed, resulting in your client’s renewal deposits being diverted. The potential financial and reputational damage is immense.

The presenter contended that cybersecurity was non-negotiable in a Protection of Personal Information (POPI) Act world, citing a recent R5 million fine handed down by the Information Regulator to the Department of Justice and Constitutional Development. Against the triple threat of business interruption, regulatory enforcement and reputational damage, the audience was encouraged to take the necessary steps to mitigate risk, beginning with employee education. “You are only as strong as your human firewall, there are multiple avenues that you can pursue to test your staff and educate them about these issues,” Burrill said.

Some fundamental cyber insurance covers

Sarel Lamprecht, MD of Phishield Underwriting Management Agency, furthered the cybersecurity discussion by considering the impact of a data breach on a firm. “Cyber is an ever-growing risk,” he said. “Luckily, there have been decent strides made in combatting cyber risk through cybersecurity and insurance solutions.” He observed that the typical commercial insurance policy should offer a mix of education, risk assessment, risk mitigation tools and services, and, of course, insurance benefits. He further held that a holistic approach to underwriting cyber risk should span the core cybersecurity functions of identify, protect, detect, respond and recover.

The presenter said that a cyber insurance policy covered the insured against first-party losses due to BI, data restoration costs, cyber extortion costs and computer crime alongside third-party losses such as third-party claims, multimedia liability and regulatory expenses and penalties. Most policies also provide for emergency response costs, proactive mitigation and monitoring tools, and a reactive resolution centre. These covers were further explained in the context of the rising frequency and severity of data breach events, supported by figures from global IT giant, IBM.

Data breach lifecycle: identification to containment

According to the IBM Cost of a Data Breach Report 2024, the average cost of a data breach, measured globally, stood at US$4.88 million. The average cost is slightly lower in South Africa, at around $2.8 million, or just short of R50 million per breach, though there is quite a variance across economic sectors. Lamprecht then explained the life cycle of data breaches under two headings: the mean time to identify a breach (MTTI), and the mean time it takes to contain a breach (MTTC).

“The longer the life cycle of a breach, the more costly the breach is,” he said, before welcoming the slight improvement in this measure over the latest year. Swifter data breach resolution was attributed to the global adoption of best practice risk exposure reduction techniques. Firms find out about data breaches via one of three channels: first, by their own security teams and tools; second, by disclosure through a benign third party; and finally, through a disclosure from the attacker or threat actor. The costliest remediation stems from an attacker-notified breach.

Your writer was intrigued by the four-pillar breakdown of costs related to domestic data breaches. According to IBM, the notification of the breach accounts for around 8.8% of the total. This first pillar centres on notifying data subjects and ongoing engagements with ombudsman schemes, regulators and third-party experts, where necessary. Pillar two, described as post-breach response, accounts for close to 28% of data breach costs. In this stage, the firm might pay for help desk and inbound communication, credit monitoring, identity protection services, legal expenditures and regulatory fines.

“Costs incurred for detection and escalation account for 33.4% of the total and include forensic and investigation activities, assessment and audit services, crisis management, communication to the executive and board escalation of the matter,” Lamprecht explained. Finally, the fourth pillar, at just over 30% of the total, deals with loss of business costs including “business disruption and revenue losses due to ecosystem downtime, cost of losing and acquiring new customers, reputational damage and diminished goodwill.” The presentation shared further insights into extortion and ransomware and initial attack vectors before concluding.

Prevention is better than cure

The clear message to FAnews readers is that prevention remains better than response, especially when considering a risk that can cost your business millions of rand and hinder your operations for months. It is clear that insurance and technology are part-and-parcel of any cyber risk mitigation strategy.

“Insurance policies rely on or incorporate certain tools and technologies to reduce cyber risk to an acceptable level; but the cost of technologies versus insurance is probably between 10-to-one and 20-to-one,” Lamprecht concluded. “This makes insurance an integral part of the recovery process following a breach … it fits firmly into the recovery phase.”

Original Article - FA News

What Drives the System?

Wed, 08 Jan 2025 06:37:43 GMT

Insurance, a legal contract, has been advertised as a commodity lately, like the utensils we use in the kitchen. Even the conclusion period of an important contract is measured in minutes, with no regard to the details of the contract conditions.

The first lesson in insurance is the implied principles of insurance. Over centuries these principles manifested themselves in common law and became embedded in the law of countries as fundamental elements of insurance policies. Despite variations, these principles are part of everyday life and the insurance products we purchase.

These principles are:

Good faith

Good faith is instilled by our parents, and later, we continue this ‘doctrine’ with our spouse and our children. It is expected between us and our employer and in life in general. Faith, in whatever form, rules and regulates our lives. All insurance is concluded in good faith, and claims are met in good faith: be honest, declare everything, and let the Insurer decide whether the information is relevant.

Insurable interest

One of our life ambitions is to accumulate: whether it is knowledge, wisdom, skills, or material values. These material values may be displayed in our wealth. Although our ambitions are dear to us, our interest in protecting what we have collected should not be overwhelming. Insurance can meet our need to protect what we have accumulated.

Indemnity

We are all exposed to the misfortune of life: some are sad and irreplaceable, others are replaceable, but not complete, and in the case of emotional loss, it can take years to heal.

Insurance can compensate for the financial loss, however, nothing more or nothing less. Indemnity is the financial transaction undertaken by the Insurer and maybe repair, replacement, or cash in lieu.

Subrogation

Often the nature of the loss qualifies the Insured for an insurance claim as well as a right to recover the loss from a third party. To protect the principle of indemnity, after the claim has been settled, the policy will state that the Insurer obtains the right of the recovery against the third party. The success or otherwise will not affect the settlement of the claim. However, the Insured cannot claim from the Insurer as well as from the third party.

Proximate cause

The risks insured are normally stated in the insurance document. Some policies are wide in coverage and others are limited to specified perils. Due to their nature, there are also uninsurable risks. Before any claim is submitted, the Insurer wishes to know what happened – the proximate cause.

Contribution

For various reasons, there may be more than one insurance policy in place for the same risk. The principle of contribution prevents the Insured from claiming from more than one insurance policy for the same incident. The Insured will only be compensated for the value of the loss shared between the participating Insurers.

In Conclusion

Insurance is the tool to mitigate the financial loss following a mishap that may occur. The compensation is to ensure that life continues with the least disruption. Insurance is not a bottomless pit of ‘gold’ and cannot compensate for sorrow and loss of joy. Insurance can only assist financially in the loss of wealth.

Insurance is no different from any other product we buy. We only get what we pay for. The Insured buys a ‘promise to compensate’ and it is the duty of the insurance advisor and insurance underwriter to assist the Insured to fulfill that promise in the event of an insured mishap.

Original Article - Consort

Jewellery insurance: Don’t let warranty clauses take you by surprise

Fri, 13 Dec 2024 06:52:12 GMT

Consumers need to be aware of and understand the specific warranty clauses in their insurance policies, particularly those related to valuables such as jewellery. These clauses often have strict requirements, such as keeping items in a locked safe when not being worn, and failure to comply can result in a reduced claim payout, says the Office of the FAIS Ombud.

It says clients of short-term insurance policies are often under the impression that declaring specified jewellery items and insuring them individually under all-risk cover will ensure that one will enjoy insurance coverage if anything happens to the insured items.

An all-risk benefit is where you specify a valuable item such as jewellery and pay a specific premium based on the item’s value so that you are compensated in the event of loss or damage outside the home. An item insured under an all-risk benefit requires that a valuation certificate and proof of ownership are provided.

The Ombud Office says valuable items such as jewellery often elicit a warranty that provides for certain requirements to ensure a valid claim. A jewellery warranty would normally depend on the value of the items covered under the policy exceeding a certain value. An example of such a warranty, per a recent complaint investigated by the Office, would resemble the following:

“It is required, and you warrant that any jewellery with a combined value exceeding R150 000 shall at all times, while not being worn, be kept in a locked safe securely attached to an interior brick or concrete wall or floor of the dwelling or such other place you might be resident at.”

The Ombud’s Office says this issue is particularly relevant at this time of the year when many people will be travelling.

Case studies

In a complaint being investigated by the Office, the complainant’s wife removed her jewellery and placed it in a bag in the overhead locker during a flight to avoid discomfort while sleeping. After arriving home, they discovered the items were missing. The subsequent claim, which was for a value of R785 000, was reduced to R150 000, and after the deduction of the excess, a net amount of R135 000 was paid to the complainant. The claimed amount was reduced because the warranty required the items to be locked in a safe when they were not being worn. The complainant submitted he was not warned about this clause by the representative.

The Office said it has noticed that the National Financial Ombudsman Scheme has also dealt with similar matters.

In one matter, the insured was on holiday when he went to the beach with his wife and baby. He placed his bank card, cash, watch and rings in his wife’s bag for safekeeping. The bag was placed in the baby’s pram while they were at the beach. Hours later, they went to a shopping mall, and when they opened the closed area of the pram, the bag was missing. The claim for the loss was rejected because the applicable policy clause stated:

“It is required, and you warrant that any insured watch, jewellery item, or precious stones worth more than R75 000 shall at all times, whilst not being worn, be kept locked away in a safe permanently attached to the interior of the residence, failing which theft cover shall be limited to that amount for each item and in total.”

In another matter, the insured wore her tennis bracelet to work. While at her desk, she realised that one of the links of the bracelet had broken and that the bracelet might easily fall off. Fearing she might lose the bracelet, she removed it from her wrist, wrapped it in a tissue and placed it in her handbag. During the afternoon, she had to go shopping for medication for one of her children. When she got home and opened her handbag, she realised that the bracelet was missing. Once again, the applicable policy clause stated:

“It is hereby warranted that all jewellery must be secured in an approved safe when not being worn, and loss to such jewellery must be consequent on forcible entry to such safe. It is a condition of the policy that jewellery must be checked every 24 months and that a current valuation certificate is provided at the time of loss.”

The Office points out that warranty clauses are commonly found in insurance policies, and consumers should take note of them. It advises consumers to contact their insurer or broker if they require any clarification or further information on their policy’s terms and conditions.

Original Article - Moonstone

Popular hijacking method making a comeback in South Africa

Mon, 28 Oct 2024 09:33:56 GMT

Vehicle theft and hijackings continue to pose a major threat in South Africa, with alarming statistics showing that the country still grapples with high crime rates in this sector.

Despite a slight decline in motor vehicle thefts compared to 2023, the numbers remain concerning.

Between April and June 2024, a staggering 8,611 incidents of motor vehicle theft were reported, marking a 5.2% decrease from the previous year.

However, this still translates to an average of 96 vehicles stolen each day, indicating that the issue is far from under control.

Sedans, hatchbacks, and coupes have emerged as the most frequently hijacked vehicle types, according to the latest South African Police Service (SAPS) crime statistics.

What is particularly troubling is the resurgence of car thefts and hijackings in mall parking lots, especially targeting high-value vehicles.

Syndicates involved in these crimes are becoming more sophisticated, with both SAPS and private tracking and insurance companies like Tracker and Santam raising concerns about the surge in thefts from shopping centres.

Duma Ngcobo, COO of Tracker, highlights that malls remain prime hotspots for vehicle thefts, with certain days and times presenting a higher risk.

His concerns are echoed by data from insurance provider Santam, which notes that criminals have adapted to new technology, using advanced methods to outwit vehicle security systems.

The rise of keyless vehicles has given thieves more opportunities to exploit vulnerabilities, as they now employ high-tech methods like relay and canvas attacks to hijack cars.

Santam’s Head of Personal Lines, Marius Kemp, warns that car thieves are increasingly employing technology to bypass vehicle security.

He highlights that there has been a notable increase in claims for both theft and hijacking of high-value vehicles, particularly keyless models.

Kemp explains that criminals often work in pairs, using car-jamming techniques where one thief stays close to the vehicle while another intercepts the signal from the keyless remote, effectively unlocking the car without triggering any alarms.

Kemp emphasises the need for motorists to remain vigilant, urging them to take all necessary precautions to safeguard their vehicles and avoid becoming victims.

While vehicle theft and hijackings occur throughout South Africa, the Eastern Cape and Western Cape are currently the regions most affected by them.

Specific car models are repeatedly targeted, with Toyota and Volkswagen vehicles being the most at risk due to their popularity in both South Africa and neighbouring countries.

Specific car models continue to be at high risk, with Toyota and Volkswagen vehicles being particularly vulnerable due to their popularity in both South Africa and neighbouring countries.

The following vehicle models have been identified as high-risk for hijacking in South Africa:

Ford Ranger
Hyundai i20
Nissan NP200
Toyota Corolla Cross
Toyota Corolla
Toyota Etios
Toyota Fortuner (GD6 and D4D)
Toyota Hilux (GD6 and D4D)
Toyota Prado
Toyota Land Cruiser
Toyota RAV 4
VW Polo (especially hatchbacks)

In terms of timing, hijackings and thefts follow predictable patterns.

Fridays between 15h00 and 22h00 are the most common times for hijackings, while vehicle thefts typically peak on Saturdays between 11h00 and 15h00.

This information highlights the importance of staying alert, particularly during these high-risk periods, as criminals often take advantage of drivers’ routines to carry out their crimes.

Despite advancements in vehicle technology, criminals are staying one step ahead, using ever more sophisticated tactics to steal cars.

The resurgence of these hijacking methods in South Africa serves as a stark reminder for drivers to remain vigilant and take every possible precaution to protect their vehicles and their personal safety.

Kemp offered motorists advice on how to stay safe and avoid becoming a target for criminals:

Disable keyless entry , a convenience-focused feature that allows you to open and start a car by having its keyfob near the vehicle instead of manually pressing a button.
Make sure you have Smash and Grab anti-hijacking film on your car windows and keep your windows closed when stationary at traffic lights, etc.
Always park your car off-street in a secure area , ideally in a garage at night, and while out and about during the day, it’s best to park in a highly visible area or in a paid undercover parking lot, where possible.
Use a signal-blocking case such as a Faraday pouch to store your key.
Do a manual check to see if your car doors are locked.
Do not stow valuables in your boot , especially avoid doing so while in plain sight.
A good old-fashioned steering wheel lock is still a highly effective deterrent for thieves.
Always remain alert when stationary at traffic lights or stop streets and while parked waiting to enter or exit your driveway/gate, particularly at night.
Avoid known hijacking hotspots , and find alternative, safer routes to travel.
Make sure you are not being followed and if you suspect you are, don’t drive to your house, and don’t stop the car, drive to a busy area or to the closest police station.
Install a tracking device in your car . Of course, this won’t keep it from getting stolen, but it can help with rapid recovery. But be sure to do your homework as there are many different types of devices, some have much better recovery rates than others.

“Prioritising personal safety by proactively managing your risk to prevent a theft or hijacking from occurring in the first place is of the utmost importance in this heightened risk landscape,” said Kemp.

Original Article - BusinessTech

Criminals are now targeting these cars in South Africa

Mon, 21 Oct 2024 07:38:34 GMT

The latest vehicle crime statistics in South Africa reveal a troubling shift in the targeting of business-owned vehicles, which are now at far greater risk of hijacking compared to privately owned cars.

According to data from Tracker South Africa for the period January to June 2024, hijacking dominates vehicle crime incidents, making up 54% of all such crimes, with the rest being theft.

However, the risk of hijacking is disproportionately higher for business-owned vehicles, which have become prime targets for organized crime syndicates across the country.

This spike in business vehicle hijackings is particularly evident in the Eastern and Western Cape.

In the Eastern Cape, a personal vehicle is four times more likely to be hijacked than stolen, while a business vehicle is nine times more likely to be hijacked.

The Tracker Vehicle Crime Index highlights that business vehicles in the Eastern Cape are 43% more likely to experience vehicle crime compared to personal vehicles.

This trend is driven by the value of goods transported by business vehicles, which range from cargo trucks to courier vans, making them highly lucrative targets for criminals.

The Western Cape presents a similar pattern, where a personal vehicle is almost twice as likely to be hijacked rather than stolen, and business vehicles are four times more likely to be hijacked.

This targeting of business vehicles reflects the broader rise in crimes directed at the road freight industry, with hijackings becoming more frequent and violent.

The Road Freight Association (RFA) has reported that hijacking incidents in the sector have surged dramatically, with well-organized syndicates driving the escalation.

According to the RFA’s operational incident index, the number of hijackings increased by 50% in 2023 compared to the previous year, and the trend has worsened in 2024.

In June alone, nearly 65 hijackings were reported each day, a significant rise from the fewer than 20 incidents per day reported in 2022.

Gavin Kelly, CEO of the RFA, describes the current environment as resembling “mafia-style” attacks on road freight vehicles.

Criminals not only hijack the vehicles but often aim to seize the goods being transported, adding to the profitability of these crimes.

Courier companies, including major players like The Courier Guy, have been forced to implement costly security measures to protect their vehicles and drivers, including employing armed escorts.

These rising security expenses are eating into profit margins, making it difficult for logistics companies to operate sustainably in this increasingly dangerous landscape.

While the focus has shifted to business vehicles, private vehicle owners are by no means exempt from the threat of hijacking.

In fact, hijackings of private vehicles remain a significant concern, particularly in areas like Gauteng, where 51% of all hijackings occur.

Despite the uptick in theft driven by keyless entry relay attacks, hijacking remains a prevalent form of vehicle crime.

Specific car models continue to be at high risk, with Toyota and Volkswagen vehicles being particularly vulnerable due to their popularity in both South Africa and neighbouring countries.

The following vehicle models have been identified as high-risk for hijacking in South Africa:

Ford Ranger
Hyundai i20
Nissan NP200
Toyota Corolla Cross
Toyota Corolla
Toyota Etios
Toyota Fortuner (GD6 and D4D)
Toyota Hilux (GD6 and D4D)
Toyota Prado
Toyota Land Cruiser
Toyota RAV 4
VW Polo (especially hatchbacks)

Geographically, the risk of hijacking is concentrated in several hotspots.

In Gauteng, areas such as Eldorado Park, Ivory Park, and Moroka are notorious for hijacking incidents, particularly as victims pull into their driveways.

KwaZulu-Natal has also seen a rise in hijackings, with Mariannhill and Umlazi standing out as key crime zones.

In the Western Cape, Delft, Nyanga, and Philippi East have emerged as areas with increasing hijacking activity.

Certain times of the week are more dangerous than others, with Fridays between 15:00 and 22:00 being the most perilous for hijackings.

On the other hand, vehicle theft is more likely to occur on Saturdays.

These trends highlight the ongoing and evolving nature of vehicle crime in South Africa, with business vehicles now at the forefront of this criminal wave but private vehicle owners still needing to remain vigilant.

Original Article - Business Tech

7 business insurance myths South African SMEs should debunk

Fri, 11 Oct 2024 09:45:54 GMT

In our current struggling economy, businesses are looking to cut costs wherever they can in order to preserve their profits – or even just to stay in operation. If you’re a business owner, you may also be looking to cut expenses that aren’t the absolute essentials, like salaries and rent. More often than not, one of these perceived “non-essential” expenses is business insurance: according to a KPMG insurance survey from July 2023, only 50% of South African businesses have commercial insurance.

“The irony, though, is that a business may face even more risks than a larger corporation,” says Jaco Erasmus, Director of Insurance at Cornerstone Financial Services Group. “In addition, the financial strain of recovering from an unexpected event can be far more significant if your business has limited financial resources.” We asked Jaco to dispel some other common myths when it comes to business insurance for small or medium-sized businesses.

Myth: I don’t need business insurance.

Truth: Running a business means balancing business growth while also maintaining a healthy cash flow. While business insurance may feel like an unnecessary expense, if you don’t have it, recovering from events such as theft, equipment damage, and liability claims could severely impact your bottom line — so having enough coverage is crucial.

Myth: Business insurance is expensive.

Truth: While a business insurance policy means paying a monthly premium, over the long term this monthly expense is far more manageable than the huge potential financial outlay involved in recovering from an unexpected event. Business insurance can also be highly customised, so cover can be adjusted to suit your budget given your other business expenses.

Myth: I’m covered by home insurance if I work from home.

Truth: If you have a business that operates from your home, your existing home insurance policy may not cover you for specific business risks such as third-party claims or damage to electronic equipment. Home insurance policies also won’t typically cover business interruption in the case of a theft or flood, or a third-party claim should a client injure themselves on your premises.

Myth: General liability covers all the risks your business may face.

Truth: While general liability insurance protects your business against third-party claims, it doesn’t cover risks like professional errors, employee injuries, or cyber-attacks. Additional coverage, such as cyber insurance or professional indemnity insurance, may be necessary where your business may be especially vulnerable to these types of risks.

Myth: All business insurance policies are the same.

Truth: Business insurance is not a generic solution: your coverage needs depend on your industry, the size of your business, and the nature of your operations. While one business may prioritise cyber liability cover, for example, another may need comprehensive business car insurance for their vehicle fleet.

Myth: All insurance providers are the same.

Truth: Insurance providers vary in their offerings, experience, and customer service. When choosing a policy, do your research and compare providers based on coverage options, exclusions, and premiums. A business insurance advisor like Cornerstone Insurance Brokers can help you navigate these choices and find the most suitable coverage for your business – as well as help you understand complex insurance jargon that may be in the policy wording.

Myth: Public liability insurance covers employee injuries.

Truth: Having public liability cover in place covers you for claims from third parties (such as your clients or suppliers) but not for employee-related injuries on your premises. To be covered for these, you’ll need to have worker’s compensation insurance, which South African businesses with employees are required to have.

Navigating the world of business insurance can be daunting. This, plus the perceived expense, can make many owners reluctant to have a business insurance policy in place. But not being covered can be far riskier if something unfortunate does happen to your business and you have to cover the costs to get back on your feet. With this in mind, make sure you’re covered for your specific business, industry, and needs.

Original Article - MSN

How to tell your clients their motor premiums are going up 10x

Tue, 08 Oct 2024 12:15:08 GMT

If you thought non-life motor vehicle underwriters had things easy, then you know little about the dark web, high and low Controller Area Networks (CANs), relay attacks, signal jammers and the inimitable LONSDOR 500. These and other 21st Century motor vehicle crime-related phrases were introduced during an insightful presentation to the 46th Insure-Talk event, held online recently. The audience was treated to a double-header dealing with the impact of hijacking and theft on South African insurers.

Hijacking and theft hotspot

First up, David Chow, Regional Coastal Manager: Engineering and Construction at Bryte Insurance, commented on the evolution of the motor vehicle hijacking and theft claims under the heading ‘From Allen Key to AI’. “Crime continues to increase at an alarming rate,” said Chow, diving into some South African Police Service (SAPS) statistics to stress his point. Over 2022-23, the SAPS recorded 22 702 carjackings with these numbers being skewed towards the KwaZulu-Natal and Gauteng provinces. These provinces are severely impacted due to their proximity to land borders, the favoured ‘export’ route for vehicle crime syndicates.

Chow noted that 5 100 cars were hijacked between January and March 2023, or almost 60 vehicles per day, with an alarming 37 400 vehicles stolen over the 2022-2023 reporting period. He estimated countrywide non-life insurance losses due to motor vehicle hijacking and theft at a staggering R8.5 billion. “SA insurers are being impacted to the tune of R8.5 billion per annum,” he said, explaining why it is so important for insurers to underwrite sustainably.

More than half of this R8.5 billion in insured vehicle value is ‘exported’ over the country’s land borders, destined for chop shops or re-registration elsewhere in Africa. “R4.9 billion worth of vehicles are being taking cross border, [causing significant damage] to insurers and the domestic economy,” Chow said. As for the balance, around R3.9 billion remains in South Africa as potentially re-cloned vehicles with just over half-a-billion ending up in domestic chop shops. Ironically, the cost pressures passed on to consumers and insurers through the OEM parts channel is also driving demand for stolen parts.

Prevention vs cure in the crime context

They say prevention is better than cure; but how does this translate in the world of motor vehicle crime? On the prevention side, the country’s law enforcement agencies need to step up the identification and ‘take-down’ of criminal syndicates. But crime fighters can only do so much, and it will require government to address the country’s poverty and unemployment crisis to make a long-term dent in the problem. Until such time as the number of motor vehicle hijackings and thefts are brought under control, it will be up to the country’s insurers to mitigate this social ill using sustainable underwriting.

The extent of annual losses has already forced local motor insurers to consider and implement a range of policy level underwriting interventions. For greater impact, they need the industry to address the glaring problem of the lamentable insurance penetration across South Africa’s vehicle fleet. The presenter identified poor coverage as a serious impediment, arguing that the near 70% uninsured ratio was simply unsustainable over the longer term. It has become increasingly difficult for insurers to recover damages from uninsured road users, leaving the insureds and their insurers to carry an ever-rising financial burden.

The impact of soaring motor vehicle thefts translates to higher premiums and punitive risk mitigations and policy restrictions, explained Chow. “The underwriting criteria start becoming more aggressive because insurers are trying to control the book to make it run more sustainably,” he said. Insurance brokers are at the coal face of informing their clients of some of these measures, including higher excesses; the need to install multiple tracking devices; and usage related excesses, to name a few.

From stats to ‘best practise’

Having shared the ‘lay of the land’ insofar the intersection of crime and motor insurance sustainability, Chow handed the microphone to Louwrens Liebenberg, Head of Short-term Insurance Operations at the Insurance Crime Bureau (ICB). Liebenberg introduced the ICB as an institution aimed at tackling organised crime that affected the broader insurance industry, with an inevitable focus on motor vehicle crime. He shifted the discussion from crime statistics and underwriting best practises into the criminal underworld, focusing on some of the main techniques being used by criminal syndicates and opportunists to steal motor vehicles.

The easiest way to steal a vehicle remains getting your hands on the key or fob. “We currently see a lot of pick-pocketing cases being reported; the criminal or syndicate members love following ladies while they are doing their shopping; they tail these victims until they get an opportunity to sneak car keys out of purses or handbags and then head into the parking lot where they press these remote until they ‘unlock’ the car they had their eyes on,” Liebenberg said. This is considered an old school technique.

In reality, the introduction of customer-focused technology has forever changed the dynamic for professional car theft syndicates; the days of using coat hangers, hacksaw blades and screwdrivers to force entry and take possession have given way to tech-savvy criminals who exploit digital vulnerabilities in vehicle systems. “In essence, our motor vehicles have become integrated with the Internet of Things (IoT); vehicles are managed by computers and networks that are vulnerable to hacking,” Liebenberg said, before sharing some chilling videos of technology-backed vehicle theft techniques in action.

An exploit of the keyless entry

The first technique shared with the virtual audience involves an exploit of keyless entry, described under the heading ‘total key loss’, though your writer likes the phrase ‘fob compromise’. In the first instance, criminals use a commercially available key fob emulator; they break open the window of the targeted vehicle, lean into the vehicle, disable any intruder sensors and then plug into the On-board Diagnostics (OBD) port underneath the steering wheel. This allows them to use the key fob emulator to re-code a key for the vehicle. Another impressive bit of kit allows the criminals to jam the signals being sent from installed tracking devices as they drive away.

Liebenberg revealed that the jammers being used were often military grade, requiring criminals to keep them cool with ice and / or computer fans during the theft and getaway. “A lot of the devices for defeating vehicle ignitions can be bought online, some being legal to use in South Africa and others downright illegal,” he said. In the latter case, criminal syndicates purchase the tech on the dark web, relying on sellers in countries like Poland and Ukraine. The net effect here is similar the total key loss that a pickpocket victim would suffer.

The next technique is described as a ‘relay attack’. This involves a criminal syndicate, often operating in teams of three, using a device to strengthen the signal from the keyless entry fob. Again, a video was shared to demonstrate this crime: a criminal carrying a backpack containing a signal booster will follow the victim as he or she walk away from the vehicle while an accomplice works at the target vehicle’s door, using a second device to gain entry and start it. “These are the two basic key methods,” Liebenberg explained. “The one is the total key loss, and the other is a relay attack where the signal is boosted, exploiting keyless entry.”

The car theft CAN-CAN, high and low

Alas, it did not end there. The ICB’s expert went on to describe another compromise that involved an external hack of a vehicle’s wireless network to initiate an emergency start event. The exploit involves interacting with the vehicle’s high and low Controller Area Networks (CANs). “If you can hack into the BUS, you can then gain access to that vehicle’s CAN; you do not even have to get inside the vehicle,” Liebenberg said. In the video example, criminals exploited a weakness involving the front left headlight of certain vehicles, gaining access using a device and probe.

“The effects of hijacking and thefts on insurance company policies include increased premiums; fewer vehicles being insured because of unaffordability; increased restrictions; and the requirement to install additional theft protection systems,” concluded Chow. He warned against seeing the insurer as the villain in this context, arguing that these interventions were necessary to balance consumer protection and insurer sustainability.

Writer’s thoughts:

In the days when copper cable theft was rife, your writer figured combatting that crime would be as simple as targeting scrap dealers, cutting distribution. QED? Maybe not. Can you think of any practical, simple solutions to combat vehicle hijackings and thefts?

Original Article - FA News

Rising demand for kidnap and ransom cover amid increasing risks

Thu, 19 Sep 2024 11:11:30 GMT

The uptick in ‘ express kidnappings ’ and hijackings across South Africa has opened the door for non-life insurance brokers to add value to clients and bolster their annual premiums by including kidnap and ransom cover in their portfolios. Your writer spent some time mulling over the opening line for today’s newsletter, fearing it might be labelled insensitive; then again, crime triggers many insurance claims.

Crime: a significant contributor to insured losses

Non-life insurance is designed to respond to on-the-ground risks faced by businesses and households within an economy. Risk mitigation efforts aside, it should protect the insured against losses due to all covered perils, whether from natural catastrophes, manmade disasters or criminal activity. Statistics from the South African Police Service (SAPS) paint a gloomy picture: a 260% increase in kidnappings over the past decade, with an alarming 4 577 cases reported countrywide in the final quarter of 2023. This translates to 51 kidnappings per day over that period, with around two of those being kidnapping for ransom.

There have been several high-profile kidnapping for ransom cases reported in the local media recently. In November 2021, a business family paid a R50 million ransom for the safe release of their sons, who had been kidnapped on the way to school. And in early July, a report on eNCA revealed that around 20 Portuguese butchery owners or staff had been kidnapped since 1 January 2023. The crime is so prevalent that the banking division of the National Financial Ombudsman (NFO) has received complaints related to ‘express kidnappings’ where consumers suffered losses after disclosing confidential banking information under duress.

For the uninformed, an express kidnapping can be thought of as an extended robbery: criminals ‘grab’ a victim and force that individual to transfer cash out of his or her bank accounts, often holding the victim overnight to reset transfer and withdrawal limits. To learn more about the crime, and the insurance options available to your clients, FAnews spoke to Catia Folgore, Product Head: Crisis Management at iTOO Special Risks. Folgore said the product has evolved significantly over the two decades she has been involved in this specialist area.

Growing risk of living in South Africa

“When we first started looking at kidnap and ransom, it was mainly a commercial cover for companies that were sending their employees into high-risk countries; now we offer the product to individuals too,” she said. Today, iTOO offers a corporate solution that allows the employer to specify the employees covered and stipulate areas of operation, or a family policy for small business owners or individuals who travel frequently or (sadly) are simply concerned over the growing risks of living in South Africa. It is common practice for families to take out low-premium, low-limit policies to unlock the incalculable benefit of post-event responders.

There are 20 events covered on the policy including kidnap and ransom and wrongful detention, with an important distinction between the ‘long tail’ kidnappings portrayed in Hollywood blockbusters, where hostages are held for months while a release is negotiated, and the emerging ‘short tail’ or express kidnappings that afflict the South African landscape. “We added express kidnapping cover because it is much needed in South Africa,” Folgore explained. In these cases, criminals typically take the victim to an ATM and force them to withdraw cash, sometimes even transferring funds between accounts to steal the maximum possible amount.

Other lines on the policy include accidental death and disability; medical expenses and assistance following disappearance, hijacking, stalking or threats. The personal lines policy is described as “very comprehensive for the amount of premium paid annually” with commercial insureds able to add business interruption cover too. From a personal lines perspective, the real selling point is access to consultants or responders who assist when a kidnapping or related incident occurs. To this end, iTOO has partnered with an international firm that has 39 years of experience handling over 1500 kidnapping and ransom cases in 80 countries.

Kidnap and ransom pay-outs

Brokers need to be clear about how the policy pays out. Folgore noted that the full amount billed by their third-party responders is covered by the policy, but cash stolen during an express kidnapping, or any ransom paid, is only reimbursed after the event, subject to policy conditions and limits. As for costs, a typical family policy starts from around R15 000,00 annually, with variations based on underwriting factors. “This is not a one-size-fits-all policy; you might have a family of two versus an extended family of 15, or a member who frequently travels into Africa versus one that only travels domestically,” Folgore explained.

Taking out some level of kidnap and ransom cover seems a no-brainer, given the content of the NFO’s recent media release on the topic. Nerosha Maseti, Lead Ombudsman for the Banking Division at the NFO, highlighted the trend in which “criminals force banking customers to disclose their online banking and banking app passwords under threat of violence (duress) after kidnapping and detaining them; once criminals gain access, they can alter account limits and make unauthorised transfers, causing significant financial losses in addition to the trauma of the kidnapping itself.”

The NFO shared a case study in which a complainant lost over R100 000,00 following an express kidnapping. In this instance, the victim bypassed the bank’s crime and fraud mitigations under duress and was subsequently refused a refund when reporting the incident to the bank. Pay attention, dear reader, to the NFO’s conclusion regarding the bank’s liability here: “Given the merits of this matter, there were no legal grounds on which we could hold the bank liable for the complainant’s loss – he was essentially a victim of a crime in which the bank was not involved,” Maseti said. Duress or not, the customer had compromised confidential banking details.

A costly affair

The above sum is small change compared to the full-blown kidnapping and ransom demands that occur periodically. iTOO reports that the lowest ransom they have paid was around R500 000,00 with demands in some of the riskier countries often starting from around USD50 000,00. “We usually quote for a personal lines ransom cover of half-a-million to two million rand,” the expert noted. The cost of third-party resolution experts, fully covered by the policy, can quickly reach thousands of rand, with one recent case costing around R440 000,00 for a six-day-long investigation into a threat incident.

There are checks and balances before a pay-out is processed against an express kidnapping claim. “We rely on our consultants, who are involved from the start; we also collect information from the insured, including bank statements, ATM footage and sworn affidavits,” Folgore said. She admitted that the addition of express kidnapping cover was linked to the spike in this type of crime domestically, and said that iTOO was doing whatever it could to train brokers on the evolving cover, to ensure that commercial and personal lines clients were appropriately covered.

Writer’s thoughts:

Insurance brokers, insurers and underwriting managers are under pressure to respond to the evolving risk landscape. Do you believe kidnap and ransom cover should be a standard offering for every personal lines client rather than a ‘nice to have’ for corporates and high net worth (HNW) families?

Original Article - FA News

Express Kidnapping: When Disclosing Banking Details Leads to Financial Loss

Tue, 17 Sep 2024 13:24:02 GMT

People who are forced to disclose confidential banking information during a kidnapping often have limited recourse, because they are typically held liable for any resulting financial losses.

At the release of the crime statistics for the fourth quarter of the 2023/24 financial year and the first quarter of the 2024/25 financial year late last month, the Minister of Police, Senzo Mchunu, said crime was generally on the increase. Mchunu said crimes that should worry the public the most are murder, rape, hijacking, kidnapping for ransom payments, and extortion.

“We have been reading about kidnappings and extortion cases in the media; 135 cases of kidnapping for ransom were recorded in the first quarter, with Gauteng and KwaZulu-Natal accounting for 81 and 15 cases respectively,” he said.

According to the Statistics SA report, as of the 2022/23 financial year, the total number of kidnapping cases in South Africa reached 15 343. Gauteng had the highest incidences of kidnapping, with 7 818 reported cases, while KwaZulu-Natal had 3 081 cases in the same period. This sudden increase is associated with the rising levels of organised violent crime in the country.

The Institute for Security Studies (ISS) stated that kidnappings reported to the police have almost quadrupled (260%) over the past decade. The South African Police Service’s crime statistics for the third quarter of 2023 (October to December 2023) showed that kidnappings had increased by 11% year-on-year to 4 577 cases over the period – working out to roughly 51 kidnappings a day in South Africa.

In a recent interview with Newzroom Afrika , Lizette Lancaster, the manager of the South African Crime and Justice Information and Analysis Hub at ISS’s Justice and Violence Prevention Programme, highlighted the alarming rise in kidnapping syndicates:

According to Lancaster, these groups have rapidly evolved since the onset of the Covid-19 pandemic, becoming more organised and targeting a wide range of individuals.

“These kidnapping syndicates seem to be prolific,” Lancaster stated. “They seem to target various types of individuals, and the increase has been specifically steep since the Covid years, which shows that they’ve become very organised in a very short period of time.”

Lancaster pointed out that many cases go unreported, making it difficult to grasp the scope of the issue.

“We don’t always know who gets targeted, because not all cases are reported to the police,” she explained. However, data from late 2023 paints a stark picture: “Out of that 50 a day that we saw between October and December last year, only around two of that 50 a day are for kidnapping for ransom or extortion, the high-profile cases that make it into the news where high-value people are targeted by what seems to be very sophisticated syndicates.”

Most kidnappings, Lancaster clarified, are associated with robberies and carjackings, often involving attempts to force victims to withdraw money via banking apps or bank cards. “The motive is actually robbery, often trying to withdraw cash from your banking apps and your bank cards. And those are known as express kidnappings; that’s over 60% of these types of kidnappings.”

Sexual offences and human trafficking-related kidnappings make up a smaller proportion of cases. Lancaster said, “But, of course, not all cases are reported to the police, and this is important – the number, especially of ransom kidnappings and extortion kidnappings, may be far more than what we know.”

A trend has also emerged involving foreign nationals running cash-based businesses in local communities.

“What we see are often the kidnappings of what seems to be foreign nationals running cash shops in local communities targeted by extortion groups. When they are not willing to pay protection money, they become easy targets,” Lancaster explained. “Often, they are made examples of or are forced to pay extortion money. If they don’t, they get kidnapped and held for ransom.”

Lancaster also touched on the growing role of transnational syndicates in these crimes, often targeting businesspeople with foreign roots. “We’ve seen transnational syndicates in operation, targeting businesspeople that might have foreign roots. But some are South African businesspeople who operate formal businesses and, in some cases, transnationally,” she noted.

And she said, they’ve seen South Africans being kidnapped, particularly the express kidnappings, for their bank cards and phone apps.

“Those are very real threats to ordinary South Africans.”

Liability for loss

In response to reports of a rise in kidnappings targeting entrepreneurs, the National Financial Ombud Scheme (NFO) confirmed it has received complaints where victims were forced to disclose confidential banking information under duress.

Nerosha Maseti, Lead Ombudsman of the NFO’s Banking Division, explained that this issue was discussed at the NFO’s recent annual banking workshop.

“The discussion also explored possible and available measures to help banking consumers safeguard their financial information and mitigate financial losses,” said Maseti.

The NFO suggested that fraudsters are increasingly resorting to kidnappings as banks have strengthened security on online platforms, making it harder to obtain customers’ banking information. Maseti noted that criminals often force victims to reveal their online banking passwords during kidnappings.

“Once criminals gain access to these platforms, they can alter account limits and make unauthorised transfers leading to significant financial losses in addition to the trauma of the kidnapping itself,” she explained.

The NFO investigates consumer complaints against banks and financial service providers.

“If, after investigation, it is found that the bank could have prevented or mitigated the customer’s losses but failed to do so, the NFO’s banking division has the power to recommend to the bank involved to refund the portion of the customer’s losses that could have been prevented but for the bank’s negligence,” she said.

As an example, the NFO cited a recent case where a complainant was kidnapped and forced to disclose their online banking credentials, resulting in unauthorised transactions amounting to R103 092.

Although the bank’s fraud-monitoring system flagged the suspicious activity and contacted the victim, they confirmed the transactions under duress. After their release, the complainant sought a refund, but the bank denied the claim, saying the complainant had disclosed confidential information.

The NFO investigated the case, examining the bank’s terms and conditions, which state that customers are liable for transactions made before the bank is notified of unauthorised activity.

“Unfortunately, all the funds transferred out of the complainant’s accounts had already been utilised prior to the bank being made aware of the incident. Therefore, the bank was not found negligent in mitigating the complainant’s loss,” said Maseti.

Given the circumstances, the NFO found no legal grounds to hold the bank liable.

“The complainant was essentially a victim of a crime in which the bank was not involved. However, the bank agreed to refund a portion of the loss as a gesture of goodwill,” Maseti added.

Although customers are typically liable for losses before notifying the bank, liability shifts to the bank once the compromise is reported. In such cases, banks are expected to mitigate further losses.

The NFO stated that each case is assessed individually, and banks may offer partial refunds based on a customer’s vulnerability and personal circumstances. However, confirming whether confidential information was disclosed under duress remains a complex challenge for banks.

The NFO provided these tips for prevention and mitigation. The tips are similar to those for any hijacking risks.

Be cautious when posting online. Avoid posting sensitive financial information or sudden changes on social media. It is extremely important to be vigilant about what information you share on social media and the perceptions you create about yourself, your family, and your friends. Avoid posting about a sudden influx of funds, as this can make you a target for criminals.
Do not draw unwanted attention to yourself. Wearing expensive jewellery, carrying high-end branded items, or carrying other valuables in public may attract unwanted attention.
Vary your daily routine as often as possible. Diversify your daily activities to reduce predictability. Criminals may monitor predictable routines well before the actual crime is perpetrated to ensure that a person is vulnerable to criminal targeting.
Consult your bank. Discuss the measures your bank may offer to help mitigate potential losses if you become a victim of any type of banking fraud. Many banks provide options to tailor your online banking and app experience, including limiting your exposure and risk.
Consider investment options. Use accounts with restricted access to limit potential losses. In some instances, investing in a notice account may reduce access to your funds, thereby limiting your overall loss.
Consider insurance. Check whether your bank offers duress insurance or trauma counselling services.

Original Article - Moonstone

Risk-adequate the new buzzword in global re/insurance

Mon, 16 Sep 2024 07:55:39 GMT

The disciplines of risk management, mitigation and transfer continue to evolve as insurers and reinsurers refine their underwriting practices to accommodate the potential mega-loss events arising from themes such as climate change and cyber liability. As insurance brokers break news about fire and flood exclusions to their commercial and personal lines clients, global reinsurers are coining new phrases to explain their risk approach.

The emergence of risk-adequate

One of the world’s largest reinsurers recently issued a media release under the title, ‘Volatile loss trends, complex risks: Munich Re to focus on risk-adequate conditions’. What? Your writer, who had not previously encountered this phrasing in an insurance context, wasted a few minutes in a vain attempt to find a dictionary definition online. His best guess is that by ‘risk-adequate conditions’ the reinsurer means establishing reinsurance contract conditions that are appropriately aligned with the actual level of risk on cover. Put somewhat differently, the reinsurer is seeking the underwriting Holy Grail of optimal balance between price; coverage; and terms.

In its message to the ‘Rendez-Vous de Septembre’ reinsurance industry event taking place in Monte Carlo from 7-11 September 2024, Munich Re said that the reinsurance market has achieved a sensible balance in an environment characterised by high demand. Thomas Blunck, Member of the Board of Management, Munich Re Group, observed that “considerable uncertainty remained” in the global reinsurance market. Aside from high claims inflation across a number of segments, the board member was concerned over “significant downside risks hanging over the overall [global] economic environment.”

An indispensable component of insurance

Reinsurance is an indispensable component of the South African insurance market, enabling insurers to manage large risks; stabilise their financial performance; and enhance their capacity to underwrite new policies, even in the face of significant claims from natural disasters and other large-loss events. It is only thanks to reinsurance contracts being in place that the likes of Santam, the country’s largest non-life insurer, can sustainably indemnify policyholders against the more frequent and more severe flood and storm events affecting parts of the Eastern Cape; KwaZulu-Natal; and the Western Cape of late.

Santam’s 2024 Interim Report illustrates the scale of these natural catastrophes, reporting R607 million in total losses, net of reinsurance, from three loss events that occurred between January and June 2024. This compares to weather-related catastrophe losses of R150 million in the comparable prior year period. Other significant losses with net exposure exceeding R10 million per event came in at R98 million for the latest half-year, down from R358 million in 2023. Reinsurers do not sit idly by as the risk landscape changes; the respond by hiking prices and re-thinking coverage.

Exclusions and limitations abound

As Santam mentioned early on in its 2023 Integrated Report: “the cost of reinsurance increased substantially following the significant losses experienced globally and in the South African market since 2020”. In addition, local insurers had no choice but to respond to global reinsurer demands with respect to limiting or restricting their ongoing exposures to systemic risks from grid failure and pandemic. The market remains tricky as we enter the final quarter of 2024. In the aforementioned media release, Munich Re conceded that the reinsurance market presented both challenges and opportunities.

On the opportunity side, the sector’s growth outlook seems baked in. “Following pronounced growth in recent years, the global reinsurance market is set to grow by 2-3%, adjusted for inflation, over the next three years,” Munich Re wrote. “That puts the reinsurance sector virtually neck-and-neck with the primary insurance sector.” Current expectations are for slightly stronger growth in Asia-Pacific and Latin America, and slightly weaker growth in Europe and North America. Africa did not crack a mention.

The challenge, it seems, is for global reinsurers to maintain the solid earnings achieved in 2023 over the coming three-year period. “Adequate earnings are crucial for the reinsurance sector, which was unable to earn the cost of capital in four out of the last seven years,” said Blunck, reminding stakeholders of the need to achieve risk-adequate rates to accommodate rising volatility and risk exposures. The reinsurer highlighted three topics that necessitate specialist risk expertise and a disciplined approach to underwriting.

NATCAT costing USD100 billion, annually

First on the list was the perennial favourite ‘natural catastrophes and climate change’. Citing its own data, Munich Re noted an upward trend in insured losses that was closely linked to increasingly exposed assets. Who would have guessed, right? Annual natural catastrophe related losses now often surpass USD100 billion; but the higher loss trend is being driven by non-peak perils such as severe thunderstorms with hail; tornadoes; flooding; and forest fires. “The scientific community believes that climate change has an impact, and in some cases, a significant one, on the number and severity of these natural hazards,” Munich Re wrote.

The second topic focused on claims inflation in the casualty business. “Due to the long-tail nature of the business, insufficient rates can impact profitability for several years,” Munich Re said. An analysis conducted by the reinsurer has revealed many years in which rate development has not kept pace with claims inflation in the US, an experience that will no doubt worsen as the world’s largest economy struggles to throw its latest multi-year dalliance with high inflation and interest rates.

And third, cyber, which your writer acknowledged early on in the context of cyber liability. “The global cyber insurance market continues to gain importance and will experience substantial growth,” wrote Munich Re. “As a leading cyber re/insurer, we plan to continue providing significant capacity to match that growth over the coming years with commensurate prices, terms and conditions.” In plain English, dear reader, your insurer will likely soon be informing your of new exclusions for what their reinsurance partners call ‘uninsurable systemic risks’. And that means you can soon add cyber war to grid failure and pandemic as perils that are impossible to insure against.

Reinsurers are not holding any punches

Munich Re Group Board member, Stefan Golling, was quite direct. He said that areas like natural catastrophe, casualty and cyber were symbolic of a reinsurer’s role, but warned that a sustainability driven reinsurer “would not hesitate to discontinue business that does not meet technical criteria for sustainable profitability.”

Writer’s thoughts:

Insurers and reinsurers are engaged in a constant trade-off between coverage and sustainability. Unfortunately, sustainability focused actions such as higher premiums and a growing list of exclusions leave many insureds questioning the worth of their insurance contracts.

Original Article - FA NEWS

Recent NFO Rulings Highlight Important Obligations of Insurance Clients

Thu, 12 Sep 2024 12:18:12 GMT

Recent NFO Rulings Highlight Important Obligations of Insurance Clients

The Non-life Insurance Division of the National Financial Ombud Scheme is sometimes required to make rulings on complaints brought by insured consumers who have had claims rejected by their insurers. While no two scenarios are exactly the same, enough similarities are found for certain universally applicable guidelines to be drawn up. Following these guidelines can make for frictionless claims, a far greater likelihood of a claim being paid out, and much less chance of the claim culminating in a complaint to the NFO.

Based on recent rulings, following the guidelines outlined below can be strongly recommended.

Know your policy (exclusions of cover) [M480.22]

Exclusions are specific behaviours or circumstances which, if found to exist during an incident from which a claim arises, entitle the insurer to reject that claim. One recent example concerns a motorist who was found to be driving faster than the prescribed speed limit at the time of the accident.

More importantly, the driver was found to be travelling sufficiently fast to trigger a clause in their insurance policy regarding driving at a speed more than a certain amount faster than the relevant speed limit. The insurer relied on this clause and the facts of the case (including speed data supplied by a tracker fitter to the claimant’s vehicle) in rejecting the claim.

The claimant in turn contended that they had only accelerated to such a speed to avoid an imminent collision. However, on consideration of the facts of the case (including the road layout at the accident location and speed data prior to the accident), it was clear that this version of events was not supported.

Two lessons emerge from this Ruling:

The importance of reading policy documents and understanding how any specified exclusions can impact the validity of a claim.
Secondly, it’s essential that insurance clients tell the truth when making a claim – being found to have done otherwise will undermine any claim and may lead to the insurer relying on misrepresentation as another reason to decline a claim.

If in doubt, ask – ambiguous policy terms [T77.23]

As is the case with many legal documents, the intended meaning and import of words and phrases may not be apparent on a first reading. Perceived ambiguity can lead to misunderstandings that, all too often, can result in complaints being made to the NFO.

In a case on which a ruling was recently made, the validity of the claim (which had been rejected by the insurer) under a household contents policy rested not on the material facts of the case (which were not in dispute), but on the definition of certain terms used in the policy.

The insured submitted a claim for theft, with the alleged crime taking place while they were temporarily absent from their home. There was no evidence of a forced entry or exit, and the insurer argued that they did not have to pay the claim, as the policy stated that in the case of unoccupied premises, such evidence must be present for the claim to be upheld.

Instead, the challenge was to determine the meaning of ‘unoccupied’ as it was used in the policy. There was no question that the residents were not at the property at the time of the burglary. However, they were only absent for a short period.

Ultimately, it was determined that, as per the policy wording and its intended meaning, the premises were unoccupied, and given that there was no sign of forcible entry or exit, the claim could be rejected by the insurer.

Lesson from this Ruling: If you are unsure about the meaning of any of the words or phrases used in your insurance policy – especially in the exclusion clauses – ask your insurer or broker to explain them.

Be sure you understand who is insured – [A191]

In the case of a claim for damage to a motor vehicle resulting from a crash, it was found that the incident driver was not the policy holder but one of their employees, whom they had authorised to drive the vehicle. It was further found that the incident driver had exceeded the speed limit at the time of the accident.

As per the exclusion clauses in the policy, this fact (the speed) would make any claim invalid. However, the insured argued that as they were not themselves driving the vehicle, this exclusion did not apply, and the claim should be honoured.

The Ruling made by the Non-life Insurance Division of the NFO was based on a finding that the policy was equally binding on the incident driver as on the policy holder, and the incident driver was for all intents and purposes an insured in terms of the policy, and therefore the exclusion clause applied.

Lesson from this Ruling: It’s vital to understand all aspects of your insurance policy, and in particular, to whom each exclusion clause applies.

What really matters – the importance of materiality [C723]

A claim arising from a fatal road traffic accident was rejected by the insurer on grounds of excessive speed, as well as other reasons that the Ruling by the Non-life Insurance Division found not to be applicable.

While exclusion clauses can provide grounds for rejecting claims, there must also be materiality. The facts that the insurer relies on in triggering the exclusion clause must be material to the claim – that is, they must be relevant. Simply proving that, for example, the claimant exceeded the speed limit may not be sufficient grounds to justify invoking a rejection clause.

Lesson from this Ruling: The mere existence of an exclusion clause does not mean that it always applies. Rather, the facts of the case must justify the triggering of the clause.

Contract terms must be clear and unequivocal [M1243.23]

In a case involving the theft of a vehicle from a premises, with the theft being of a customer’s vehicle and the theft being achieved under false pretences, a Ruling was made that the insurer was not justified in rejecting the claim.

The insurer had sought to rely on exclusion clauses in the contract. However, there was some uncertainty as to the meaning of certain exclusion clauses. In contrast, the language regarding the cover was clear and unambiguous, so this was determined to override the supposed exclusions, and the insured was determined to have cover for the specific loss and circumstances that were the subject of the complaint.

Lessons from this Ruling: Insurance policies – like all contracts – must be written in clear and unequivocal terms for the benefit of both the insured and the insurer. This will ensure that both parties know exactly where they stand in the event that a claim is made, and there is far less likelihood of a complaint arising.

Conclusion

The examples described in this press release highlight the importance of reading and understanding the insurance policy and exclusion clauses. This has benefits for both parties, and will lead to fairer and more equitable outcomes all round.

Original Article - NFO

Key Risks of Non-Compliance

Thu, 12 Sep 2024 10:42:11 GMT

Beating kidnappers who want to empty your bank account

Thu, 08 Aug 2024 08:16:59 GMT

In many of these incidents, criminals kidnap and threaten people to get them to withdraw the maximum amount of money they can from their bank accounts or to transfer funds via their mobile banking apps.

Creating decoy apps, using a phone without banking apps in public, or keeping as much of your money as possible in an account with a notice period are some of the methods to protect against kidnappers forcing you to empty your bank account.

Insurers and private security companies have warned about the rise in so-called “express” kidnappings in the past year.

The latter also often allows users to increase their daily withdrawal and transaction limits, potentially increasing how much money the kidnappers can steal.

According to Fidelity ADT CEO Wahl Bartmann, South Africans should be vigilant about their personal safety at all times and take the following steps to avoid falling victim to kidnappers.

Don’t be flashy with expensive jewellery and other items in public
Vary your routines or periodically change travel routes
Don’t engage with strangers
Be aware of your surroundings at all times, especially when leaving and arriving at home
Secure your home, particularly the perimeter, with electric fencing, proper lighting and CCTV
If threatened, attract attention

If you are kidnapped, private security companies and South Africa’s major banks advise cooperation with the kidnappers and their demands to provide the best chance of escaping with your life.

Many kidnappers are hardened criminals who would not hesitate to harm or kill their victims.

The issue has led to a bit of a conundrum for banks, who cannot compensate victims for any money paid out of or withdrawn from their bank accounts while under duress.

Former Banking Services Ombud Reana Steyn previously told consumer journalist Wendy Knowler that banks cannot be blamed for the crime or losses as the kidnapping and robbery took place outside their premises.

Some banks also keep kidnapped victims’ accounts open even if family members or friends make them aware that the account has been compromised, arguing that blocking the accounts or transactions would only endanger the victim’s life.

Another problem is that malicious customers could exploit banks’ willingness to pay back victims’ money by staging kidnappings.

They could pretend that they lost money when it was actually withdrawn by the victim themselves, used to pay for products or services they wanted, or channelled back to them through a collaborator.

Leaving your mobile banking phone at home

While hiding certain bank accounts within your banking app is an option to limit exposure, seasoned kidnappers could become increasingly familiar with the various settings of banking apps and simply force users to unhide the accounts.

Some users have suggested keeping your phone with your mobile banking app at home and using a secondary device without access to your bank account while going out in public.

That would leave you with two payment options: your bank card or a digital wallet-equipped smartwatch.

If you use a card, the criminals might still be able to force you to make transactions or buy certain items they want.

They could also get you to withdraw money or perform various more complex actions on your bank account at an ATM, such as increasing your daily limits or making an electronic funds transfer.

While a smartwatch could also be used for making payments, it does not support withdrawals or EFTs at ATMs or provide access to increasing daily limits.

Apple Pay, Garmin Pay, Fitbit Pay, Google Wallet, Samsung Pay, and SwatchPay are able to make up to a specified number of transactions while disconnected from the Internet.

Put extra money into accounts with limited access

There is another option for those who prefer to keep their phone with banking account access on hand.

Bank Zero has recommended that customers only keep the funds they need for their day-to-day requirements in their transactional bank accounts and open a Notice Deposit account for the rest of the money.

A Notice Deposit requires a customer to request funds a certain number of days before they can get them.

These accounts can have varying notice periods — typically starting from seven days and going up to 60 days.

The additional benefit of this option is that you will earn interest on funds kept in the Notice Deposit account.

If you urgently require access to more money, these accounts allow for an “early breakage” for a fee, but you will still only be able to get the funds the next day.

Notify loved ones without alerting kidnappers

Another way to reduce how much money kidnappers can take from your account is to limit how long they can keep you around before encountering trouble from law enforcement.

The South African Banking Risk Information Centre has also advised users to keep their location services on their smartphone enabled and to share their real-time location with trusted contacts when travelling alone.

That could also make it easier and faster for the police or private security to track you and the kidnappers down.

Another tool that can assist with alerting loved ones about your situation without endangering your life is Thinkst Canary’s decoy apps.

Canary has developed fake apps using its Canarytokens that mimic the look of legitimate apps’ icons but silently send an alert to a supplied email address when the fake app is opened.

There would be no way for the criminals to tell which of the apps is the decoy.

It currently offers 40 fake apps, including Absa, Capitec, FNB, Nedbank, Old Mutual, and Standard Bank, as well as digital payment apps Apple Wallet, Google Wallet, SnapScan, and Zapper.

MyBroadband tested the system with a decoy app for FNB and upon opening it, we received an email in our chosen inbox alerting that someone tried to access the app.

Users can hide their actual mobile banking apps in a hidden folder while putting the fake app up on their home page.

Original Article - My Broadband

Tips to protect yourself from remote jammers

Wed, 17 Jul 2024 10:46:26 GMT

Anyone who has fallen victim to remote jamming will know that sinking feeling when you open your boot and there’s nothing there – no laptop, no handbag, no gym shoes. You look around, dumbfounded. My car was locked. How did this happen? Remote jamming is nothing new but it’s not getting old for criminals either. In fact, it is on the increase.

Remote jamming is when thieves jam the signal from the immobiliser to the car, so it doesn’t lock even when the owner presses the ‘lock’ button. A remote jammer is any device that deliberately blocks, jams or interferes with authorised wireless communications. Jamming can interfere with various types of wireless equipment, including the alarm panel, cellphone communication, detectors, fleet tracking systems and radio reporting to a control room.

It goes well beyond your and my car in a shopping centre parking area. These criminals are not only committing theft out of motor vehicles but also theft of motor vehicles, hijacking of vehicles/trucks and cargo and house and business robberies by using remote jamming. This well-practiced tactic is especially alive and well in public places because, sadly, motorists continue to be vulnerable to it.

Remote jamming is prevalent in parking areas at shopping malls and petrol stations, and that the thieves are often so brazen they don’t even leave the area after hitting their mark but continue to target others. These criminals rely on the ability to blend in while people go about their business of parking and shopping and not checking that their cars are locked, or observing anything around them.While security guards and car guards are on high alert for these criminals, remember it is effortless for the thieves to approach a car, open it, pop the boot, take what they want and walk off - they’re not breaking into a car; they aren’t even concerned about what car security devices or vehicle anti-theft systems you may have.

Fidelity provides these 7 tips to avoid falling victim to remote jammers:

Being s ecurity conscious should be a habit not an after-thought. So, as thieves become increasingly resourceful, it is up to vehicle owners to ensure their vehicle and belongings remain safe.

Original Article - Fidelity ADT (striata.com)

Popular housebreaking method making a comeback in South Africa

Wed, 17 Jul 2024 10:42:56 GMT

A security firm has warned the public that there has been an increase in break-ins where criminals have gained access through the roofs of buildings in South Africa.

Fidelity Services Group noted that there has been a spate of robberies in areas in Germiston and Klerksdorp CBD recently, where criminals have been breaking through roofs.

Charnel Hattingh, Group Head of Marketing & Communications at Fidelity ADT, said in many of these incidents, the alarm panel or antenna of the alarm was accessed through the roof and, in some instances, installed in the roof.

“The criminals then break the panel or antenna, which prevents alarm signals from reaching the control room,” she explained.

Criminals have realised houses with tile roofs are easy targets.

Roof tiles can be quickly opened, and access into the house by breaking through the ceiling boards is simple.

Many roofs have become the weakest point of entry, and burglars are taking advantage of this at both business and residential premises.

After gaining access to the inside of the roof, burglars frequently locate the alarm system by following cables in the roof and then proceed to rip out or cut all cables to disable the alarm system.

According to another security firm, in some cases, burglars first break into a bathroom, where there are usually no alarm sensors, and then break into the roof from there.

Criminals gaining access to buildings and properties through the roof is nothing new, but the spike in incidents warrants a warning to those who need to access their security.

Hattingh said outdoor detection beams can be strategically placed around your property, which will trigger the alarm before a criminal has the chance to get to the actual building.

“Another alternative worth looking at is microwave Passive Infra-Red detectors, which are specifically designed for very hot areas – such as a roof. Normal infra-red detectors are not as effective when installed in extremely hot areas,” she said.

“It is important that, like any system, your security is checked and maintained regularly. Please take a walk around your property and look for possible access points to your property and roof.

“If you suspect there are vulnerable areas, call in a security expert to help you find solutions,” she added.

According to the SAPS’ data, burglaries at residential premises decreased by 4.4% year-on-year. However, compared to the second quarter of 2023, burglaries at residential premises increased by 6.8%.

Although robberies with aggravated circumstances at houses increased by only 1.7% year over year, they were up almost 5.2% from the second quarter.

This shows an increasing trend for both break-ins and robberies in South Africa.

While similar in nature (criminal trespassing and theft), burglaries and robberies are differentiated by the presence of the victim.

Burglaries occur when a thief enters a home intending to steal while the victim is absent, while robberies happen when the victim is present and threatened during the theft.

Despite decreasing year-on-year, burglaries still far outstrip robberies in South Africa in number, and – after drug-related crime and assault – is the biggest crime subcategory in the country.

Regarding burglaries, almost every province in South Africa is represented in the ‘top 11 worst areas’ list, and it is Plessislaer in Kwa-Zulu Natal (KZN) which has drawn the most cases of break-ins, followed by another KZN suburb (Mountain Rise) in second and Cambridge in the Eastern Cape is in third.

Looking at robberies, Gauteng has the highest number of home robberies (35%).

However, this is followed by KZN (23.2%), and its areas take up half of the places in the ‘top 11 worst areas’ list, with Plessislaer in KZN ranking again as the worst area.

Original Article - BusinessTech

Insurance: A Force For Good

Fri, 12 Jul 2024 09:17:45 GMT

Insurance has traditionally been known as a safety net for when things go wrong. But with so much data at insurers’ disposal and ever-increasing data analysis capabilities, insurers can also help clients prevent a bad situation.

Insurance, like new tyres, visits to the dentist, and kale, is typically seen as a grudge purchase. And, like kale, it’s something people spend money on, hoping they never have to use it. What the average person doesn’t see, however, is the vast amount of data science that goes into the insurance business behind the scenes. It puts insurers in a position to enrich clients’ lives in ways that go far beyond a payout in the event they suffer a tragedy – insurers can empower clients to lower the chances of tragedy striking in the first place.

“In the traditional insurance transaction, the value of the product sold is only really realised at claim stage. Claim events are tough for the customer and the insurer as it’s a lose-lose situation,” says Chris Charlton, MD of Consort Technical Underwriters. “The cost of a claim hits both the customer and the insurer. Insurers need to start positioning themselves to provide value to the customer prior to the claim event. Risk management is often touted as the method to reduce the claim impact for the insurer but it could also be utilised to bring value to the client.”

A step ahead

Data has been one of the biggest trends to emerge in recent years, thanks to advances in digital technology. For many industries, the fairly sudden influx of data points is as perplexing as it is exciting. Like the growing collection of glass jars in the back of a kitchen cupboard, data is collected and stored, everyone knows it will be useful, but no one is quite sure what to use it for.

The insurance industry doesn’t have that conundrum. Insurers were in the business of data analysis long before the rest of the world realised its value. What’s more, insurance data is incredibly broad, ranging from personalised insights (say, your smartwatch tracking your heart rate and sending the information to your health insurer) to global phenomena, such as climate change. New data sources are quickly assimilated if deemed to be credible and the information they provide put to good use in innovative ways.

Indwe, for example, is using geolocation data. “We have been investigating and applying geolocation data for some time now and have used it successfully on our larger property clients but also assisting in the event of formulating accurate assessments of clients exposed to specific catastrophes such as fire or flood,” says Chief Executive Officer, Peter Olyott.

Meanwhile, Jacques Pienaar, Head of Commercial Underwriting at King Price Insurance, shares how the company is using data-driven innovation in the agriculture sector: “We’ve developed a motor rating tool specifically for our agri book, which looks at the real risks that farm vehicles are exposed to. We’re the only insurer in the sector that has partnered with Map Scientific Services to help farmers benefit from data insights related to fires. In terms of livestock management, we’ve partnered with VeePlan – a network of 300 vets that inputs data on every sickness in an area – and we’ve also partnered with IDScan, which enables farmers to scan the unique nose-prints of their cattle via a phone app into a database to enhance the traceability of stolen livestock.”

These are just a snapshot of the ways insurance companies use data to manage risk. But risk management has broader implications beyond being good for business. The data that insurers have at their disposal can also help enrich clients’ lives. Take, for instance, a routine medical for a life policy – picking up that a client has high blood pressure might affect their policy underwriting, but more importantly, it could save their life.

Similarly, when clients’ house insurance premiums are higher because they live in a flood-prone area, that could be the warning they needed to be proactive about protecting their home or perhaps even moving to a lower-risk area. And vehicle telematics that monitors a client’s driving behaviour can help them behave more safely on the roads.

But is it the role of the insurer to protect clients from their own decisions?

Power and responsibility

“The responsibility of insurers to use their knowledge and powers for good cannot be overstated,” says Kali Bagary, CEO of The Data Company. “With great access to data comes great responsibility, and we believe that insurers should leverage this power to positively influence the lives of their clients and the communities they serve. By proactively identifying and addressing potential risks, insurers can help clients avoid the need to file claims altogether, ultimately leading to better outcomes for all parties involved.”

Charlton has a similar view. “All companies should feel some responsibility to use their knowledge and power for good,” he says. “The private sector has the opportunity and resources to effect positive change – even more so in a country where the government is not quite there to provide for its people. Insurers, in particular, are well positioned to effect positive change, especially as the ability to gather more granular data improves. Insurers can identify trends and potential adversities much earlier than before. With this potential foresight, the weight of responsibility becomes heavy. The upside for insurers is that, as insights and trends are actioned to the benefit of their customer base, the goodwill capital of the insurer grows and loyalty and trust towards the insurer is fostered.”

Robert Attwell, CEO of Discovery Insure, notes that South Africa faces its own set of unique challenges over and above the global risks highlighted in the World Economic Forum’s 2023 Global Risk Report, in which rising cost of living, natural disasters and extreme weather events top the list.

“In South Africa, over and above these global-wide risks, consumers and insurers are also battling with load shedding, potholes and other country-specific risks,” he observes. “The South African Insurance Association’s 2023 annual review report identified fire, localised flooding and potential national grid and water systems failure as critical systemic risks facing the country. This is in addition to natural disasters and cyber risks that other economies are also worried about. The Association and the industry are clear that while it might be commercially tempting to exclude these risks, it may not be in the best interest of the country. South Africa already has a wide protection gap, with the Automobile Association of South Africa (AA) estimating that 65-70% of the registered vehicles on the country’s roads are driven without any insurance.”

Attwell also believes that the insurance industry has a responsibility to use the resources at its disposal to help people: “Right now, there’s a lot that our customers are experiencing. I think we need to ask ourselves more often as the industry, ‘what can we do better?’”

Good for business

Of course, the strategy also needs to make business sense. Olyott believes it does. “Initially, implementing a risk management model strategy could have an adverse effect on acquisition and retention costs but the longer-term view is that it will reduce claims costs,” says Olyott. “If the risk management model is effective, claims costs will reduce as the insurer will have early intervention opportunities as well as the ability to build trust and relevance with its customer base.”

That concept of a relationship based on trust is key. And demonstrating real value for what may feel like a grudge payment goes a long way towards cultivating it. “Proactive engagement with customers not only fosters loyalty but also builds a relationship of trust between insurers and their clients,” says Bagary. “By demonstrating a commitment to actively safeguarding their interests and providing value beyond the traditional scope of insurance coverage, insurers can earn the trust and confidence of their customers. Transparency, communication, and personalised support are key pillars in establishing and maintaining trust, ensuring that clients feel empowered and supported in their financial decisions.”

One way the industry is leveraging data to enhance the customer experience is through usage-based insurance. “Usage-based insurance is a growing global trend,” says Pienaar. “People don’t want to pay full premiums for assets that are used infrequently – and rightly so. In South Africa, a growing number of companies are bringing usage-based products to market, basing car premiums on the number of kilometres that clients drive per month, the value of their cars and their personal risk profiles. And this is where technology is playing an increasingly important role. For example, the pay-as-you-drive product that King Price developed when car usage was so much less than normal during the Covid lockdown used car odometer photo uploads which we pushed through image recognition algorithms to confirm the kilometres travelled, as well as the authenticity of the photos.”

Usage-based insurance is also extending into areas like agriculture, he adds, with the business seeing a steady uptake of its “pay as you farm” agri insurance product. “It offers farmers comprehensive cover for their agri vehicles all year round, linked to an annual rebate based on the time that the vehicles are actually used,” Pienaar explains. “While the product was designed to help farmers save on their insurance premiums, lower their capital risk and maximise their profits, we’re also enabling precision farming, in terms of which farmers are relying more and more on data collected from their farm vehicles. Yield per hectare insights from a harvester, for example, determine the next season’s seed requirements and optimise fertiliser usage during the growth process.”

Influential insurers

You’re a lot less likely to act on information when it comes from a source you’re already sceptical of, but if you have a good relationship with someone, you’ll be more inclined to listen to what they have to say. Similarly, if insurers are to share insights that can enhance the customer’s life, the customer must be willing to accept those insights and able to recognise the value they add. As with any relationship, that takes time.

“Customers’ loyalty and trust is gained over the long term, once they realise and subscribe to the value proposition,” says Charlton. “It will be some time before the trust can be measured following the implementation of a more risk management focussed approach. Again, if value can be shown for traditional insurance spend, it should equate to trust and loyalty.”

However, if they get it right, insurers can draw on the data at their disposal to influence customers in numerous positive ways. This can lead to a mutually beneficial partnership where the client and insurer are working together to take proactive steps that lower the client’s risk profile and, therefore, reduce their need for a claim.

“Insurers can play a crucial role in influencing customers’ decisions and behaviour to align with their best interests,” says Bagary. “Through targeted education, personalised recommendations, and innovative incentives, insurers can empower customers to make informed choices that not only protect their assets but also promote their overall well-being. By leveraging data to understand customer preferences and behaviours, insurers can tailor their approaches to effectively engage and motivate clients towards positive actions.”

Pienaar believes the key to building that partnership simply comes down to fulfilling promises: “The Urban Dictionary (sadly) defines insurance as ‘a business that involves selling people promises to pay later that are never fulfilled’. There’s an inherent lack of trust in the industry, which King Price strives to change at every client touchpoint, and especially at claim-stage, which has the potential to be a pain-point,” he says. “Essentially, all policyholders really want from their insurers, apart from low premiums and relevant products, is the minimum of fuss and a pain-free claims process.”

Olyott believes trust is also built with education: “At the heart of developing a triumvirate relationship is trust, through education of the parties involved. This ranges from explaining exactly how insurance covers are constructed and priced to the impact of insuring predictable losses and inherent risks in the sector or industry the client operates in together with a national and international view of emerging risk trends. Balancing this with being provided with more insight into the client’s own business and risk assessments will allow all three parties to better craft a suitable solution to meet the client’s specific risk profile and requirements.”

Supporting the client

If a client has to submit a claim, it means they’ve suffered some kind of misfortune. And while insurance is there to help with the financial burden of the incident, there are often other consequences of a claimable event that are not so easily rectified. These include emotional trauma, permanent disability, loss of a loved one or loss of irreplaceable items with high sentimental value.

Insurers have the data available to lower the client’s risk of experiencing such an event, but advisers are the ones who have the necessary rapport with clients to help them make the best decisions.

“Advisers play a critical role in leveraging insurer data to better advise their clients,” says Bagary. “By staying informed about the latest data-driven insights and utilising advanced analytics tools, advisers can offer personalised recommendations and strategic guidance that align with their clients’ goals and risk profiles. Collaboration between insurers and advisers enables a holistic approach to risk management, ensuring that clients receive comprehensive support and tailored solutions that meet their evolving needs.“

Johanni Jennings, Head of Marketing for Auto & General Insurance, stresses the importance of supporting the client before they reach the point of having to claim. “The claims process represents one of the most critical interactions a current policyholder has with an insurance company. It is a moment when clients are vulnerable and rely on the insurer and their financial adviser to fulfil the promises made at the time of policy sale. This necessitates a certain commitment from both the insurer and the financial adviser to honour the claim because commitment is what turns a promise into reality.

“However, being there for the client at the payout stage is not the sole requirement. If we genuinely aim to bring societal value into play, we must support clients long before a claim payout and even at the forefront of a disaster. It is crucial, as insurers and financial advisers, that we assist clients in preparing for claims. This not only helps minimise the likelihood of a claim but also ensures the smooth and prompt processing of a claim once submitted.”

In a world where data availability is at an all-time high and still increasing, it’s important to remember that business is not about numbers – it’s about people. And that behind those figures and percentages are individual human beings with plans and aspirations; families and friends. Crunching numbers should not only be about lowering operational costs and protecting profit, but equally about enriching the lives of those individuals who have chosen to be clients.

“The insurance sector is in an exciting transition phase that is being fuelled and enabled with the advancement of data and technology,” says Charlton. “Traditional insurance models are being enhanced and future proofed to the benefit of the customer. Stakeholders that are willing to evolve and embrace the changes will be instrumental in seeing the full benefits of the advancements come to be and ensure their longevity in the industry.”

Original Article - FIA

Property Fire Claims: How Business Owners can Protect Their Premises this Winter

Fri, 05 Jul 2024 07:28:20 GMT

Fire and explosion consistently rank among the top 10 global business risks in South Africa, highlighting the critical importance of ensuring that homes and businesses are fully protected against this threat.

The 13th Allianz Risk Barometer, released earlier this year, ranked fire and explosion as the eighth top business risk in South Africa. When Geoff Tanton, head of property and mid-corporate at Allianz Commercial, discussed the top risks in a webinar , he said that fires, while typically well managed, still cause major business interruptions and supply chain disruptions, particularly when critical components are concentrated among a few key suppliers. Recovering from fires often takes longer than other perils and includes the risk of losing clients due to business interruption.

In South Africa, ageing infrastructure exacerbates fire risks because of ineffective municipal water supply and fire services. Additionally, the widespread adoption of solar energy has increased the risk of fires from the use and storage of lithium-ion batteries.

Thabo Twalo, the chief underwriting officer at Santam Broker Solutions, says the increased risk of fire in winter is borne out by insurance statistics. Fire-related property insurance claims rise sharply during the colder months as people take steps to warm offices and buildings. It is therefore important to ensure that homes and businesses are fully protected against this risk.

With this in mind, Santam, South Africa’s largest short-term insurer, says the first priority for business owners is to check that their commercial insurance policies adequately protect their business and assets against fire damage and associated costs.

“Covering the cost of fire damage without insurance can be financially devastating for anyone and any business. Flames, smoke, and the water used to extinguish a fire can severely damage buildings, assets, and belongings. If you are not adequately insured, you may not be able to rebuild, repair or replace assets,” says Twalo.

The second priority is to ensure that the business follows effective risk management and prevention procedures, taking adequate measures to minimise the risk of fire.

“It’s important to be proactive in taking precautions to prevent fires from breaking out in the first place and, if they do break out, be able to extinguish them while they are still small and manageable,” he says.

Santam lists the following precautionary measures:

Fire extinguishers must be maintained. Installing fire extinguishers and then forgetting about them is nearly as bad as not having them at all. “Make sure your extinguishers are in good working order and are located in high-risk areas where fires can be expected to break out, such as in kitchens, on the factory floor, and near open fireplaces, including braai areas.”
Employees must have adequate fire training. It’s important that each staff member knows how to respond in the event of a fire. This would include knowledge of emergency evacuation procedures, where fire extinguishers are located, and how to operate them.
Guard against electrical risks. Old and unsafe electrical wiring can easily spark a fire and is therefore a big risk. Electrical wiring and wall sockets should be kept in good condition – never compromise on electrical installations. Risks also arise from bad workplace practices – fires can start when wall sockets become overloaded and extension cords become tangled.
Comply with regulations when using gas. Gas appliances and connections should be serviced regularly, and gas containers installed and stored in accordance with regulations. Always request a compliance certificate for gas and electrical installations, as this will confirm that the installation was properly done and complies with safety regulations. It will give you peace of mind and ensure that you are compliant with your insurance policy should you ever need to claim.
Handle flammable materials with care. Special measures should be in place for handling flammable materials, which are found in many workplace settings. These materials are not confined to volatile liquids such as paraffin, benzene, or alcohol; large quantities of paper, cardboard, and plastic also present a fire hazard. “Avoid the build-up of materials that can act as fuel for a fire, such as cardboard boxes, papers, and plastic containers waiting to be recycled,” Twalo says.
Install a fire sprinkler system. An automatic sprinkler system is an essential first line of defence against fire for many businesses. Provided they are professionally fitted, fully functioning and serviced regularly, these systems hold a number of benefits for business owners. “Fire sprinkler systems are designed to react automatically in the event of a fire, irrespective of the time of day, without the need for human intervention or having to navigate safety considerations. A well-designed system will ensure prompt control of the spread of fire to minimise and localise fire and water damage,” Twalo says, adding that if your budget cannot extend to a sprinkler system, you might consider installing smoke detectors to help with early fire detection.

“Savvy business owners understand the importance of risk management. The adage ‘prevention is better than cure’ most definitely applies when it comes to the risk of fire,” Twalo says.

Original Article - Moonstone

Navigating the storms of the future

Tue, 25 Jun 2024 08:42:27 GMT

In a rapidly changing world where natural forces are reshaping the landscape of risk, the insurance industry takes centre stage, confronting unique challenges and pioneering creative solutions.

From earthquakes rattling the earth's foundations to severe storms sweeping across vast territories, insurers and intermediaries are charting new territories and adapting to unforeseen circumstances.

It’s all in the statistics

AON recently published its 2024 Climate and Catastrophe Insight report, which identifies global natural disaster and climate trends to help make better decisions to manage volatility and enhance global resilience.

The report reveals that the 398 global natural disaster events caused a $380 billion (2022: $355 billion) economic loss during the 12 months under review - 22% above the 21st-century average - driven by significant earthquakes and relentless severe convective storms (SCS) in the United States and Europe.

Global insurance losses during the year were 31% above the 21st-century average, exceeding $100 billion for the fourth year in a row. With insurance covering only $118 billion (2022: $151 billion), or 31% of total losses, the ‘protection gap’ stood at 69% (2022: 58%), which highlights the urgency to expand insurance coverage.

According to the report, the number of large-loss natural hazard events reached record levels in 2023, with 66 billion-dollar economic loss events, and 37 billion-dollar insured loss events. Earthquakes caused the most economic losses, while severe convective storms were most costly to insurers. New Zealand, Italy, Greece, Slovenia and Croatia all recorded their costliest weather-related insurance events on record.

The report highlighted that 95 000 people globally lost their lives due to natural hazards in 2023 - the highest number since 2010 - resulting largely from earthquakes and heatwaves. In terms of climate, 2023 was the hottest year on record with ‘unprecedented temperature anomalies’, and all-time highs observed in 24 countries and territories.

On the local front

The impacts of climate change on South Africa have increased in recent years, according to Shivan Hutton, Managing Director, Head of Marsh Specialty, Africa. “We have seen increasing global temperatures, and subsequent rising sea levels impacting the coastal regions of South Africa. Extreme weather events, with heat waves, droughts and dry spells, and water scarcity are also more likely. These factors impact many sectors and communities, including the agriculture sector.”

“There is also concern many areas of South Africa will not be able to adapt to climate change, in addition, infrastructure may not be resilient to climate change, and supply chains are likely to be impacted as a result,” added Hutton.

Trends amid natural disaster surges

The rise in natural disasters prompts anticipation of trends in the insurance industry regarding risk assessment and coverage.

Hutton said at this moment in time, insurers in South Africa are reducing the levels of coverage and capacity available for certain risk scenarios, such as flood coverage.

“We expect to continue to see this trend as insurers remain cautious around the risk exposure and are conservative in their approach to response to climate risk. There is an opportunity for the insurance industry to change its stance and understand the extent of risk from specific events, and price adequately for the risk, to offer options and solutions for the industry at large. There is also a tendency in the insurance market to provide a unilateral approach - it is important the industry responds better to this by differentiating risk and offering better risk transfer solutions,” he said.

The protection gap

The increase in global natural disaster events and economic losses impacts the insurance industry significantly.

“The increasing frequency and severity of global natural catastrophe events, and the subsequent economic losses require insurance. The ability of the industry to measure and price climate-related risks remains uncertain as a consequence, and risk uncertainty is leading insurers to behave in different ways: reducing cover for natural catastrophe events or pricing risk higher - both of which have a cost of risk impact for customers,” said Hutton.

The size of the protection gap in South Africa and its significance for the insurance sector are important considerations. “There is a significant protection gap in South Africa, with the ability for insurers to provide capacity far below the requirements of the country’s businesses and communities. This requires insurers to provide more capital for South African climate-related risks; and to be able to provide more capital to insure climate risk and price the risk appropriately. The insurance sector needs to gather a better understanding of the potential impacts and be able to create capital to support the transfer of the risk to the insurance industry,” concluded Hutton.

With global losses rising and a growing protection gap, expanding coverage is urgent. In South Africa climate challenges persist, but insurers need to reconsider coverage reductions. Enhancing practices and understanding climate risks can bolster resilience in the insurance sector.

Writer’s thoughts

Intermediaries should consider their role not just as risk managers but as enablers of resilience. The challenge lies not only in providing adequate coverage but in fostering a proactive approach to risk that anticipates future climate scenarios and promotes long-term stability for businesses and communities alike. How can intermediaries leverage their unique position to influence both insurers and clients toward more sustainable practices and robust risk mitigation strategies?

Original Article - FAnews

Comprehensive Insurance 'Is a Necessity as Kidnappings Skyrocket'

Tue, 11 Jun 2024 11:50:53 GMT

Kidnap for ransom and “express” kidnapping have increased exponentially in Africa, with a 30% year-on-year increase over the past decade in South Africa, and insurance coverage tailored to this growing threat has become necessary, says Richard Hood, the chief executive of OLEA South Africa.

Hood says the exponential increase is associated with the rising levels of violent crime in the country.

Kidnappers are no longer targeting only high-net worth individuals. The level of risk is determined by an individual’s location, community or nationality, vulnerability, and type of employment or business, he says.

“Everyone is a potential target. Kidnappers change the ransom demands according to what they think the victim, or their families, can afford,” Hood says.

Kidnapping cases reported to the police have surged by 260% over the past decade, according to the Institute for Security Studies (ISS). The South African Police Service’s crime statistics for the third quarter of 2023 (October to December 2023) indicate an 11% year-on-year increase in kidnappings, totalling 4 577 cases over the period, which translates to about 51 kidnappings daily in South Africa, as reported by BusinessTech .

The newly coined concept of “express” kidnapping involves criminals kidnapping people and forcing them to withdraw the maximum amount allowed from ATMs or open their banking apps make electronic fund transfers. Hood says the kidnapping often ends when the victim can no longer withdraw money, but not always.

The epicentre of the kidnapping crisis is Gauteng. More than half of the total cases so far have been reported from the province (7 818 annually). However, according to Hood, gangs are expanding to other parts of the country in search of new targets.

ISS reported in 2023 that the main reasons for kidnappings are ransom, human trafficking, and extortion.

Hood adds that most cases of kidnapping in South Africa are a side-effect of carjacking, robbery, and rape, but crime experts say an increasing number of victims are now being singled out directly.

“The financial and psychological implications of a kidnapping can be staggering,” he says.

According to OLEA, the impact of kidnap for ransom includes:

Ransom demands can run into millions of dollars, and associated costs such as negotiation fees, legal expenses, and medical care for victims can escalate rapidly.
Kidnapping is a traumatic experience not only for the victim but also for their families and loved ones. The emotional and psychological impact can be long-lasting and may require extensive therapy and support.
Dealing with a kidnapping incident involves navigating complex legal and regulatory frameworks, both domestically and internationally. Having access to legal expertise and resources can be invaluable in such situations.

Although there is no way to protect yourself completely against kidnapping, there are ways to mitigate the consequences. Hood says cover available provides additional protection for a range of expenses associated with a kidnapping incident.

Most policies provide assistance services, to manage the incident to secure the best possible outcome.

“Beyond financial protection, such insurance provides access to expert assistance and resources essential for managing and resolving kidnapping incidents effectively,” Hood says.

Comprehensive insurance provides cover for a range of expenses associated with a kidnapping incident, including ransom payments, negotiation costs, medical care, and crisis management services.

In addition to financial protection, many insurance providers offer risk assessment and mitigation services to help individuals and businesses identify and minimise the likelihood of kidnapping incidents.

Original Article - Moonstone

Save the Profit

Thu, 06 Jun 2024 12:12:13 GMT

Scope of Business Interruption Insurance

Business Interruption insurance is also known as Loss of Profits insurance and/or Consequential Loss insurance. The policy is designed to provide the necessary indemnity to enable a business to achieve their financial results, which would have otherwise been achieved, had the material damage loss not occurred.

Business Interruption insurance is so vast that it is not possible to cover the subject in its entirety on this platform. Therefore, this article addresses only the most common elements of Business Interruption insurance.

Defined Events

A defined event is considered to be an event which causes loss following interruption of/or interference with the business. A business owner is covered for the consequence of loss or damage occurring during the period of insurance in respect of which payment has been made or liability admitted under the underlying material damage insurance policy.

Measuring the Loss

Comparing turnover figures before and after the damage is generally a satisfactory basis for measuring the effect of the reduction in earning capacity of a business because of damage. However, the yardstick or alternative may also be loss of revenue or even loss of rental. Sufficient provision should be made to appropriate adjustments for extraordinary circumstances and business trends.

The standard policy wording makes provision for all the definitions and methods to settle claims in terms of the policy.

Additional Expenditure

The occurrence of damage and consequent interruption to the business will inevitably involve additional expenditure to minimise the loss in turnover and to return the business to normal operations as quickly as possible.

Thus, indemnity for financial loss resultant upon damage must also provide compensation for additional expenditure which is undertaken to reduce prospective loss of turnover.

This cover is provided for in the standard policy to the extent that additional expenditure does not exceed the loss in gross profit incurred (the economic limit: the policy will not pay more than R100 to save R100).

Settling the Sum Insured

In settling the sum insured against the gross profit figure it is essential that projected figures reflecting the anticipated financial results be utilised as those of the previous financial year will not take cognisance of increasing trends, planned changes and growth for the future, or other factors such as economic inflation on future turnover and gross profit.

Based on a maximum indemnity period of twelve months and on the basis that the damage might occur during the last week of the policy insurance period, the forecast projection will need to be made two years into the future.

In those cases where the maximum indemnity period is longer than twelve months, the forecast projection must be done accordingly to cater for such extended maximum periods of indemnity.

Sum Insured in Relation to Indemnity Period

When the maximum indemnity period is twelve months or less, the sum insured should not be less than the amount of the estimated annual gross profit which may potentially be achieved in the future.

With a maximum indemnity period of less than twelve months, the estimated annual gross profit figure remains that to be insured, but the premium will be adjusted (reduced) to make allowance for the shorter indemnity period.

In the case of maximum indemnity periods exceeding twelve months , the sum insured should represent the estimated gross profit which will be earned in the future during the corresponding period.

Whilst the loss may be instant, the Insurer may delay final settlement of the claim to the end of the indemnity period. This practice does not happen very often, and normally there is a reason for such action.

Some Business Interruption policies (especially in the Engineering Insurance sector) may have a time deductible prior to the inception of the indemnity period. On the other hand, interim provisional claims payments are usually made to the Insured to keep his business “afloat”.

If you would like to speak to an expert, please contact your Broker directly, who in turn may then need to approach Consort to assist with your requirements.

Original Article - Consort

Warning for motorists filling up at petrol stations in South Africa

Wed, 24 Apr 2024 09:05:17 GMT

Experts have warned that motorists at petrol stations are easy targets for hijackers, as there’s been a notable uptick in the number of incidents reported, while the petrol stations themselves are also vulnerable.

This warning comes after the murder of Kaizer Chiefs defender Luke Fleurs during a hijacking incident at a petrol station in Honeydew earlier this month and the attempted ATM robbery at another in Nelspruit, reported by the SAPS.

Speaking to SABC News , Louis Nyahunda, Senior Research Fellow at the Tshwane University of Technology Department of Law, Safety and Security Management, said the increase in reported incidents at petrol stations is a major red flag.

“The increase in petrol station-related crimes is a big concern,” he said, adding that petrol stations were highly vulnerable due to the calibre of attractive assets found there.

He said the main targets of criminals and hijackers at the stations are cash, ATMs, customers’ cars, and cell phones.

This makes both the petrol station and its customers the targets, and the increase in ATM bombings has also piqued the interest of law officials.

Nyahunda noted that petrol stations are identified by criminals as ideal locations to commit criminal acts because of the glaring lack of security, the lack of devices to counter crime and inefficient and poor policing.

Security experts have cautioned South African motorists to stay alert while filling up, note their surroundings and suspicious characters in the area, and keep their doors locked.

In the case of a hijacking, they recommend that you give up your vehicle and valuables without a fight, as this is likely to save your life.

The experts also noted that traffic lights across the country remain a hijacking hotspot, and similar precautions and vigilance should be taken when stationed at a red light.

South Africa has seen an increase in hijackings year-on-year, with some provinces experiencing a bigger jump in hijackings than others.

The South African Police Service (SAPS) noted that 5,973 cars were hijacked over the third quarter of the year (October to December 2023).

This equates to approximately 66 cars being stolen daily, a 6.5% rise from the same period in 2022.

According to the SAPS, three provinces experienced a notable year-on-year increase (>10%) in hijackings – these being the Gauteng (14.4%), the Western Cape (14%) and North West (11%).

Interestingly, Kwa-Zulu Natal saw a 17.6% decrease in carjackings, followed by the Eastern Cape (-5.2%).

Targeted vehicles

According to Wahl Bartmann, CEO of Fidelity Services Group, hijackers in South Africa often focus on popular car models like Fords, Nissans, Toyotas, and VWs.

These vehicles are in high demand on the black market across the continent. As Bartmann explained earlier this year to BusinessTech, vehicle hijackings are mostly driven by supply and demand dynamics within the criminal marketplace.

In recent times, the RAV 4 and Toyota Corolla Cross have become high-risk models.

The Corolla Cross was launched in November 2021 and consistently ranked among the country’s best-selling cars in 2023/24. It sold over 22,000 units and secured fourth place on Naamsa’s top 10 list.

It has remained within the top five through most of the first half of 2024. This remains true for other Toyoas (such as the Hilux), VWs (Polos), and Fords (the Ranger).

“Hijackers target specific vehicles for a specific purpose and market. The demand for Toyotas, VWs, Fords, and Nissans remains high on the black market ,” he said.

Original Article

Why Insurance Should be Factored into the Cost of Buying a Car

Thu, 11 Apr 2024 13:03:04 GMT

Consumers could save significant amounts of money every month by buying cars that come with affordable short-term insurance premiums.

According to short-term insurance actuary John Wessels, most consumers select the make and model of their new car, choose a colour and the extras, and receive finance approval before even considering insurance.

“Getting short-term insurance quotes is often a last-minute scramble triggered by the car dealership requesting proof of insurance before allowing you to drive your new car out of the showroom, especially if your car is financed,” says Wessels.

He adds that the shock of unexpected short-term insurance premiums is usually the biggest for young first-time car buyers, who also tend to have higher insurance premiums.

“If they have maxed out their budget on car repayments without considering the cost of insurance, these new car owners may face an unexpected financial shortfall every month. All it takes then is an increase in the interest rate, and possibly more hikes in the fuel price, and the car becomes unaffordable.”

Wessels says it is no surprise that the Ombudsman for Banking Services reported increased vehicle repossessions last year. In 2023, the South African Reserve Bank hiked the repo rate from 7% to a 14-year high of 8.25%, placing a significant burden on consumers with debts such as car repayments. The cost of petrol increased by 14% in 2023.

The cost of insurance should determine the car you buy

Wessels says that car insurance premiums are determined by several factors, including the following:

the make and model of the car;
the driver’s age and driving history;
the owner’s credit profile;
where the vehicle will be parked most of the time;
whether the vehicle is used for private driving, business or both;
the level of coverage and the excess chosen; and
any optional add-ons, such as car hire.

According to Wessels, a young and inexperienced driver who buys a fast car from a brand more likely to be stolen can expect a sizeable monthly insurance premium.

“This can be avoided by obtaining insurance quotes for different types of cars before committing to a purchase,” says Wessels. “You may not get the car of your dreams, but at least you know that you will not lose your new wheels to a bank repossession a couple of months down the line.”

He cautions that a repossession also results in a blacklisting with the credit bureaus, which means you will not be able to buy a car on credit for some time. A poor credit record can also increase insurance premiums on future purchases.

“Being proactive about insurance when looking for a vehicle can help you make sure that the overall cost of owning the vehicle fits into your budget. Considering insurance before signing the finance agreement will make sure that you drive off the dealership floor with a smile on your face rather than an unexpectedly large debit order.”

To emphasise the point, Wessels uses the example of a 27-year-old male driver who decides to buy his first car following a promotion. His total budget is R6 000 a month, but while shopping for a car, he does not factor in the insurance cost.

He decides on a two-year-old sporty car manufactured by a German carmaker worth about R300 000. The monthly repayment is R5 500, which he considers affordable. After signing the finance agreement, the dealer informs him that he will need insurance before he can drive the car home. The lowest insurance quote is R1 900, bringing the total cost of owning the vehicle to R7 400.

Wessel points out that if the driver had considered the cost of insurance upfront, he may have chosen a not-so-sporty two-year-old vehicle worth about R220 000. The monthly repayment would have been about R4 000 with a monthly insurance premium of R1 200. This would have brought his total vehicle cost to R5 200, leaving some extra money in his budget for vehicle maintenance.

Why you need car insurance

Wessels points out that vehicle insurance is not a legal requirement in South Africa, and as a result, most drivers are not insured. The Automobile Association estimates that 65% of motorists do not have vehicle insurance.

Motorists with vehicle insurance often drive a financed vehicle because banks require car insurance as part of the finance agreement. “If you cancel your insurance before your vehicle is paid in full, you are not only in breach of contract, but you also risk having to honour monthly repayments if your car is stolen or written off in an accident.”

Wessels says that even if you bought your car in cash or if it has been paid off, insurance should be non-negotiable.

“Car insurance provides essential financial protection against accidents and the theft of your vehicle. Repairing a car that has been in an accident or replacing a car comes at a significant cost, and most people can’t afford to repair or replace their vehicle out of pocket. Insurance allows you to pay a smaller amount each month so that you are protected against the large risk of losing your vehicle or being liable for damages to someone else’s vehicle.”

Wessels says considering that more than one million road accidents are reported in a year, the likelihood of being involved in an accident where the other car is not insured are very high.

“If you have comprehensive insurance cover and were not guilty of gross negligence when the accident happened, like being drunk or under the influence of drugs, you can rely on your insurance to take care of the finances required to help you back on the road.”

Criminals are targetting ‘tap to pay’ in South Africa – what you need to know

Thu, 14 Mar 2024 08:28:47 GMT

A recent security video in South Africa shows how criminals are targetting bank cards with the tap-to-pay functionality to steal from victims.

Tap-and-go or contactless payments – such as tapping your card or using your smartphone or smartwatch at a point-of-sale (POS) machine – are becoming increasingly popular due to their convenience.

However, although banks have developed fraud detection and prevention systems, such as SIM Swap detection, transaction monitoring, 2-factor authentication (2FA) and other customer identification methods, fraudsters are constantly devising new ways to bypass these systems, making it an ongoing battle for banks to stay one step ahead.

One such tactic was illustrated in a security video on social media platform X.

Shared by Crime Watch’s Yusuf Abramjee, a security video of an unknown store shows how card scammers clone banking card information using the tap-to-pay function.

In the video, the criminals place items they intend to “buy” at the point of sales desk while talking to the cashier, before telling the victim to go in front of them for some reason.

The victim then goes ahead of the criminals to pay for their goods. However, when they pay using their card, the criminal gets close enough to use his smartphone to scan the card using software that likely clones the card’s details.

This all happens without the victim’s knowledge or notification that their card has been scanned.

The video can be viewed below.

According to the Ombudsman for Banking Services (OBSSA) , this scam works by exploiting near-field communication (NFC) technology and tap-and-go payment systems.

NFC technology scams involve fraudsters using stolen bank card information, such as the card number, expiry date, and CVV number, to make fraudulent purchases through digital wallets.

The OBSSA noted that fraudsters use stolen card information to link their smart devices, such as smartphones and smartwatches, to payment platforms like Samsung Pay, Apple Pay, Garmin Pay, and Google Pay.

It added this type of fraud is becoming popular among criminals because NFC/digital wallet payments do not require OTPs for every transaction – much like when you don’t receive an OTP when purchasing through tap-to-pay, albeit at a certain limit.

The Ombudsman confirmed hundreds of NFC fraud-related complaints have recently formally been reported and investigated by her office.

The losses suffered are in the millions of rands, with customers’ accounts fraudulently drained through tap-and-go purchases made with smart devices in mostly foreign jurisdictions such as Dubai, France, and Spain while the legitimate cardholders were in South Africa.

Original Article - Business Tech

CIPC hack has potentially serious consequences for SA organisations

Thu, 14 Mar 2024 08:23:20 GMT

The South African Companies and Intellectual Property Commission (CIPC) holds the registration details of companies, co-operatives and intellectual property rights within a vast database that comprises ID numbers, addresses, contact information and more. It has also recently been compromised in a hack that has left millions of companies vulnerable.

The CIPC has stated that it is “taking every reasonable step to ensure that all CIPC systems and platforms are safe and protected from unauthorised and unlawful access”.

However, there is a lack of visibility on what type of information was stolen, which is a very real concern, as some of the data should not be in the public domain, much less in the hands of hackers.

The CIPC site does allow for organisations and individuals to verify a company using basic information such as the registration number, but the moment you get real information about directors such as their ID and where they live, there is ample opportunity for fraud and identity theft.

For example, using a company’s registration and director information, criminals can place an order for laptops with fake banking information and a fake address. The firm providing those laptops will then chase the company for payment of an order it didn’t make. Then the company is liable for the costs, not the threat actor.

In addition to impersonating a director, fraudsters can use the information to email customers of legitimate organisations and claim the company has changed its bank account information. They can provide customers and suppliers with CIPC data that verifies who they are and essentially siphon funds away from the business. Customers will insist they’ve paid, but the funds have actually gone to a fraudulent account.

As the extent of the hack emerges, companies need to remain on the alert for at least six to 12 months – this type of attack has a long tail and organisations need to protect themselves through constant vigilance. The risk is that many companies won’t realise they’ve been targeted until an incident is flagged. This can then cost them significantly in terms of reputational damage, financial loss and even customers.

Companies, whether they are large enterprises or solopreneurs, need to stay close to TransUnion and Experian right now.

You need to see who is opening up accounts in your name. For larger organisations, it’s worth taking a leaf out of the financial institution playbook and creating digitally stamped documents to prove that any request or purchase is coming from a legitimate company. Most importantly, though, for companies of all sizes, is to stay close to the credit bureaus so you can quickly catch any unusual activity.

To mitigate potential customer fallout, companies should contact their customers and highlight the risks, asking them to be aware of any changes in day-to-day interactions and confirm in person if any requested changes are genuine.

Every single company in South Africa needs to send out an email to customers highlighting the potential risks and giving them insight into how they can prevent them,.

In addition, individuals need to be aware of fake calls and scams – if a caller says they’re from a fraud division, instead of paying or providing personal information, suggest calling them back first. The CIPC hack essentially asks that companies and individuals increase their vigilance across all platforms so they don’t fall victim to crime.

For many companies and individuals, a successful hack or case of fraud can leave them financially destitute and there are limited legal and governmental protections in place. While this landscape is changing, the best step forward is to be on the constant alert to avoid the need to take the CIPC on a long, drawn-out court case or rebuild your business from scratch.

Original Article - MSM

10 Important Points of the Cost of Underinsurance

Tue, 05 Mar 2024 13:36:21 GMT

1. Introduction to underinsurance

It is a prerequisite of certain classes of insurance that the insurance values are adequate to match the exposure. In the event of deliberate or inadvertent failure to choose a Sum Insured that at least matches or exceeds the value of the property at risk, Average will apply due to the underinsurance.

2. Basic Average clause

If the property covered hereby shall, at the commencement of any destruction of / or damage to such property by any peril insured against, be collectively of greater value than the Sum Insured thereon, then the Insured shall be considered as being his own insurer for the difference and shall bear a ratable share of the loss accordingly. Every item, if more than one item, shall be separately subject to this condition.

3. Where did underinsurance and Average originate from?

The history of Average emanates back to the days of marine cargo insurance. Since that time, the Average clause has been modified but when it comes to marine insurance, it is commonly referred to as “general average”.

4. How often do claims present a challenge when it comes to the settlement and the quantum?

As much as 30% to 50% of claims under various policies are impacted by the application of Average.

5. What are the main causes of underinsurance?

The main causes of underinsurance can be attributed to the inadequacy to undertake a thorough review of the Sum Insured of the Property Insured. This review should be conducted at the inception or renewal of the particular insurance policy, if not, at intervals of the currency of the policy.

Policy wordings vary from Insurer to Insurer but it is always important to understand what makes up the Sum Insured of the Property Insured. For example, customs duties, transport costs, professional fees, installation costs and the like may form part of the Insurer’s requirement in the Sum Insured.

6. How can you prevent underinsurance?

The Insured is required to present to the Broker / Insurer a comprehensive up to date inventory of all the Property Insured at inception or at review (renewal) of the policy. An important consideration is to make sure that the Insured declares all the Property Insured which makes up the total Sum Insured.

It is also possible for the Insured to employ the services of a professional valuator who is competent and qualified to prepare an accurate assessment of the Property Insured.

7. Why is there a Condition of Average applied to a policy?

The Condition of Average applies to virtually all material damage policies and is a means of making sure that the Insurer is not compromised when it comes to receiving premiums for the Property Insured. A prime example is having a first loss limitation which in some instances is allowed for in the policy wording. If a policy excludes the Condition of Average, the Insured will then only tend to be insured for a pre-determined maximum limit for any one loss or occurrence. To obtain a commensurate premium in the event of a loss limit policy, the premium must still be calculated on the full value at risk.

Consider the following scenario – your Electronic Equipment total Sum Insured is R50 million but the likelihood of losing all at any one time is so remote (including the spread of the equipment at various premises / locations), that you pick the highest maximum possible loss at R15 million. The Insurer would then only receive premium for R15 million worth of equipment whilst they are entitled to receive premium on the full total Sum of R50 million.

8. How is Average calculated?

There are a few versions of how Average is calculated and applied, but the most common version is:

Loss Amount x Insured Value / Total Sum Insured.

For example: R50,000 (Loss Amount) x R150,000 (Insured Value) / R250,000 (Insured Value)

= R30,000 (Claim Settlement) before deduction of deductible.

It must be noted that Average can only be applied by an Insurer in respect of underinsurance should they decide to settle the claim on a cash basis. If the Insurer exercises his / her right to reinstate or replace the lost or damaged property, then Average cannot be applied.

9. Talk to your Broker

When it comes to setting the correct Sum Insured, talk to your Broker to obtain sound advice. Your Broker will assist you to avoid the application of Average when it comes to certain classes of risks which are subject to the Condition of Average.

10. Consort has the expertise

At Consort we have a panel of experienced Underwriters who will be able to assist with queries about Average and underinsurance.

Original Article - Consort

When undo is not an option

Fri, 19 Jan 2024 06:46:32 GMT

It is important to bear in mind that insurance requirements should be up to date and comply with the key insurance terms and conditions.

Always remember that it could be too late to change what went wrong after the occurrence has taken place. You cannot undo or reverse what has happened.

Have a Broker on board

An insurance Broker is one of the most important persons to have on board to look after your day-to-day insurance requirements. Part of the Broker’s function is to take care of your interests and to provide sound advice and expertise regarding those insurance policies which are entrusted to the Broker.

Meet with your Broker

Before you overlook something vitally important in your insurance policies, invite your insurance Broker to have a formal meeting to address your concerns. Brokers are always willing to offer their support, but they also need your undivided attention.

Re-visit your policies

During the meeting your Broker will re-visit the following aspects:

A brief overview of the policies that are currently active / in force.
The purpose or intention of having each of the policies as described in (1) above.
The present extent and content of the insurance policies.
Main aspects of what is covered and what is excluded in the policy / policies.
Any important warranties and / or onerous conditions that may apply.
Precautions that should be taken to prevent potential claims. Exercise due care.
In the event of an incident / accident who can be contacted whilst the Insured is away or out of reach. Other parties’ details e.g. family members, custodians or people who have been appointed by the Insured in the event of an emergency.
Platforms of communication the Insured can be contacted on. As per (7) above, it is important that whatever the circumstances, someone is immediately available and contactable.

Terms and conditions to ensure compliance

Timeous notification of incidents

Most policies, if not all, require prompt notification of incidents that could lead to a claim or potential claim. Late notification could be detrimental because it may affect the outcome of the settlement and / or payment of the claim. Encourage the Insured to promptly report all incidents to you as the insurance Broker.

Disclosure of change of risk

A change in the risk profile which enhances the Insured’s risk exposure can increase the potential for loss or damage. Be aware of non-disclosure of a material fact.

Premium payable as required

Premium is payable at inception or at renewal of the policy. Late or non-payment of premiums could result in the insurance policy being voided or cancelled, leaving the Insured without cover.

No misrepresentation of facts

Misrepresentation is a false or misleading description of a material fact (whether it is deliberate or not).

Reasonable precaution taken

The Insured should take precaution as though the person is uninsured. The Insured should address any known defects or dangers that could be connected to the business, premises and / or equipment. It is advisable that immediate steps be taken to remedy the defect or remove the danger once it comes to the attention or knowledge of the Insured.

Warranties complied with

The definition of a warranty can be described in two aspects:

A warranty is a form of a written guarantee that is usually issued between the seller and the buyer of goods. If the goods fail to achieve the specifications of what they are intended, the buyer has the right to call upon the seller to honour the warranty and make good the problem or fault.
In short term insurance, a warranty has a different meaning. The Insured must comply with exactly what the warranty requires to be or to adhered to. Any deviation or non-compliance of the warranty could result in a breach and have negative consequences on terms of the policy.

Within territorial limits

The geographical area or boundaries within which the policy will operate. Any incident of loss or damage outside the territorial limits will fall outside the scope of the policy.

With due care

The Insured should exercise all reasonable care and precaution in conducting their business.

No fraud

Fraud can be described as a criminal deception which is intended to bring about financial and / or personal gain to an individual or company. The discovery of fraud in an insurance matter can result in cancellation of and / or voidance of the policy indemnity.

Conclusion

A non-compliance with any of the above-mentioned terms and conditions could prejudice the Insured when it comes to policy indemnity and a potential claim. It is crucial to clearly communicate these considerations to the Insured and to ensure that their insurance requirements are up to date and aligned with their needs and the policy terms and conditions.

Please contact your Broker directly, who will then approach Consort to assist with your requirements.

Consort Technical Underwriting Managers (Pty) Ltd (FSP 2273) underwritten by Lombard Insurance Company Limited (FSP 1596) an Insurer licensed to conduct non-life insurance business.

Original Article - Consort

Securing your home against rain damage during seasonal rains

Wed, 29 Nov 2023 08:28:52 GMT

The worst areas for hijacking in South Africa – and the cars being targetted

Mon, 20 Nov 2023 08:18:09 GMT

While South Africa has seen a slight decrease in hijackings year-on-year, the numbers are still alarmingly high, with some provinces experiencing a big jump in hijackings.

Presenting the latest quarterly crime statistics for the second quarter of the year – July 2023 to September 2023 – the South African Police Service (SAPS) noted that 6,009 cars were hijacked over the three-month period.

This is a decline of 2.3% compared to the same period in 2022. However, it equates to approximately 66 cars being stolen daily in the country.

According to the SAPS, two provinces experienced a notable year-on-year increase (>10%) in hijackings – these being the Mpumalanga (14.1%) and North West (13.5%).

Interestingly, the Eastern Cape saw a 15.9% decrease in carjackings, followed by the Western Cape (-8.2%) and Kwa-Zulu Natal (-7.9%), while Limpopo saw a 5.1% decline in hijackings.

Despite the meagre increase in Gauteng, carjackings are most prevalent in South Africa’s most populous regions, such as Gauteng, KwaZulu Natal, and the Western Cape.

Gauteng saw 2,984 hijackings, representing 49.7% of all carjackings in Q2 2023/24. the Western Cape experienced 887 carjackings, and Kwa-Zulu Natal saw 880.

Looking at more granular station data, though, the Western Cape has the most hijackings per region, with Harare in the province having the most cases. In Mpumalanga, Witbank has the highest reported cases, increasing 225% compared to last year.

The top hijacking hotspots for the three most populated provinces are listed below.

Gauteng:

Protea
Moroka
Orange Farms
Olievenhoutbosch
Bramley

Kwa-Zulu Natal:

Umlazi
Bhekithemba

Western Cape:

Harare
Nyanga
Philippi East
Delft
Mfuleni

Targeted vehicles

Santam noted in its report that it has seen a shift away from older, low-value vehicles with limited security requirements to more expensive double cabs and SUVs. This aligned with the experiences of private security companies such as Fidelity ADT.

According to Fidelity, vehicles under the Toyota, VW, Ford, and Nissan brands continue to be common targets among criminals, and the specific models include:

Toyota Hilux, Fortuner, and Corollas
VW Polos
Nissan NP200s

However, much like Santam’s experience, Fidelity noted that high-value cars such as Toyota Prados and Toyota Landcruisers are among the most popular models for criminals, along with the Hilux bakkie and Fortuner SUV.

The issue is so persistent with Toyota vehicles that the automaker developed numerous safety upgrades for models with the keyless entry ability, which it started providing to customers free of charge in December 2022.

Santam added that these vehicles, along with other high-value targets, are up to 20 times more likely than similar-priced models to be hijacked or stolen. Unsurprisingly, it added that the two most high-risk provinces for vehicle hijackings and theft are Gauteng and Kwa-Zulu Natal.

This trend of targeting popular hatchbacks and bakkies highlighted by Fidelity ADT is also evident in the SAPS report, which showed that Sedans, hatchbacks, and coupes accounted for 2,841 of the vehicles hijacked, followed by bakkies which accounted for 1,878.

These vehicle segments represented 47.3% and 31.3% of all the hijacked cars in the second quarter of 2023.

Original Article - Business Tech

Brokers brace for weather-related premium surges

Thu, 12 Oct 2023 09:43:25 GMT

The rising frequency and severity of extreme weather events is on clear display in the claim data of one of South Africa’s leading insurers, underpinning the likelihood of further coverage restrictions and premium increases in coming years. “I have dug up some of our historic data to illustrate what is happening domestically from a climate change perspective,” said Soul Abraham, CEO: Retail Insurance at Old Mutual Insure. “These numbers are useful for advisers and brokers when talking to customers about their insurance programmes”.

Earthquake dominates global catastrophe losses

Abraham, who was presenting to the financial and risk intermediaries in attendance at the Financial Intermediaries Association of Southern Africa (FIA) Advice Summit 2023, started proceedings by sharing an overview of the global natural catastrophe landscape.

Aon’s most recent Global Catastrophe Recap puts global economic losses in the first half of 2023 at a staggering USD194 billion compared to the 21st Century average of USD128 billion. And although much of this damage was due to earthquake in Turkey and Syria in February, the professional services firm also identified 24 other billion-dollar-plus economic loss events during the period, all but one being weather-related. The South African experience is similar, though at fractions of the cost seen in Asia, Europe and the United States.

Abraham went through his firm’s catastrophe claim data from 1982, categorising each loss event as small, medium or large. “We picked up 36 large events between 2012 and 2022, and the trend has persisted into 2023, with about five large events year-to-date end-September,” he said. This compares to six large events between 1982 and 1991, and five between 1992 and 2001. So, the rising frequency trend is an easy ‘tick’. The severity trend is confirmed too, with the average claim per year over the decade ending December 2022 being 10 times the average claim per year between 2001 and 2011. “Up to 2011, the average year saw ZAR39 million in catastrophe claims; in the last 10-years its gone up to ZAR371 million,” he said.

Ask a South African insurance guru about mega natural catastrophe (NATCAT) losses and they will immediately refer to the 2017 Knysna fires or April 2022 KwaZulu-Natal (KZN) floods. Abraham acknowledged the severity of these events; but warned that the frequency of smaller events was steadily gnawing away at insurers’ and reinsurers’ balance sheets. He noted that insurers were increasingly viewing R10-R100 million insured losses as attrition-type events rather than large catastrophes. Reinsurers, meanwhile, had little choice but to reclassify parts of Southern Africa from low NATCAT risk areas to a medium- to high-risk. “Rates have hardened significantly, and the deductibles have gone up quite significantly, across the industry,” Abraham said.

Serious consequences as weather goes awry

The consequences of higher frequency and severity extreme weather events do not end there. Globally, increased natural catastrophe activity introduces volatility to short-term insurers’ underwriting margins which in turn sees investors in the segment demanding higher returns on their capital. Insurers and reinsurers, meanwhile, have to take steps to match premium with rising risk exposures, which is done through reducing or excluding coverage for certain perils; increasing premiums; and / or making more stringent client-side risk mitigation demands.

Climate change is increasingly blamed for both extreme weather and higher global temperatures. “Global warming will push temperature records into the unknown sooner rather than later,” said Abraham. “In fact, the hottest July ever recorded in Europe is forecast to become the average summer a decade from today”. As global average temperatures climb, weather experts expect more frequent and severe thunderstorms. Global NATCAT statistics for the first half of 2023 confirm that severe thunderstorms accounted for up to 70% of all insured losses, with USD35 billion in total claims versus the 10-year average of USD18.4 billion.

All other natural catastrophe categories have remained relatively stable, at a combined USD19 billion over the half-year. Locally, Old Mutual Insure says it has processed claims following five severe thunderstorm events over the same period. “These thunderstorms came out of nowhere and cost a significant amount of money each time,” Abraham said.

Turning to tech to stem the claim tide

The insurer is paying more attention to modelling drought, fire and flood risk and is able to get a zoomed in, granular view of the 20-, 50- and 100-year flood lines affecting properties in most urban settings; there is also plenty of evidence to support the accuracy of these flood lines. Abraham noted that a property that fell within a 20-year flood line should be underwritten differently to a neighbouring property that did not, all else being equal.

Despite the risks posed by the rising frequency and severity of extreme weather events, the insurer still wants to cover commercial and personal lines assets against flood and thunderstorm. “We do still want to offer climate change solutions; but this will likely go beyond insurance products to include advice, data and technology,” Abraham said. And that means that Financial and risk advice is more important than ever.

“The biggest challenge we face when dealing with catastrophe claims is the lack of maintenance at insureds’ properties … insureds need to understand where the historic flood lines are, where storm water runs, and where sea levels reach during storm or tidal surges,” Abraham said. Property owners need to take the basic steps to defend their property against extreme weather events. There is also a growing realisation that insurers face pluvial or surface flooding in addition to flooding due to overflowing dams or rivers.

Pluvial flooding occurs in cities and towns where stormwater drainage and run-off is inadequate or poorly maintained. The consequence, according to Abraham, is that the insurer often receives claims for post-thunderstorm flooding damage or loss despite data and pricing indicating a low flood risk. Wildfire is wreaking havoc globally and locally too.

Year-to-date September 2023, wildfires in Canada have burned through 42 million acres, affecting six times the area of the long-term average. Europe has also been scorched, with fires in Greece, Portugal and Spain contributing to economic losses north of USD4.43 billion. And in the United States, a fire on the Hawaiian island of Maui is now confirmed as the fifth-deadliest wildland blaze in US history. South Africa is no stranger to wildfire losses. Coinciding with the presentation, the country had suffered significant fire-related agriculture losses in the Northern Cape and there were three fires “being monitored” along the Drakensberg mountain ranges. Abraham commented on the reality of an insurer’s claim desk processing flood and wildfire claims simultaneously.

Sustainable insurance non-negotiable

“From a climate change perspective insurers can expect more frequent catastrophe losses; we need to work together to make sure the insurance industry remains sustainable, including a tighter focus on our balance sheets,” Abraham said, before concluding with a rather grim observation: You cannot run from climate change, if the flooding does not get you, the wildfires will.

As natural catastrophe events keep stacking up, there is a compelling argument to redefine short-term insurance cover from ‘grudge purchase’ to non-negotiable ‘shopping’ essential. The ‘shopping’ solution includes giving the right advice to clients and ensuring that they do whatever possible to mitigate damage or loss due to NATCAT risks, thereby reducing insurers’ overall exposures.

Writer’s thoughts:

The 2023 FIA Advice Summit painted a frightening climate-related systemic risk environment beset by growing economic and insurance losses. Can existing insurance models accommodate climate risk and continue to give commercial insureds the confidence / support to invest in their businesses?

Original Article - FA News

SAIA Launches Online Tool for Consumers to Check the Status of a Second-Hand Vehicle

Tue, 12 Sep 2023 06:49:20 GMT

The South African Insurance Association (SAIA) has launched an online tool for consumers to check the history of a vehicle they intend to buy.

The free web-based facility, called VIN-Lookup , queries a car’s vehicle identification number (VIN) against the insurance industry’s vehicle salvage database (VSB).

Zakes Sondiyazi, SAIA’s manger: insurance risks, said VIN-Lookup was non-life insurers’ contribution to addressing the problem of purchasing unsafe repaired cars from vehicle salvage houses.

“SAIA urges consumers to use VIN-Lookup as just part of thorough research when buying a used car rather than treat it as a single solution to understanding the history of a vehicle.”

In addition to VIN-Lookup, buyers of used or damaged vehicles should refer to expert service providers, such as roadworthy test facilities. The physical inspection of a salvage vehicle by a trained professional remains the best option, he said.

To use VIN-Lookup, consumers must complete three fields: their name, their identity number, and the vehicle identification number (VIN).

If the VIN is found in the database, the user will see a short narrative about the vehicle. For example, text that looks similar to the following:

“SJNXXXX15Z6299693

“The vehicle was deregistered as DEMOLISHED because it had irreparable structural damage that could not be repaired to a safe and roadworthy state AND no major components could be used for vehicle spare parts.

“In terms of Regulation 13A read with Regulation 1 and 55 of The National Road Traffic Act, 1996, the vehicle shall not be registered, and its parts shall not be used to build or repair any motor vehicle.”

The implementation of VIN-Lookup is being done in phases. The first phase includes the following vehicle salvage records:

Rebuilt (Code 3)
Spare parts only (Code 3A)
Scrap – permanently demolished (Code 4)

The second phase of VIN-Lookup will consider including Code 2 (written-off) vehicles, which may become available by the end of 2023.

The database is limited

The VSD from which information is drawn for VIN-Lookup contains records that show how insurance companies have designated previously insured vehicles. The database does not contain a comprehensive record of all vehicles and their status. Full records of all vehicles, insured or not, are held on the NaTIS system that falls under the Road Traffic Management Corporation, an agency of the Department of Transport.

SAIA’s chief executive, Viviene Pearson, said it is important that consumers note that not all written-off vehicles will be in the database.

“Of the 14 million registered vehicles in South Africa, less than a third is insured – less than five million. Therefore, the industry’s VSD will likely have less than 3% of vehicles that are written-off, and most of these are vehicles that can be rebuilt, or can only be used for spare parts, or should be demolished. This means that access to this small database against the population of registered vehicles in South Africa is not the silver bullet as mentioned in some reports written on this topic,” Pearson said.

Not a report on the quality of the repair

The information provided through VIN-Lookup is considered complete at the time it was received, reflecting the status of the vehicle at the time it was in the possession of the information owner, the insurance company. The status does not reflect the quality of the repair or the roadworthiness of the vehicle.

“We always recommend that you have any vehicle checked by a qualified third party to ensure it is roadworthy and repaired to an acceptable standard,” Sondiyazi said.

SAIA further advises users of VIN-Lookup to note that use of the information is at their own risk with no liability on the owners of the information or the administrator of the VSD-shared information.

SAIA said it consulted widely with industry stakeholders in developing VIN-Lookup. This included the Department of Transport as custodians of the National Road Traffic Act, and which provides guidelines to determine the life-cycle status of a motor vehicle as implemented on the NaTIS system. The South African Police Service was among the other stakeholders consulted.

Code 2 vehicles should be included

A report by Engineering News quoted Jacques Viljoen, the national director of the South African Motor Body Repairers Association (Sambra), as saying that although his industry welcomed the release of VIN-Lookup, the facility failed to “get to the heart of the problem”: previously written-off Code 2 vehicles that find their way to salvage yards, are repaired, and sold to unsuspecting consumers.

“The Code 3s and 4s are already on our system, but it is the Code 2s which have been declared uneconomical to repair which talk to the problem.”

Without a transparent record, there is no way to inform prospective buyers of used motor vehicles of the status history of the vehicle, he said.

The report also quoted William Miller, chief executive of DealersOnline, a vehicle valuation and auction specialist, as saying his company receives at least one complaint a week of an incorrectly coded vehicle.

For example, the company was sent a 2021 KIA Seltos, with just more than 38 000km on the clock, for an independent assessment.

The vehicle had been bought as new from a dealer and sold to another dealership with the information that it had sustained some rear-end damage. On inspection, however, only minor imperfections in paint and body panels on the rear could be seen.

“What the dealer did not realise is that the vehicle had actually been declared a write-off in September 2022, and subsequently salvaged at a scrapyard in Cape Town,” Miller said.

“Our assessor managed to locate the NaTIS registration … and via chassis number input on the Ace website search confirm that this was indeed the same vehicle.

“Closer investigation found it had been bought from auction, and within 60 days it was restored and reintroduced onto the road, eventually being bought by the current unsuspecting owner,” Miller said.

Sambra entered the vehicle’s details on VIN-Lookup, but its status did not reflect.

“So, until we have Code 2 uneconomical-vehicle-to-repair data, the problem will persist,” Viljoen said.

Original Article - Moonstone

Scam alert — safeguard your emails and be wary of SMS verifications

Thu, 17 Aug 2023 08:06:24 GMT

Scams abound in an environment where everyone is under severe financial pressure. The Financial Advisory and Intermediary Services Ombud has warned about two new trends.

The first scam trend is a type of phishing scam, where criminals intercept legitimate emails resulting in payments being made to them rather than the rightful recipients.

The office of the Financial Advisory and Intermediary Services (Fais) Ombud reports it has received several complaints of this nature. In one of the most recent complaints, the consumer had lodged a building insurance claim following a storm. However, fraudsters intercepted an email thread including a conversation about an insurance payout of about R53,000.

The imposter then sent an agreement of loss form to the insurance broker and instructed the broker to redirect the payment from the client’s regular bank account to an alternative account (the fraudster’s account).

Steps to avoid email hacking :

Create strong, unique passwords for your email accounts and other online platforms. Avoid using easily guessable information such as your name or birthdate.
Always be cautious when receiving emails, especially those requesting sensitive information or financial transactions. If you receive an email requesting financial transactions or sensitive information, verify the authenticity of the request by contacting the sender through a known and trusted communication channel.
Keep your devices and security software up to date to protect against known vulnerabilities and malware. If you receive an email seeking financial transactions or suspect that your email has been hacked, notify your email provider and follow their instructions.
Implement strict verification procedures for any changes in customer information or payment instructions. This can include confirming such requests through phone calls or in-person meetings.
Look out for unusual email addresses, grammatical errors and unexpected attachments or links in your correspondence with the complainant.

Fraudulent funeral policies

The second scam trend, albeit one that has been around for years, involves fraudulent funeral policies. Unlike most life insurance policies, funeral policies do not require medical underwriting tests.

“The perpetrators of these fraudulent policies employ several scams to lure unsuspecting consumers,” the ombud warns.

For example, you might be asked to complete an application for a food voucher, or to enter a competition, or simply to obtain a no-obligation quotation. Assurances are provided that no policy will be issued without you first receiving a phone call from the product provider to confirm the application.

The ombud says these encounters typically take place at a mall or some other public location and your personal information is used to complete the application form. In addition, you will be told to verify an SMS that is sent to your mobile phone, to verify your account details. However, by doing so, you will inadvertently complete a DebiCheck (debit order) process that allows a debit order to be put in place to collect premiums for a policy you didn’t ask for.

In addition to having authorised a funeral policy you didn’t want, the beneficiaries of this fraudulently obtained policy are the criminals and not likely to be anyone you know. The ombud’s office further warns that targeted individuals are mostly unemployed laypeople who are unlikely to comprehend the seriousness of the encounter and the subsequent SMS link which is sent to authorise the debit order.

“The policy is usually active for a few months before the person becomes aware and cancels the policy, requesting a refund without success. The client is then told that an application form was completed by them, and they provided authority to debit the bank account. Therefore, there is no valid basis for a claim of fraud or for a refund of the deducted premiums,” says the Fais ombud, advocate Nonku Tshombe.

Before Going Solar: What You Need to Know When Choosing Installers and Equipment

Fri, 04 Aug 2023 09:34:56 GMT

A major South African bank and financial services group has cautioned homeowners who want to make the move to solar to do their homework before investing thousands of rands.

According to Standard Bank, insurers have started to see “a rise in unqualified and inexperienced solar installers, leaving households with a power solution that doesn’t work, structural damage to the home due to defective design and workmanship, or costly repairs that are not covered by homeowners’ insurance policies”.

The warning follows an alert issued by the Consumer Goods and Services Ombud (CGSO) which noted a rise in the number of complaints about solar systems and generators.

In a media statement dated 21 February, the CGSO said it had observed an uptick in the number of complaints relating to the purchase and installation of solar systems and generators. For the 12-month period from 1 February 2022 to 9 February 2023, the CGSO received 202 complaints relating to solar systems and generators. Of these cases, 46% had to be terminated “owing to a lack of co-operation from suppliers”.

The top complaint was the non-issuance of a certificate of compliance (CoC).

“This includes not disclosing the criteria that need to be met for a compliance certificate to be issued, or that an additional fee will need to be paid,” CGSO stated.

Understanding the role of the CoC

Municipalities and insurers require all solar photovoltaic (PV) and/or battery systems to be installed by a competent installer who must provide a CoC.

De Wet Taljaard, technical specialist: solar energy, at the South African Photovoltaic Industry Association (Sapvia), says a CoC is a regulatory requirement for all electrical systems.

The Occupational Health and Safety Act, Electrical Installation Regulations (EIR), state that no person other than a registered person may issue a CoC.

Taljaard explains that the CoC is a declaration by the registered person that the installation complies with the relevant national installation standard (in this case, SANS 10142) – the national low-voltage wiring guide.

“This wiring guide does not speak to installation quality, only to minimum installation and electrical safety standards.”

He says if a loss is incurred by the homeowner because an installation is non-compliant, there are well-defined recourse mechanisms in terms of the EIR.

In the case of a dispute regarding the compliance or non-compliance of a system, an Authorised Inspection Authority (AIA) must perform an audit under the instruction of the chief inspector or upon the request of the homeowner. The AIA will produce an audit report that can serve as evidence in the arbitration or litigation process.

“Thus, the purpose of the CoC is to transfer the risk to the registered person, and away from the homeowner and/or the financier of the project,” Taljaard says.

Cover all your bases

Something else to consider is whether the installer has appropriate insurance cover in place, such as a contractor’s all risks (CAR) policy for the installations.

CAR is a non-standard insurance policy that provides coverage for property damage and third-party injury or damage claims, the two primary types of risks on construction projects.

Taljaard says many contractors also provide a 12-month workmanship warranty post installation.

Dr Hardy Ncube, head of personal products at Standard Bank Insurance, says that, as with other areas in the home, insurers do not cover faulty equipment, defective design, or non-compliant installation.

Ncube says, when it comes to getting cover against unforeseen loss or damage caused by “specific perils” (such as fire, lightning, storm, or theft) post installation, solar systems would normally be covered under homeowners/building insurance because it forms part of the fixtures and fittings of the property.

“It is important that the client consults their insurer or broker to obtain the correct advice, understand the policy terms and conditions, and ensure they are correctly insured,” he says.

As part of the process, an insurer will typically ask homeowners to provide a CoC; an invoice detailing the brand, size, type and number of solar panels, inverters, and batteries; municipal approval where required; and sometimes a structural engineer’s certificate to ensure the sound condition of the roof and its ability to carry the weight of the solar panels.

Finding an accredited solar provider

Sapvia reviewed its current registration system and created the PV Green Card assessment (pvgreencard.co.za) as a form of accreditation to assist in identifying qualified and trained installers.

Besides doing technical qualification checks, Ncube recommends that consumers conduct online searches of each installer and assess reviews of their service by previous clients to ensure they are experienced and reputable.

“It’s also essential to confirm that a registered electrician will be used to connect the system to the main distribution board and that the required CoC will be issued,” he says.

Notably, a reputable solar installer will conduct a site visit to assess the condition of the roof and property before finalising a quotation, says Ncube, and this should always offer a workmanship warranty.

Do your product research

Ncube warns that the high demand for solar in South Africa has seen a flood of sub-standard equipment into the market. He suggests doing online research as well as ensuring that the products offered are backed by appropriate manufacturers’ warranties or guarantees and the company carries the relevant licences or accreditation to instal.

“While the prices of these components may look attractive, the long-term costs of inefficiency, failure, and electrical and fire hazards make this a route to avoid,” he says.

According to Taljaard, the fact that there is no national compulsory specification for inverters has made the barrier to entry lower than it should be.

“However, there are national equipment standards for solar PV panels SANS 61215 (for poly and mono crystalline) or SANS 61646 (for thin-film) that currently form part of the national low voltage wiring guide, and for solar PV cables SANS 62930, that will soon be incorporated into SANS 10142,” he says.

Taljaard advises that homeowners should look for PV panels from Tier 1 suppliers.

“The Tier 1 rating speaks to the quality and after-sales support, including warranty support.”

When purchasing an inverter, Taljaard says homeowners should explicitly ask for inverters that are NRS 097-2-1 certified or listed on the City of Cape Town’s approved inverter list.

“NRS 097-2-1 is a national safety specification for inverters. The City’s list represents a convenient collection of inverters that comply with the NRS requirements.”

As for batteries. homeowners should look for batteries that comply with international standards specifically:

IEC 60086-1:2021 Primary batteries – Part 1: General
IEC 60086-2:2021 Primary batteries – Part 2: Physical and electrical specifications
IEC 60086-4:2021 Primary batteries – Part 4: Safety of lithium batteries
TUV SUD certification (or similar testing partner certification)

Maintenance is key

Wear and tear is a standard exclusion in policies. Ncube says damage resulting from wear and tear, and/or a lack of maintenance is not covered.

He says homeowners need to ensure the solar system or equipment is regularly maintained in line with the manufacturer’s requirements.

“This extends beyond the solar system and is applicable to the entire building or structure. Homeowners are encouraged to prioritise the maintenance of their home. Neglecting to regularly maintain their home can ultimately lead to costly repairs and claims not being paid out.” he says.

Taljaard also emphasises the importance of annual electrical, mechanical and roof inspections to ensure the effective functioning of solar systems.

He explains a mechanical inspection of roof-mounted PV panels, cables, and mounting structure is needed to confirm the adequate fixing of panels and cables to withstand wind load conditions.

An electrical inspection will determine the electrical safety of the system and ensure that the system performs as designed.

Roof inspections are necessary to prevent the build-up of debris, organic or otherwise, beneath panels that can result in damage, moisture build-up, and potentially pose a fire hazard.

“Finally, panels should be washed at least annually to ensure that the system performs as designed. All inspection and maintenance procedures should strictly be carried out according to the equipment manufacturer’s specifications to avoid any warranty claim disputes,” Taljaard says.

Original Article - Moonstone

How smart insurance stops cybercriminals in their tracks

Thu, 03 Aug 2023 09:19:53 GMT

There are good reasons why cybercrime is keeping insurance brokers, insurers, reinsurers and underwriting managers (UMAs) awake at night. In fact, this criminal activity has grown to such an extent that its ‘cost to the global economy’ now slots into third place on a ranking of country’s by annual GDP: first, United States; second China; and third, cybercrime! This staggering development was shared by Ryan van de Coolwijk, Product Head: Cyber Insurance at ITOO Special Risks, during his presentation to the South African Underwriting Managers’ Association (SAUMA) 2023 Virtual Conference.

Cybercrime set to eclipse NATCAT

“The cost [to businesses and individuals] of cybercrime is growing exponentially; and set to peak at over USD10.5 trillion in 2025,” Van de Coolwijk said, citing an estimate by Cybersecurity Ventures. “From an insurance perspective it is quite frightening that cybercrime is predicted to cost more each year than what natural disasters do”.

There are two main categories of cybercrime that impact the domestic market, namely business email compromise (BEC) and ransomware, with the latter often leading to full-blown cyber extortion. In keeping with international trends, BEC is the most common cause of cyber claims at ITOO, with ransomware-related cyber extortion in second place. BEC involves a hacker obtaining unauthorised access to an electronic mailbox and then manipulating documents to entice individuals at a firm to share their credentials, or make payment to an incorrect bank account, among other crimes.

Statistics from Mimecast illustrate the extent of the problem. In their ‘State of Email Security 2022’ report, they revealed that more than half of the South African companies surveyed had been impacted by a ransomware attack, and that 92% of companies has been targeted by email-based phishing attacks. Van de Coolwijk commented that the latter statistic was probably closer to 100%. “Who among the audience has not, either personally or in your professional capacity, received some form of phishing email, SMS or voice call trying to encourage some sort of behaviour?” he asked. Against this backdrop, Mimecast reported that 56% of respondents felt that cyber insurance was a worthwhile addition to their cyber security armoury.

Skepticism over cyber insurance

“There is still some scepticism over cyber insurance,” Van de Coolwijk said; but this will change as more people become aware of how cyber insurance performs for insureds who fall victim to cyberattack. The Mimecast survey also revealed that 72% of local firms felt they needed to spend more on cybersecurity, with the aggregate being a 13.5% budget increase. “It is difficult for businesses that are already struggling to make ends meet to find this money; [the consequence is] that they potentially leave themselves exposed to cyber incidents,” he said. This revelation should be read in the context of average ransomware demands topping ZAR35 million in 2021, and the average ransom paid exceeding ZAR8.5 million.

To make matter worse, there has been a significant year-on-year increase in cases where hackers post victims’ data on so-called ‘leak’ sites on the dark web. “Reviewing the claims that we have had over the last three years, there is hardly a single instance where the hackers did not post [data] on to one of the leak sites,” Van de Coolwijk said. And the cybercriminals have no boundaries, with documented cases of extortionists contacting the press to ‘spread the bad news’ and thereby put additional pressure on businesses to settle, or even telephoning company CEOs at all hours of the day or night to create tension. Cyber extortion “is a very nasty process to go through, and one of the benefits a cyber insurance policy brings is having access to experts to help you deal with this”.

Be warned: these hackers will be back for more

Local digital forensic firm Cyanre recently published statistics based on their investigation of 58 large BEC attacks that took place in South Africa over the past few years. They pointed out that financial services firms (31%) were the most commonly compromised locally, with insurance firms (12%) and IT firms (10%) also popular targets. Among a sea of alarming statistics, they indicated that around 7% of companies suffered a second attack within a two-year window. Of particular concern is that more than 8% of companies that suffered a breach were compromised from an external IT service provider. “As soon as you open up access to data and your environment to a third party, you are exposed to how good [or poor] their security is,” Van de Coolwijk said.

ITOO mentioned a case in which a third-party IT supplier was compromised by hackers, who then proceeded to drop ransomware on and / or compromise data at 20 of the IT supplier’s clients! It has become common practise for hackers to seek out footholds from which they can easily launch multiple attacks. According to Cyanre, common ‘points of compromise’ include easily ‘guessable’ passwords (44%); outdated firewall patches (23%); poorly configured firewall rules (21%); and unsecured RDP structure (15%). Outdated anti-virus software was the laggard in this list, contributing to just 13% of compromises in the study. The good news is that you can take out insurance cover to protect your commercial clients from a range of cybercrime risks.

Getting to grips with cyber insurance

At its basic level, cyber insurance covers the resultant costs and damages from a privacy or network security breach. It can be structured to offer comprehensive first-party, being the insured, and third-party coverages, including expert incident response. “This cover is a lot broader than people typically think … it goes beyond hacking to include insider and privilege misuse; physical theft and loss; and various threats posed by third-party access,” Van de Coolwijk said. There are a range of triggers for cyber insurance policies; but where coverage is concerned you need only consider three main pillars: incident response; financial impact; and liability.

Borrowing from the presentation slides, we can summarise the components under incident response cover as incident triage; data and system recovery; forensic investigations; legal guidance; crisis management; notification costs; remediation services; and cyber extortion. Financial impact cover consists of business interruption (BI); increased cost of working; and regulatory fines and penalties. And finally, liability deals with defence and settlement; compromised data; compromised environments that are used to cause damage to others; and digital media liability. This is where the broker adds value; though it is clear that you will have to work closely with your UMA and / or insurer to ensure that you clearly communicate the standard cover, optional covers, exclusions and limitations of this cover to your clients.

Five ways to thwart cyberattack

To conclude, ITOO shared five tips to prevent your cyber insurance policy from being triggered. “These are controls that will not necessarily break the bank,” Van de Coolwijk said. They include implementing multi-factor authentication and complex passwords; resilience, through the use of immutable and disconnected back-ups; patching, to ensure that your firm’s software is up-to-date; endpoint protection, or next generation anti-virus solutions; and the so-called human firewall, involving education and training to ensure that your employees are a first line of defence against cybercrime.

Writer’s thoughts:

The rising frequency and severity of cybercrimes such as business email compromise (BEC) and ransomware present both financial and reputational risks to your small and medium enterprise (SME) clients.

Original Article - FA News

Directors and officers still unprepared, despite increasing risks

Wed, 02 Aug 2023 08:25:35 GMT

An international study reveals almost half of small businesses choose not to purchase executive risk coverage like D&O, EPL and Fiduciary Liability, and the most common reason mentioned was that they believe they are too small to need it.

Are directors and officers still unprepared, despite increasing risks? FAnews spoke to Kim Rew, Partner at Webber Wentzel, Matt Williams, Candidate Attorney at Webber Wentzel and Tebogo Leshilo, Underwriting Head of Complex Financial Lines at SHA Risk Specialists about this and the risk trends directors and officers need to watch in 2023.

Directors' fiduciary duties

Directors, according to Rew and Williams, can be held liable, among other things, for breaches of their fiduciary duties or for the negligent performance of their duties. Generally, directors are subject to fiduciary duties of good faith, honesty, and loyalty.

“Directors' fiduciary duties are embodied in the common law and have also been partially codified in the Companies Act, 2008. However, their common law fiduciary duties are not stagnant. They evolve to respond to the changing business environment. In addition, the judicial interpretation of whether a director's conduct was negligent and wrongful for purposes of delictual liability will also vary, depending on the convictions of society,” they said.

A false sense of security

“A 2020 broker survey conducted by SHA revealed a low purchase rate with results showing that less than 20% of small businesses purchase D&O cover. This leaves significant room for growth of D&O purchases, especially given the current pressures facing businesses such as threatening bankruptcy and liquidation, governance failures and increased M&A activity. Results of a 2022 SHA survey of small businesses showed that 22% of local directors did not have a good understanding of D&O exposures. This highlights a need to increase training and awareness regarding corporate governance and obligations of directors and officers as well as senior leaders in business,” said Leshilo.

According to Leshilo, “should they breach their fiduciary duties and cause harm to either the company or stakeholders said directors and officers can be held liable in their personal capacity for the breach. Note that these liabilities may extend to the personal assets of their spouses and estates. It is, therefore, a misconception and a false sense of security that small businesses do not need D&O insurance.”

“The sources of D&O claims may arise from a variety of sources, ranging from shareholders, employees, customers, creditors, vendors, competitors, and regulators. The breadth of this cover sees directors and officers potentially exposed to a wide range of allegations of wrongdoing, including but not limited to i) anti-competitive behaviour, ii) misrepresentations and misleading statements, iii) breach of laws and regulations and iv) failures to perform due diligence around business transactions,” she added.

The purchase of D&O insurance, as well as the management of key risks that may lead to D&O claims, ought to be an important focus for small companies, said Leshilo.

Risk trends in 2023

According to Leshilo, increased awareness and activism globally around Environmental, Social, and Governance (ESG) issues has seen senior leaders and directors and officers held accountable, by employees, stakeholders, regulators, and the public, for upholding their companies’ commitments to environmental and social initiatives. “A strong ESG framework is a key component of corporate governance; failure to address these matters can be detrimental to their businesses legally, financially, operationally, and reputationally. Regulatory action and litigation can be driven by failures in making adequate disclosures or misrepresenting topics such as diversity and inclusion, human rights violations, and climate change.”

“Global concerns such as supply chain weaknesses, the war in Russia, increased inflation and stock volatility will impact the overall macroeconomic environment. This, combined with local factors such as load shedding, political failures and the increased chance for business rescue and liquidations will see many businesses operating under distress (global and economic uncertainty). Directors face the pressures of managing and adjusting their strategy and operations to navigate businesses through the current climate,” she added.

“Boards of directors can no longer afford to sideline the management of cybersecurity risk as we continue to see an increase in the frequency of cyber incidents across various business sectors. A cyber breach can potentially close the company down while introducing significant reputational risk, financial loss and the potential for regulatory fines. Failures to take the requisite steps in overseeing a robust cyber security risk management strategy, where adequate controls are implemented to detect and prevent and manage cyber-attacks, will see directors in breach of their fiduciary duties and lead to a rise in D&O claims. The board of directors has a further fiduciary duty to comply with data protection and privacy regulations in the face of rising cybercrime levels,” continued Leshilo.

For Rew and Williams, fraud and corruption are at the forefront. “The judicial commission of inquiry into state capture unveiled rampant fraud and corruption across South Africa, in both the public and private sectors. This type of business environment poses several risks for directors in terms of breaches of their fiduciary duties, delictual liability and criminal liability.”

“A director who has knowledge of fraud or corruption which affects the company has a duty to disclose that information to the board at the earliest practicable opportunity. A failure to disclose it amounts to a breach of the director's fiduciary duty, which entails the director's liability to the company. In addition, a director who has knowledge of fraud or corruption involving R100 000 or more has a duty in terms of the Prevention and Combatting of Corrupt Activities Act, 2004, to report the information to the Hawks. A director who fails to comply with this reporting obligation commits a criminal offence,” they added.

“However, after-the-fact reporting may not be enough to reduce civil liability risk. When a director has failed to ensure appropriate procedures and safeguards are in place within the company to mitigate, among other things, fraud, corruption and money laundering, and such failure has caused the company loss, the director could be held liable in delict for that loss, provided all the elements of delictual liability are satisfied,” they continued.

Still unprepared, despite increasing risks

As Rew and Williams mentioned at the beginning of this article, fiduciary duties evolve to respond to the changing business environment.

Leshilo added that the existing misconceptions about the need to purchase D&O insurance by small businesses, together with the ever-changing business landscape in which they operate certainly gives credence to a measure of unpreparedness in directors adequately managing all exposures which present in their business.

“One of the keys to managing these exposures lies in the ability to attract qualified and experienced directors who are able to effectively execute their fiduciary duties. Directors and officers ought to be well-informed about the business, its competitive and regulatory environment, and the legal landscape in which it operates. In the event that there may be limited resources and knowledge; businesses should invest in engaging experts to support their decision making. Managing these business risks and exposures internally may see small businesses benefit from the recruitment of more qualified and talented outside directors, improved corporate decision making and better governance practices. This, together with the addition of a D&O policy as a form of risk transfer, will see a robust risk management plan in place to provide increased measures to protect both the company balance sheet and personal assets of director and officers,” concluded Leshilo.

Writer’s Thoughts

With the ever-changing business landscape, it is a misconception that small businesses do not need D&O insurance. As fiduciary duties evolve to respond to the changing business environment it is imperative that directors have a good understanding of D&O exposures and proper risk management strategies in place. Do you agree?

Original Article - FA News

There’s a new tactic used by criminals to steal cars in South Africa – here’s what you need to know

Fri, 28 Jul 2023 07:30:16 GMT

As cars have evolved with new features and tech, criminals have found a new way to use these hi-tech advancements to their advantage.

South Africa is well known for its prolific hijacking and vehicle theft numbers, with many security companies having to report on high-risk vehicles and tips to avoid the latest trends used by criminals.

Official crime statistics showed that reported carjackings were up 8% in 2022/23, recording 22,742 cases (2021/22: 20,976).

Duma Ngcobo, Chief Operations Officer at Tracker, expressed concern as the number of vehicles stolen from over 1.1 million Tracker-installed cars continues to climb yearly.

Incidents have increased by 13% from the previous year. Incidents in Gauteng have risen by more than 18%, with the largest contributors being vehicle theft and hijacking, up 22% and 15%, respectively.

According to the latest SAPS crime data , theft of vehicles is far more prevalent than carjackings, with 37,426 cases recorded in 2022/23.

From 1 January to 31 March 2023, 5,119 cars were stolen, equating to approximately 57 cars being stolen in the country every day.

New tactic

Vehicle crime is a reality in South Africa, and while you might think that having a car with the latest high-end security features protects you, this is not necessarily the case as car thieves have become increasingly tech-savvy.

According to MotorHappy , the very sensors, computers, and data aggregation systems that were created to protect cars are now being used to steal cars.

Most modern cars include an internet connection for features such as over-the-air software updates and in-cabin Wi-Fi.

This also allows the Electronic Control Modules (ECMs) to remotely manage the engine, transmission, powertrain, brakes, suspension, etc.

However, Hackers are now using this to their advantage – stealing cars by tracking the car’s credentials and data via the internet.

“ It allows them to bypass security, track the exact location of the vehicle, and create a false key signal (key cloning), allowing them to easily gain access to the car ,” it said.

This development in ways of stealing cars stemmed from the recently popular method of hacking a vehicle’s keyless-entry system (KES).

According to TopAuto, this method has become so popular among car thieves that Toyota created several enhanced safety upgrades specifically for vehicles in South Africa to reduce the chances of their KES being compromised.

MotorHappy said that keyless cars are often stolen through a technique known as relay hacking. This involves criminals intercepting the signal from the original key and transmitting it to a second person who is closer to the car and holding a relay box.

The relay box then sends a message to the vehicle that the key is nearby, causing it to unlock.

Key jamming is a well-known technique in South Africa. This involves intercepting the signal of the fob, which makes it impossible for the car owner to lock their car, making it easier for thieves to gain access.

How to avoid becoming a victim

According to MotorHappy, motorists can avoid becoming a victim of these new criminal tactics by considering the following:

Use signal-blocking cases (like a Faraday pouch);
Using a simple steering wheel lock will ensure your car stays put;
Check the doors of your car manually so that you are sure that the doors have been locked to avoid the chances of key jamming theft;
When at home, store your car key as far away from your car as possible to minimise the possibility of amplifying the key fob signal;
Install an extra immobiliser or alarm;
Regularly update your car’s security software, as most vehicle manufacturers are constantly introducing new tactics to stay one step ahead of thieves.

Original Article - Business Tech

House fires – 14 must read safety tips

Wed, 12 Jul 2023 08:22:44 GMT

As winter tightens its icy grip on South Africa and consumers continue to explore power source alternatives amid rolling power blackouts, it brings with it the increased risk of house fires – again emphasising the importance of insurance and ensuring that your home is equipped with well-maintained and regularly tested fire protection equipment.

One of the biggest concerns around house fires is the belief that ‘it can never happen to me’,” says Ricardo Coetzee, Head of Auto & General Insurance, “The fact is that it can and will if you let your guard down. To prevent house fires, homeowners must ensure that all heating equipment is properly maintained and fit for the job.”

The main causes of house fires include:

Fireplace-related incidents, many of them due to poor maintenance.
Heaters, stoves, irons, electrical blankets and other electrical equipment left on or unattended.
Candles left unattended or left burning near curtains.
Leaking gas heaters or stoves.
An overheating computer that ignites.
Cell phone chargers left unattended for long periods of time.
Electrical overload on one power source.
Children who play with matches or lighters near flammable objects.
Falling asleep with a lit cigarette in bed.

Auto & General Insurance shares the following tips to prevent home fires:

Make sure that appliances and other devices that generate heat, as well as their wiring, are in a good, safe working order. Improperly installed heating devices have been the cause of numerous deaths in South Africa.
It’s crucial to operate devices within manufacturers’ limits. Setting a device to maximum heat for extended periods of time, not placing a device on a level surface, moving it around whilst in operation or charging a device for longer than recommended, for example, could pose a serious risk.
Take gas bottles to your nearest gas retailer to have them checked for leaks on a regular basis. This includes gas bottles used for heaters, braais and stoves.
Exercise special caution before going to bed at night to make sure that all heat sources are turned off.
Do not overload one single power source.
Make sure that your electronic devices are in a well-ventilated spot to prevent overheating and never charge these devices for longer than the manufacturer’s recommendation.
Unplug and switch off all electrical appliances that are not in use
If you have a gas heater or cook with gas, light the match first, before turning on the gas.
Keep clutter to a minimum in and around your home, as this could add fuel to a fire, and keep flammable materials well away from heat sources.
Teach kids good fire safety principles from a young age.
Install smoke detectors throughout your home
Have fire extinguishers available, specifically near the kitchen. Make sure that you know how to activate and operate it.
Make sure that trip switches and emergency cut-off valves are in good working order.
Have all emergency contact details within easy reach and don’t wait until a fire is out of control before contacting emergency response teams.

“Attention to detail and continued vigilance can save your home and/or the lives of your loved ones, so it’s imperative to not save fire safety discussions for later. In the event that catastrophe does strike, always remember that your life is more important than any possession and that having comprehensive buildings and home contents insurance in place should be non-negotiable.” Coetzee concludes.

Original Article - Daily Maverick

Underinsurance - a key concern

Thu, 15 Jun 2023 08:15:41 GMT

South Africa is no stranger to the devastating losses of weather catastrophes. In the last few years, heavy rainfalls, flooding and wildfires have increased in frequency and intensity.

According to Aon’s 2023 Weather, Climate and Catastrophe Insight report, which identifies global natural disaster and climate trends to help make better decisions to manage volatility and enhance global resilience, natural disasters caused a $313 billion global economic loss during the 12-month period under review - 4 percent above the 21st-century average - $132 billion of which was covered by insurance.

What the study reveals

Data shows that 2022 was the fifth costliest year on record for insurers, with approximately $50-55 billion of the global insured loss total resulting from Hurricane Ian in the United States - the second-costliest natural catastrophe in history from an insurance perspective, surpassed only by Hurricane Katrina in 2005, which resulted in nearly $100 billion in insured losses on a price-inflated basis.

The report also highlights that approximately 31,300 people lost their lives due to global natural catastrophe events in 2022. The total number of fatalities remains below average for now 12 years in a row; however, more than 19,000 of the fatalities were heat-related deaths in Europe alone, primarily as a result of heatwaves.

While a majority of total losses in 2022 were left uninsured, the 58 percent "protection gap" was one of the lowest on record, highlighting a positive shift in how businesses are navigating volatility through risk mitigation, and how insurers are providing further protection to underserved communities through access to capital.

"This report explores the events and costs of catastrophes and natural disasters in 2022 that created a staggering amount of economic loss," said Greg Case, CEO of Aon. "But this data also highlights a tremendous opportunity for us to continue to better serve clients. By working together on scalable solutions, we will not only mitigate risk, but bring together public, private and societal forces to accelerate innovation, protect underserved communities and strengthen the economy."

The Aon study examines resilience and the ability to overcome climate-related consequences – not only for physical risks, but in areas like the health of the workforce, reiterating the need to build multi-faceted strategies that account for climate change risk mitigation on all fronts.

Further findings of the report

Further findings of the 2023 Weather, Climate and Catastrophe Insight report include:

421 notable natural disaster events were recorded in 2022, higher than the 21st century average of 396.
75 percent of global insured losses were recorded in the United States, which was higher than the average of 60 percent.
Windstorm Eunice was the costliest individual European windstorm since 2010, with $3.4 billion in insured losses. Widespread hailstorms in France contributed to the second-highest natural disaster pay-outs for the country on record of €6.9 billion ($7.4 billion).
Droughts and heatwaves severely impacted Europe, the United States, China and other regions and global insurance pay-outs for the drought peril were the second highest on record, at $12.6 billion globally.
Flood losses in Australia broke the historical record as La Niña conditions persisted for a third year and Sydney recorded the highest annual rainfall.
Monsoonal floods in Pakistan had a far-reaching humanitarian impact on the country. In a summary of the 2022 monsoon season, the Pakistan Meteorological Department noted that country-wide rainfall from July to September was 175 percent above average.
Both severe drought conditions and a prolonged rainy season in different regions of Latin America reduced agricultural crop yield across the region.

"The devastation that disasters caused around the world demonstrate the need for wider adoption of risk mitigation strategies, including better disaster management and warning systems that improve resilience," said Michal Lörinc, head of Catastrophe Insight at Aon. "While impacts of climate change become increasingly visible around the world, it is the socioeconomic aspects, demographics and wealth distribution that remain a major driver of financial loss. Data in this report will help guide organizations to not only enhance their own risk mitigation but take action to close the protection gap globally to better protect the communities in which we live and work."

According to Aon, underinsurance remains a key concern in the face of climate risks, especially when it comes to outright and severe losses which typically follow weather catastrophes like flood and fire. This trend is likely to come under increasing strain in a tough economic environment where costs are under scrutiny. The impact of an outright uninsured or even underinsured loss of a home and other assets can have severe financial and personal consequences.

Underinsurance and personal assets

“The trend of properties and assets being underinsured for their replacement costs was starkly highlighted in the devastating Knysna fires of 2017, and it’s a trend we see continuing as more households face serious financial constraints in the current economy,” explains Mandy Barrett of Aon South Africa, a global professional services firm and insurance broker.

“Many homeowners have not revisited the sums insured on their most valuable for many years, rendering the cover of these big-ticket items woefully inadequate in the face of an outright loss. Another trend we are seeing is that homeowners who have settled their bond account are opting not to insure their buildings in an attempt to cut costs. Many homeowners who live in security estates are reducing cover on their contents on the assumption that they are not at risk for theft or robbery, underestimating other critical risks such as fire and flood. What many people do not realise is that fire claims are one of the most common large loss claims - and most likely to end in an outright or catastrophic loss, with little if anything, that is salvageable. Similarly, the recent floods have demonstrated how entire homes and everything inside have been swept away, or disappeared under landslides,” she adds.

Underinsurance occurs when the insurance cover in terms of sum insured on your policy is not sufficient to cover the full cost of a potential claim and does not reflect the actual replacement value at today’s prices. The R500k home you bought 20 years ago is likely to be worth five times that amount today to replace. If you are underinsured in the event of a loss, you’re essentially taking the risk of the uninsured portion upon yourself. You may be paid partially for any loss at claims stage due to the average formula being applied. It means that if your property is underinsured by 50%, for example, then you may only be paid out half of your claim, regardless of whether it is a partial or total loss.

Advise clients to review covers

Having a solid understanding of the implications of underinsurance is crucial at a time when many South Africans are financially strained and looking for ways to save on household costs.

Original Article: FaNews

SA faces alarming rise in carjackings

Fri, 09 Jun 2023 06:55:11 GMT

Over 5,000 vehicles hijacked in 3 months

In the first quarter of 2023, South Africa experienced a slight decrease in car hijackings compared to the same period in the previous year, but there was a noticeable increase in certain provinces and a rising trend in month-on-month carjackings. The South African Police Service reported a total of 5,119 car hijackings during the three-month period, which translates to approximately 57 cars stolen daily. Specific hotspots for car hijackings were identified in each province. Hijackers primarily employed methods such as driveway hijackings, bogus blue-light cops, the blockage method, the ‘tap tap’ trap, and the good Samaritan tactic. Toyota models, particularly the Polo, Hilux, Etios, Fortuner, and Nissan NP200, were the most targeted vehicles in these incidents. Sedans, hatchbacks, coupes, and bakkies constituted a significant portion of the hijacked cars.

These provinces have seen a big spike in hijackings in South Africa – hotspot areas and cars being targeted

While South Africa has seen a slight decrease in hijackings year-on-year, some provinces experienced a big jump in hijackings – while the month-on-month data shows an upward trend in the number of carjackings.

Presenting the latest quarterly crime statistics for the second quarter of the year – 1 January to 31 March 2023 – the South African Police Service (SAPS) noted that 5,119 cars were hijacked over the three-month period.

This equates to approximately 57 cars being stolen in the country every day.

While 5,119 hijackings in the first three months of 2023 is a decline of 5.2% compared to the same period in 2022, month-on-month data shows that carjackings increased by 14% over the last month of the fourth quarter to 1,842 in March from 1,614 in February.

According to the SAPS, two provinces experienced a notable year-on-year increase (>20%) in hijackings – these being the Northern Cape (37.5%) and North West (23%) – while the Free State toed the line at 19%.

Interestingly, Gauteng saw a 12.4% decrease in carjackings, followed by Mpumalanga (-12.2%) and Kwa-Zulu Natal (-1.9%), while the Western Cape saw an increase of 7.4%.

Despite the positive stats for Gauteng, carjackings are most prevalent in South Africa’s most populous regions, such as Gauteng, KwaZulu Natal, and the Western Cape.

Gauteng saw 2,573 hijackings, representing 50.3% of all carjackings in Q4 2022/23. Kwa-Zulu Natal experienced 859 carjackings, and the Western Cape saw 624.

Looking at more granular station data, though, the Western Cape has the most hijackings per region, with Nyanga in the province having the most cases – and seeing an increase of 93.3% over the last year.

In Gauteng, Jeppe has the highest reported cases, though Vosloorus has seen a considerable increase, with the number of cases more than doubling.

The top five hijacking hotspots for the three most populated provinces are listed below.

Gauteng:

Jeppe
Moroka
Midrand
Sandringham
Orange Farms

Kwa-Zulu Natal:

Umlazi
Mariannhill
Ntuzuma
Inanda
Bhekithemba

Western Cape:

Nyanga
Harare
Philippi East
Lingelethu-West
Samora Machel

Trends to watch out for

Fidelity Services group CEO Wahl Bartmann also noted that hijacking cases had eased slightly within the group’s footprint in the first three months of 2023.

However, he added that this does not mean hijackings are no longer at alarming levels, as the group highlighted two prevalent hijacking methods that remain popular for car thieves in 2023.

These are driveway hijackings and bogus blue-light cops . These are especially true for truck hijackings, said Bartmann.

Victims are easy targets in their driveway as they wait for the gate to open or close, allowing criminals to box them in when entering or exiting their property.

Bartmann said if a motorist suspects they are being followed, they should put their indicator on and slow down at least two to three houses before their home.

To avoid bogus blue-light cops, Bartmann added that motorists should stay off known routes and highways targeted by these syndicates, especially at night.

If stopped by any cop, the executive recommends that motorists turn their lights on bright and activate their hazards to attract the attention of any passers-by.

Other notable trends flagged by Cartrack and used by hijackers include:

The blockage method – Hijackers ambush unsuspecting motorists or even delivery persons in drive-throughs of fast food establishments, where they have little room for escape and are forced to comply with demands. There are usually two vehicles involved. One car will be in front of a motorist, and another car will be behind them to block them from reversing. Armed suspects from the vehicle in front will try to force the motorist out of their car and then make a getaway.
The ‘tap tap’ trap – Criminals will deliberately drive into or ‘tap’ the back of your car in traffic. Motorists are then hijacked when they get out of the vehicle to assess the damage; and
The good samaritan – Perpetrators convince targets that something is wrong with their vehicle at traffic lights, and they are then hijacked when they get out of the car to see what’s ‘wrong’ with the vehicle.

Concerningly, Bartmann added that kidnappings – drivers being taken along with the car – continue to feature in some hijacking incidents.

Targeted vehicles

According to Fidelity ADT’s latest statistics, Toyota models remain the most targeted cars in South Africa, accounting for 31.6% of the group’s incidences.

Toyota is followed by Volkswagen (VW) – accounting for 14.1% – and Ford, representing 10.4% of the group’s incidences.

Of these brands, Bartmann noted the following models are high-risk:

VW Polo – accounting for 8.6% of reported thefts;
Toyota Hilux (6.8%);
Toyota Etios (4.8%);
Ford ranger (4.9%);
Toyota Fortuner (4.6%); and
Nissan NP200 (4.2%)

Bartmann said that Toyota Prados and Toyota Landcruisers are also among the most popular models for criminals. However, Hilux and Fortuner GD6 models are still preferred.

This trend of targeting popular hatchbacks and bakkies highlighted by Fidelity ADT is also evident in the SAPS report, which showed that Sedans, hatchbacks, and coupes accounted for 2,480 of the vehicles hijacked, followed by bakkies with accounted for 1,493.

These vehicle segments represented 48.5% and 29.2% of all the hijacked cars in the first three months of 2023.

Original Article: Biz News

Car theft is getting high tech, and most new vehicles are vulnerable

Mon, 05 Jun 2023 12:07:16 GMT

Car theft is on the rise , according to AA Insurance Services [in the UK]. Worryingly, thieves are increasingly using high-tech tools to target weaknesses in the same sensors and computerised systems that were designed to help make our journeys safer and more comfortable.

In fact, as the market research company Technavio , noted in 2017, the significant growth of the automotive electronics sector was driven specifically by the need for added driver convenience and concerns about car theft.

So, it’s a sobering thought that these same sensors, computers and data aggregation systems are what criminals now use to steal cars.

The convenience offered by the keyless entry system (KES), is one such example. KES enables drivers to passively lock, unlock, start and stop the engine by simply carrying the key fob along with its integrated signal transmitter.

The basic function of the system is for the car to detect the signal from the fob.

If the signal is strong enough, generally when the fob is within one metre of the car, it will unlock and allow the engine to start, usually using a push-button system.

Attacks on the KES typically use a method of amplifying and relaying the signal from the fob to the car. This “tricks” the car’s system into thinking that the fob is within one metre, and the system disarms.

Owners can attempt to prevent relay attacks of this type by storing their fobs in “ Faraday pouches ” when not in use. These pouches have conductive fibres in their lining that disrupt radio signals and are not very expensive.

Control modules

It’s also worth noting that the computers in our cars’ multiple Electronic Control Modules (ECMs) manage everything from the engine, transmission and powertrain — all the components that push the car forward — to the brakes and suspension.

All of these ECMs are programmed with large volumes of computer code, which, unfortunately, can contain vulnerabilities.

In order to try and mitigate against such vulnerabilities, international safety standards like the SAE J3061 and ISO/SAE 21434 aim to guide manufacturers with regard to secure code development and testing.

Regrettably, with such a large number of interconnected and complex systems, as well as the production deadlines and shareholders’ expectations that car companies have to deal with, vulnerabilities could still escape detection.

Car thieves have still managed to gain access to cars’ electronic control units (ECUs), and even the on-board diagnostics ports, in order to bypass security.

These ports are small computer interfaces located on most cars that provide technicians with quick access to a car’s diagnostic system.

This makes servicing faster, as the technician can simply plug into this standardised socket that allows access to all the car’s sensor data in one location. This, in turn, makes fault detection easier as any fault codes can be easily identified and other performance issues detected before they become serious.

It also proves an attractive target for car thieves.

Deceptive damage

Recent reports have shown how car thieves can access ECUs . And even experts aren’t immune.

Ian Tabor, cyber security consultant for the engineering services company EDAG Group, recently experienced what at first appeared to be an instance of pointless vandalism to his Toyota RAV4. However, when the car disappeared, it became clear that the damage had actually been part of a sophisticated car theft operation.

In this instance, car thieves removed the front bumper of Tabor’s car to access the headlight assembly. This was done to access the ECU, which controls the lights. This in turn allowed access to the widely used Controller Area Network (CAN bus). The CAN bus is the main interface designed to allow ECUs to communicate with each other.

In Tabor’s case, accessing the CAN bus allowed the thieves to inject their own messages into the car’s electronics systems. These fake messages were targeted towards the car’s security systems and crafted to make it appear as if a valid key was present.

The result was that the car doors unlocked and allowed the engine to be started and the car to be driven away – all without the key fob. Unlike the relay attack mentioned earlier, this new kind of attack cannot be thwarted by using an inexpensive Faraday pouch because the fob is not needed at all. The signal that the fob would have sent is now generated by the thieves.

To further add to the problem, Tabor’s investigations revealed that the equipment used by the thieves only cost about US$10 (£8). Worse still, the components used can be bought pre-assembled and programmed, so that all a would-be thief needs to do is simply plug into a car’s wiring.

These recent reports showed that the devices were disguised as an old Nokia 3310 phone and a JBL-branded Bluetooth speaker. This means that, at first glance, even if a car thief is stopped and searched, no obvious or conspicuous devices would be found.

As experts have noted, a permanent fix against this type of attack requires car makers or industry bodies to become involved. This would take time. In the meantime, cars vulnerable to this type of attack have no defence. And most new cars are vulnerable.

Original Article

Car owners in South Africa need to get trackers installed – or risk losing their insurance

Thu, 16 Mar 2023 10:48:01 GMT

Old Mutual Insure says that drivers of high-risk vehicles in Gauteng, KwaZulu-Natal and smaller inland provinces need to install vehicle tracking devices or risk losing their insurance coverage.

This follows a rise in the number of insurance claims for certain vehicle types due to theft and hijacking.

The group and its subsidiaries issued a warning specifically to owners of newer and late-model high-end vehicles – especially bakkies and luxury vehicles – as these vehicles are being increasingly targeted in South Africa, it said.

The insurer reported increased claims for these vehicles, with criminals seemingly even being able to bypass keyless entry systems.

“From our investigations, it appears that syndicates have found ways to seamlessly access vehicles with keyless entry systems. The theft rate is particularly high in Gauteng, KwaZulu-Natal, and some of our smaller inland provinces,” the group said.

In an effort to curb the increased risk, Old Mutual Insure and Elite Risk Acceptances now require the fitment of approved early warning/active tracking devices on higher-risk vehicles covered under Commercial Lines, Agri and Personal Lines policies.

Vehicle owners are urged to ensure the fitment of good-quality tracking devices before 15 April 2023 .

The provinces that are affected:

Gauteng
KwaZulu Natal
Limpopo
Free State
Mpumalanga
North-West

This does not apply to vehicles in the:

Western Cape
Eastern Cape
Northern Cape
Botswana
Namibia

“Although it seems like traditional tracking devices are becoming less effective, they still assist in mitigating the risk as they do provide an advantage in the early stages of theft and hijacking,” the group said.

The companies warned that if policyholders do not comply, they will no longer be insured against theft and hijacking.

“We are living in unprecedented times where vehicle syndicates have learnt how to use sophisticated means of technology to access a vehicle. We remain committed to the safety and security of our customers. It would be amiss of us not to take drastic action in this climate,” it said.

Old Mutual Insure and Elite Risk will discount vehicle premiums, if not already discounted, due to the reduced risk, it said.

Tarina Vlok, MD of Elite Risk, a high-net-worth insurer and subsidiary of Old Mutual Insure, said the company is trying to make the process as easy and seamless as possible for policyholders.

“We have partnered with several tracking companies to help clients with high-risk vehicles access tracking and stolen vehicle recovery service,” she said.

However, she noted that it remains the customer’s decision as to which tracking device they wish to fit from an approved list by the insurer.

“We further encourage all policyholders to have a tracking device fitted, regardless of the type of vehicle. It is also imperative that customers regularly check and ensure that their tracking devices are in working order.”

Vlok said that it is also the vehicle owner’s responsibility, amidst this climate, to ensure they are proactive in mitigating the increased risk of theft and hijacking.

The group said that vehicle owners can take to secure their vehicles against theft:

Park your vehicle in well-lit, busy areas. Avoid leaving your car in isolated areas or places with poor visibility.
Install an alarm system or immobilizer, which can deter thieves and prevent them from starting the engine.
Use a steering wheel lock, which can make it more difficult for thieves to drive away with your vehicle.
Consider using a faraday bag for relay/hacking attacks as this blocks the key signal that certain syndicates use to jam vehicle remotes.
Fit more than one tracking device into the vehicle to make it more difficult to steal and easier to recover.

Original Article

The Aftermath of a Tragedy

Tue, 07 Mar 2023 09:24:56 GMT

We are all aware of the tragedy which occurred on 24 December 2022 when a tanker carrying liquefied petroleum gas (LPG) exploded underneath a railway bridge in Boksburg. Whilst our sympathy is with everyone affected by the incident, we have a need to discuss what happened that fateful day, as an example of the unforeseen.

Although we cannot predict incidents of this nature, we all realise accidents do happen, and whilst we should do our best to prevent and mitigate occurrences of this magnitude, it is difficult, if not impossible, to quantify the result.

The question of insurance

We are quick to say, “but we are insured against it”. But are we? Furthermore, what did you do, or did you not do to excuse, prevent, minimise or mitigate any unforeseen loss?

We are not only responsible for our own actions, but also for the actions of our employees. The incident may be a direct action or remote, deliberate or accidental, or the result of not taking action to prevent or mitigate the consequences. Despite the prevailing circumstances, it will result in a loss which in the end will be expressed in monetary terms, quite often recoverable from the entity responsible for the cause.

Whilst insurance cannot undo the incident, it can compensate clients who have a legal claim against the wrongdoer in so much as it is an indemnifiable claim in terms of the policy.

Damage to the property of a person (natural or legal) can be insured and if adequate, the loss and continued suffering resulting from the damage, can be relieved.

However, loss may not be limited to your own property but may spread further to third party injuries or damage to third party property.

Whilst we cannot always foresee an incident by means of insurance, we can in many instances arrange to protect ourselves financially from the consequences of such a loss.

Buy all the protection you can afford

Protection can be obtained for material damage to your own property as well as loss or damage to third party property following an incident for which you may be responsible, including any unexpected loss in income or cost incurred to prevent such loss.

Whilst we can calculate and assess damage to our own property and those for which we are responsible, as well as the possible loss of income, the same does not apply to the loss of or damage to third party property as well as death or bodily injury to third parties. Such loss or damage can be substantial and whilst no one can put a value to it, we should buy as much protection as we can afford.

Unfortunately, we cannot predict the future, nor can we assume an accident will never happen to us. When the unforeseen comes our way, it will be too late to ask ourselves why did we not make the necessary provision to deal with the consequences.

It is also important to take cognisance of the fact that traditional limits of indemnity will not necessarily keep abreast with court awards, legal costs, inflation, and even group or class action suits.

Be sure to align potential risk with indemnity

Beware of personal conduct and that of your employees. Be diligent in calculating your protection for the future. Be careful and prudent when arranging your insurance portfolio and the limits of indemnity you include. Also be sure to check that the indemnity you are purchasing, aligns with the potential exposure and risks that could ruin you financially.

Whilst insurers cannot foresee the future, insurers can mitigate the consequences of the unforeseen because in insurance, the premiums of the many pay for the unfortunate losses of the few.

The reality of the Boksburg tragedy is that it cannot be reversed. The damage has been done and the consequences will result in complicated legal processes which will take many years to unfold. Insurers are likely to be exposed to a considerable amount of loss, damage, and liability that will be unpacked during the investigations to determine exactly how and what happened.

Sadly, a tragedy cannot be reversed nor quantified.

In the context of the unforeseeable, the devastating earthquakes that have recently struck Turkey and Syria are other prime examples of how such disasters have left thousands of people dead and others destitute. So many innocent people have succumbed to their injuries and families have been separated. The physical destruction to property will run into trillions of US Dollars and no time frame of reinstating the damage can be calculated.

What we can surmise from these recent tragedies, is when it comes to loss of life and damage to property, the financial element and or compensation can never be accurately measured, but ultimately, insurance can bring some form of relief to the aggrieved individuals and other parties that have suffered the consequences.

However, when it comes to loss of life, no one can put a price on it.

At Consort, we have the skills and experience to assist you with your requirements when it comes to dealing with the engineering insurance indemnity and guidance for exposures and risks that can leave you in distress or even financial ruin.

Please contact your Broker directly to approach Consort in assisting with your requirements.

Criminals are now going after solar panels in South Africa

Tue, 21 Feb 2023 07:18:24 GMT

A new trend is emerging where criminals are targeting solar panels in South Africa as more homeowners purchase alternative power supplies, says private security group Fidelity ADT.

“Over the past few weeks, we have received reports of solar panels being stolen from properties, typically during the day while homeowners are at work,” it said.

Fidelity ADT said that criminals are continuously shifting and altering their patterns of behaviour, making it increasingly important for homeowners to keep up with security trends.

South African households have imported over R5 billion worth of home solar equipment in the last year, as many seek ways to get away from Eskom and prolonged levels of load shedding.

According to President Cyril Ramaphosa, rooftop solar panels on houses and businesses are going to be a major new source of energy generation in the country, and the government is now working on ways to “unleash” this potential at scale.

The president said that the national government is currently looking at methods of incentivising greater uptake of rooftop solar such as developing a pricing structure for feeding excess power back into the grid, or providing tax breaks and other incentives to speed up the rollout.

Finance minister Encoh Godognwana is expected to provide further details on some of these initiatives during his budget speech this week (22 February).

The renewed interest in solar by homeowners across the country has, however, led to criminals seeking to take advantage, Fidelity ADT said.

“To stay one step ahead of opportunistic criminals, it is important to make your home less of a target by making it as hard as possible for criminals to successfully carry out their plans on your property,” it said.

The group provided the following tips to best keep your home safe:

Ensure that your yard is well-lit at all times.
Always have barrier security installed (electric fence, beams, sensor lights, burglar bars and interior detection).
Lock tools and garden equipment away. Don’t let your stepladder be the means by which criminals get onto your balcony or roof.
Never leave your wheelie bin out overnight, as criminals not only use these to climb on, but they also use them to transport stolen goods.
Cut away excess shrubs and bushes, as this serves as a good hiding spot for criminals.
Always keep your alarm armed. Make use of the different features your alarm offers (i.e. Stay mode, Sleep mode, Away mode).
Join your local neighbourhood watch and street WhatsApp groups.
Having visible armed response signage can also serve as a deterrent.
Installing quality CCTV cameras around your premises will help SAPS with investigations and will also deter opportunistic criminals.
It is also vital that all incidents are reported timeously to the police so that they can be logged as crime statistics.

“Crime statistics help the police strategise and allocate the appropriate resources to suburbs, in conjunction with private security companies and other stakeholders, to protect lives by better managing crime, curbing trends and equipping the justice system,” the group said.

Original: Business Tech

Load-shedding destroys devices and appliances — Here’s how to protect them

Thu, 17 Nov 2022 07:14:36 GMT

South Africans have been experiencing the worst year of rolling blackouts so far in 2022, and with load-shedding often comes power surges that can damage electrical equipment.

Dialdirect head Anneli Retief previously told MyBroadband that claims relating to load-shedding-induced power surges have doubled since 2018, meaning it might be wise to protect your devices and appliances from the power spikes.

When power is restored after load-shedding, a rush of electricity exceeding the typical voltage supplied to households can occur. Any device connected to mains power at the time is at risk of being irreversibly damaged.

However, there are several interventions that homeowners can make to protect their appliances and devices from power surges.

These include disconnecting devices from mains power during power cuts, investing in DB board surge protectors, replacing plugs with surge-protecting variants, and connecting devices and appliances to surge-protecting strips.

More details on each form of intervention are provided below.

Disconnect devices and appliances

According to Dialdirect, switching off appliances like fridges and air conditioners during load-shedding can help protect them from power surges when electricity is restored.

The insurer advises that owners wait for the power supply to stabilise by waiting for lights to stop flickering or dimming before switching on the appliances one by one.

Completely unplugging appliances that can be is the safest option.

Furthermore, having devices disconnected from the mains when power is restored puts less pressure on the power grid, making damage to municipal and Eskom infrastructure less likely.

High power demand when electricity is restored puts immense pressure on electrical infrastructure like transformers and mini-substations, which can often result in further electrical faults.

This, in turn, causes prolonged outages as Eskom or municipal staff must repair the fault for power to be restored to the area served by the blown transformer.

With the load-shedding South Africa has experienced over the past two years, these faults are becoming increasingly common to the point that Eskom warned that it could run out of spares to repair them.

In July 2022, the power utility published a statement warning South Africans that it had limited stock levels to replace blown transformers and repair mini-substations.

At the time, it said it had replaced or repaired 116 damaged substations and 1,326 transformers, costing the power utility R152 million.

Surge protectors and strips

South Africans can buy surge protectors for their DB board or surge-protecting rewirable plugs and power strips from various hardware stores and online retailers.

When power levels spike above a certain threshold, surge protectors reroute excess energy into their grounding wire, preventing it from reaching your appliances or devices.

They can also help protect devices if the voltage drops below safe thresholds.

DB board surge protectors should be installed by a certified electrician. However, those looking for a solution with less hassle can opt for surge-protecting rewirable plugs or power strips.

These essentially divert excess electricity in the same way but merely need to be the link between your mains power outlet and your appliances to provide protection.

Several DB board surge protectors and surge-protecting rewirable plugs and strips, along with their pricing, are listed in the table below.

It should be noted that the surge-protecting plugs listed above also require some work in the form of rewiring appliances to set up. However, this is relatively straightforward.

While DB board surge protectors and surge-protecting power strips are more expensive than surge-protecting plugs, they simultaneously provide surge protection for multiple appliances and devices.

On the other hand, rewirable plugs only protect the device to which they are wired.

Uninterruptible power supply (UPS)

UPSes also allow users the time needed to safely shut their devices off or continue working after load-shedding has kicked in.

They also regulate the amount of power connected devices and appliances receive — essentially a form of surge protection.

UPSes come in varying sizes and use batteries to keep your devices running without interruption when the power goes off. They also provide users time to save their work if the power goes out while they are busy.

The size of the UPS needed to run devices depends on the unit’s capacity and the load which connected devices and appliances put on the UPS.

Five UPSes of varying sizes and their prices are listed below.

Original: Business Tech

New tactic used by criminals to steal keyless cars in South Africa

Mon, 07 Nov 2022 07:19:57 GMT

Vehicle tracking company Tracker has warned motorists to be on alert for a new tactic being used by criminals to bypass newer technologies and gain access to keyless vehicles in South Africa.

Tracker’s latest Vehicle Crime Index covering the period January to June 2022 reveals that incident volumes have increased to pre-Covid lockdown levels across the country.

Vehicle theft is up 7% nationally by volume, with hijackings up 4% over the previous review period, Tracker said.

“The elevation can partly be attributed to increased vehicle usage following a return to work and more numerous social occasions, as well as new modus operandi on the part of criminals and crime syndicates, such as keyless access theft,” the group said.

Duma Ngcobo, Chief Operations Officer at Tracker, said that new technologies like keyless entry and activation could provide convenience for motorists, but keyless access theft also highlights how criminals are turning to tech to make car theft easier.

How it works

The keyless access tactic involves a pair or team of criminals, one of whom could follow a newer model vehicle owner as they walk away from a locked vehicle.

Using a relay amplifier, a criminal can amplify the constantly transmitted signal received from the vehicle’s key fob to a criminal counterpart’s relay transmitter.

The criminal counterpart can then gain access to the vehicle via the transmitter and drive away with it.

How to mitigate the tactic

Tracker said that motorists should be proactive and take steps to avoid becoming a victim. To combat keyless vehicle theft in particular, the group suggested using Faraday pouches (also known as a fob guard) to store your key fob.

“Lined with layers of metallic material, this pouch helps block key fob signals, thereby preventing criminals from intercepting the signal,” it said.

Other proactive measures to combat this new MO include:

If the front of your home and your vehicle are easily accessible, for instance, in high-density or cluster-style living environments, try to store your key fob as far away from the access point and your car’s location as possible, to minimise the possibility of amplifying the key fob signal and allowing criminals to access your vehicle.
If your car does not park securely behind a locked gate or in a garage when parked at home, try to park a car requiring a key behind your keyless car to ensure it cannot be driven away without increased effort.
You could also consider deactivating the keyless entry function.
Ensure that your doors are locked before walking away from your parked car. For cars requiring key entry, always double-check by lifting the handle once you have locked the doors – remote jamming as a modus operandi continues to gain popularity in criminal circles.
When parking, choose a well-lit area and, if possible, an area with cameras monitoring the parking area and pedestrian activity around your vehicle.
Use a steering wheel lock. Although they are considered ‘old-school’, they can be effective as a visual deterrent.
Install an immobiliser. While many cars have factory-fitted immobilisers, there is merit in having an additional system installed. As an extra bonus, your car insurance premium could possibly be reduced because of the additional deterrent.
Install CCTV to watch over your car when parked in your driveway, and add a motion detector light. Both can act as a deterrent and provide additional peace of mind.
Consider installing or upgrading your vehicle tracking system to an option offering both theft retrieval and early notification of unauthorised movement to ensure vehicle recovery protocols can be initiated immediately following a theft.

With more vehicles on the road now than during Covid’s restrictions, the indication is one of greater theft opportunities for criminals.

“As criminals and syndicates vary their methods and use technology to gain access to cars, Tracker encourages all South Africans to adopt proactive behaviours that could help mitigate vehicle theft. Sometimes it is the most simple of behaviours that can make all the difference in ensuring that you remain a step ahead,” said Ngcobo.

Original: Business Tech

Hijacking is on the rise in South Africa – these are the cars that criminals are after

Mon, 31 Oct 2022 09:21:38 GMT

Hijacking syndicates are taking South African vehicles across the border into neighbouring countries like Mozambique, Swaziland, Eswatini, Zambia, Namibia, Zimbabwe and Botswana.

Speaking to ENCA , crime expert Calvin Rafadi said that car smuggling is being assisted by SAPS officials who are in collusion with border patrols. These officials assist the criminals in fulfilling the necessary documents to clear the cars across the border.

The South African Police Service’s (SAPS) latest crime statistics show that 5,866 hijackings were reported across the country between April and June 2022 – a 14% increase from the 5,146 hijackings reported over the same period in 2021.

This year-on-year increase in hijacking reports means that a car is estimated to be stolen every 22 minutes in South Africa.

Vehicle tracking company Tracker said that car theft is up 7% nationally by volume, with hijackings up 4% over the previous review period.

Rafadi said that the ratio to which hijackings occur and a vehicle is actually recovered is very low. Crime syndicates dedicated to stealing vehicles receive orders for a certain type of car; such orders are then fulfilled by ‘foot soldiers’ based in South Africa.

Once a car has made it across the border, either through the normal border post or through a hole cut in the fence, the syndicates are paid in foreign currency or illicit goods such as chemicals to make drugs or tobacco.

He said that luxury vehicles or big SUVs are the most common that get smuggled, and orders are put out for them, whereas smaller sedans or cars such as the VW polo will sometimes remain in the country and be sold domestically.

The graph below shows the steady increase in the number of hijackings over a decade:

In-depth insight provided by SABC News found that these syndicates are extremely violent and, in some cases, kidnap those who may be in the car. Victims’ movements are often tracked so that criminals can predict the best time to take a vehicle.

According to an anonymous ex-car smuggler, members of the syndicate often carry two identification documents so as to fool border patrols and deny involvement in a crime.

What is targetted

Security group Fidelity reported that the most often targeted vehicles are Toyota and Volkswagens, with targeted models including:

Toyota Hilux
Volkswagen Polo
Toyota Quantum
Nissan NP200

On top of those mentioned by Fidelity, crime expert Rafadi mentioned the following:

Toyota Fortuner
Toyota Etios
Toyota Yaris
Ford Ranger
Ford Figo
Nissan Navara

When and where

Security and car tracking company Tracker said that hijackings occur the most from Wednesday to Friday between 16:00 to 20:00. Whereas vehicle theft where the driver is not in the car occurs the most on Saturdays between 11h00 and 15h00.

SAPS reported Gauteng to be the hijacking hotspot of South Africa, with 3,113 between April and June of this year. KwaZulu-Natal follows suit with 913 and then the Western Cape, 754.

Mpumalanga was the only province to record a decline in hijackings, reported SAPS.

The police service listed the following stations as the top 10 hijacking hotspots:

Nyanga, Western Cape
Philippi East, Western Cape
Harare, Western Cape
Moroka, Gauteng
Sandringham, Gauteng
Midrand, Gauteng
Vosloorus, Gauteng
Alexandra, Gauteng
Pinetown, KwaZulu- Natal
Kempton Park – Gauteng

How to prevent

While vehicle theft levels remain concerning, there are steps that can be taken to try to avoid becoming a victim, says Tracker. The following tips have been provided to assist you in safeguarding your vehicle:

Should you have a keyless access vehicle, invest in a secure Faraday pouch (also known as a fob guard) to store your key fob. Lined with layers of metallic material, this pouch helps block key fob signals, thereby preventing criminals from intercepting the signal.
If the front of your home and your vehicle are easily accessible, for instance, in high-density or cluster-style living environments, try to store your key fob as far away from the access point and your car’s location as possible, to minimise the possibility of amplifying the key fob signal and allowing criminals to access your vehicle.
If your car does not park securely behind a locked gate or in a garage when parked at home, try to park a car requiring a key behind your keyless car to ensure it cannot be driven away without increased effort.
You could also consider deactivating the keyless entry function.
Ensure that your doors are locked before walking away from your parked car. For cars requiring key entry, always double-check by lifting the handle once you have locked the doors – remote jamming as a modus operandi continues to gain popularity in criminal circles.
When parking, choose a well-lit area and, if possible, an area with cameras monitoring the parking area and pedestrian activity around your vehicle.
Use a steering wheel lock. Although they are considered ‘old-school’, they can be effective as a visual deterrent.
Install an immobiliser. While many cars have factory-fitted immobilisers, there is merit in having an additional system installed.
Install CCTV to watch over your car when parked in your driveway, and add a motion detector light. Both can act as a deterrent and provide additional peace of mind.

Original: Business Tech

How your home’s load-shedding backup can impact your insurance

Wed, 16 Mar 2022 08:11:25 GMT

South Africans with backup power systems at home must ensure that their insurance is aware of their installation and that it has been safely and correctly set up and configured.

King Price Insurance spokesperson Wynand van Vuuren recently told CapeTalk’s Refilwe Moloto that those who failed to do so might not be covered in the event of a fire, flood, or power surge.

Many households now have some form of alternative energy source that can supplement their consumption or provide backup power during load-shedding.

A popular option is photovoltaic solar power, which uses panels on a house’s roof to capture energy from the sun.

This requires an inverter that can convert energy from the panels into useable electricity for your house.

There might also be a battery in the configuration to store excess energy for dispatching when the sun isn’t shining.

This combination of equipment — panels, inverter, and battery — can cost tens or hundreds of thousands of rand, depending on your household’s electricity requirements.

Van Vuuren said that communication on your backup power system with the insurer should be a first priority.

The primary purpose of this is to ensure that the insurer is aware of the system and that it is included in your building cover.

In addition to keeping your insurer in the loop, the solution and its installation must be reliable and safe.

“You must make sure that what you buy and how it is installed is also correct,” Van Vuuren said.

“First, go and make sure that it is SABS-approved, and that there is some or another quality assurance or warranty on the item,” Van Vuuren advised.

He said that consumers must do their homework on this by going online and checking the specifications and reviews of the products.

Finding the right installer

Once a homeowner has found their preferred solution, it is crucial that a qualified electrician install it.

“You can’t just go and read the manual and put that alternative power on your house yourself,” Van Vuuren stated.

“The short-term insurance policies in our country require that the construction must be perfectly done, workmanship must be professional, and it must be certified.”

“Then you know that you have got nothing to worry about.”

Once the installation is done, it is important to call the insurer and inform them of its cost, so your premium can be adjusted accordingly.

Van Vuuren added that any other alternative power sources — such as fuel-based generators or gas-powered systems — should also be installed by professionals.

Original: My Broadband

South Africans will soon know if a second-hand car was written off before buying it

Tue, 08 Mar 2022 13:32:39 GMT

The South African Insurance Association (SAIA) has confirmed that its vehicle salvage database (VSD) task team has agreed to start publishing the details of all Code 3, 3A, and 4 written-off vehicles on its website.

This will allow consumers to see whether a pre-owned vehicle they are interested in buying has been in a serious accident – and then repaired to remove the damage.

It must be noted that the list of written-off vehicles will not include every car on the road – only those insured by one of the members of the SAIA, which includes most major insurers.

The SAIA has not yet announced when the list will become available to the public, but said the matter will be discussed at a board meeting on 10 March.

What you need to know

The upcoming database of Code 3, 3A, and 4 written-off vehicles will give consumers extra peace of mind.

The code descriptions on the list will align with the salvage codes of the SAIA, which are:

Code 1 – New motor vehicles delivered by a dealer to the first owner
Code 2 – Used motor vehicles with one or more previous owners
Code 3 – Built-up/permanently unfit for use
Code 4 – Permanently demolished

The built-up designation is reserved for vehicles that were repaired and re-registered after previously being declared permanently unfit, or vehicles supplied by an unregistered manufacturer, builder, or importer.

The new database will therefore only include previously written-off vehicles and not those that have experienced smaller accidents and fender-benders.

The site will be funded by the in-house task team in an effort to retain its independence and it will not be used to generate revenue, said the SAIA.

In order to keep the database safe from abuse, SAIA said it will employ geolocation and ID numbers to identify users.

Original: Top Auto

Hijackers target these vehicles in South Africa

Mon, 15 Nov 2021 07:14:11 GMT

South African police recorded crime statistics point to the types of vehicles targeted by thieves and criminals in the country.

The most up to date crime data from the SAPS, published in mid-August, revealed that carjacking increased by 92.2% for the period April 2021 to 30 June 2021 compared to the same period last year. This figure, however, was adjusted to 13.2% when compared to the same period during 2019/2020.

Prior to the Covid-19 outbreak, which caused an anomaly in the crime stats, annual crime data from SAPS for the period between April 2019 and March 2020 showed that as many 5,245 sedans or hatchbacks were hijacked. In Q1 of 2021, 1,839 sedans or hatchbacks were carjacked, while SUVs accounted for 239 incidents. This was up significantly from 57 SUVs in the prior period.

Bakkies were the second most hijacked vehicle type with 2,200 cases recorded between April 2019 and March 2020. The most recent data shows that in excess of 1,000 bakkies/panel vans had been carjacked inQ1 of 2021 alone.

Most carjackings took place in Gauteng, which recorded 9,025 incidents between April 2019 and March 2020, and almost three times as much as KwaZulu-Natal.

Data published by vehicle-tracking company Tracker in August noted a change in vehicle criminal behaviour as hijackers become more brazen and desperate.

According to Duma Ngcobo, chief operating officer at Tracker South Africa, hijacking is now more prevalent than vehicle theft.

Hijacking attributed a higher percentage of the Tracker vehicle crime activities in 2021 when compared to theft, averaging a 54/46% split.

“The slant towards hijacking is most likely an opportunistic tactic, with a noticeable increase in vehicles being targeted for their loads, particularly fast-moving consumable goods.

“Drivers carrying large amounts of cash are also being targeted. South Africans should be wary and remain vigilant, especially when returning home from shopping or when goods bought online are delivered to their homes. Hijackings are often violent, and there are instances where a hostage is taken,” said Ngcobo.

Security firm Fidelity ADT meanwhile, said that incidents involving remote-jamming devices have become an everyday occurrence in South Africa.

The following vehicles are considered ‘high-risk’ and that a tracking unit should be installed where possible:

VW Polo sedan
VW Polo hatchback
Toyota Fortuner
Toyota Etios
Toyota Yaris
Toyota Hilux
Ford Ranger

You are most likely to be hijacked on a Wednesday, Thursday and Friday between 18h00 and 21h00, or on a Friday or Saturday night between 21:00 and midnight.

The CEO of MasterDrive, Eugene Herbert, said that drivers should always be prepared should they become a target.

“Your first defence against carjacking, is to be aware of suspicious people and situations in order to prioritise your safety. Potentially risky people or behaviour include cars or people around your driveway when you arrive home, cars driving behind you for some time, someone different or unusual at an intersection or suspicious people in parking lots. Pay attention to what is around you and if your gut instinct feels off, listen to it.”

Unfortunately, however, the possibility that you still fall victim to a carjacking is very high. “While a comparison to 2019 figures is likely more accurate, the figure could possibly still be higher due to the intense economic pressure on citizens. If you find yourself in this situation, these are the most important tips to keep in mind,” said Herbert.

A car is replaceable a life is not. Do not argue, fight or try anything dangerous to escape the situation. News stories about drivers whose ‘heroic’ actions helped them escape would be far lower if the stories of people who tried fighting, but failed, were published, he said.

“Indicate your willingness to comply. A hijack extraction course will teach you the steps to take that will indicate to a criminal that you will surrender the car,” he added. “Ensure you regularly practice getting out of a vehicle in the same way you would during a carjacking – as often as possible. Make it the normal way you exit your car so that if it had to happen, it is muscle memory and you react automatically.”

As the economy continues to struggle to recover, it is unlikely the next crime stats will improve by much, said Herbert. “Ensure no matter what the stats say, that you are constantly aware and know what to do if you come face-to-face with a carjacker.”

Original: Business Tech

Beware this scam in South Africa warns insurer

Mon, 20 Sep 2021 13:55:00 GMT

After recently splashing out on your dream car, you receive a call from the dealership stating that the model is being recalled to fix a defect. The manufacturer will bear the cost and it will be arranged for the vehicle to be collected.

This is inconvenient, but you agree and hand your vehicle over to the tow truck driver when he arrives.

Having heard nothing for a few days, you call the agent to follow up on the progress with your car, who informs you there is no recall and they never received the car.

This is when you realise you’ve been scammed. You are the victim of “theft under false pretence”. Even worse, your insurance policy wording excludes cover for loss where you release your insured property (your car) to a scammer without confirming with the manufacturer first.

So, what do you do now?

Report your car as stolen to the police. Then, immediately contact your insurer and explain what happened.

The chances may be slim that you’ll recover your car at this point, but your insurer employs investigators equipped with tools such as intelligent data systems and automatic number plate recognition for vehicle sightings to trace stolen vehicles.

Statistics worldwide estimate fraud connected to short-term insurance claims to be as high as 20%, said Dennis Potgieter, Hollard Insure national manager: loss verification. Detecting fraud before claims are paid is a priority for insurers.

It is vital that every insurer has a loss verification division, or uses an external partner, to conduct validations and verifications of losses and incidents, and detect fraudulent claims before they are paid out, said Potgieter.

This protects not only the insurer’s own interests in items that are insured, but also its loyal clients, and limits the risk of people having to claim, he adds. “If we weren’t there, insurance companies would pay out on those claims, leading to increased premiums. We’re making sure we protect our clients who have legitimate claims from fraudsters and crime.”

Such fraudsters often belong to syndicates committing theft under false pretence. Common examples of this are when people are scammed when selling their cars over the internet or by crooks posing as technicians for vehicle-tracking companies, who then make off with the unsuspecting owner’s car.

But not all insurance fraud is linked to syndicates. Think about the person who inflates their legitimate claim by adding a few items; the person who, after claiming for a lost cellphone and receiving a replacement handset, finds and keeps (or sells) the misplaced item; and the person who allows their son to drive their car but pretends they were the driver when there’s an accident in order to avoid paying a big excess.

The consequences of such actions can be serious – the person can be exposed and their policy cancelled and/or they can be criminally charged, warned Potgieter.

Fighting fraud with artificial intelligence

A 2020 report on insurance fraud by FRISS, which develops artificial intelligence-powered fraud-detection software for insurers globally, states that the Covid-19 pandemic forced nearly two-thirds of all insurance organisations to focus more on digitalisation to detect fraud more easily.

Almost half had a focus on reducing costs, and about 30% actively increased their fraud checks.

Although there are always new scams to contend with, insurers’ loss verification divisions work hard to identify and keep a record of fraudsters and syndicate members.

Technology offers new ways of fraud detection, Potgieter says. These tools include:

Predictive and prescriptive analytics are used to flag trends and suspicious claims, and to track claims that require an investigation;
Layered voice-analysis software that helps to determine the level of nervousness of a caller and whether a claim requires more in-depth validation;
Cross-checking data from various sources;
A vehicle identification intelligent data system;
Automatic number plate recognition;
A system that creates an alert if a person suspected of, or proven to have committed, fraud claims or creates another policy on a different platform, mitigating the risk upfront;
Mobile phone positioning to detect the location of a phone.

Drawing on data collected over several years and its analysis, the Hollard Loss Verification division has managed to reduce its false-positive fraud-trigger rates on motor claims from 16% to 6%, Potgieter said.

Machine learning helps to eliminate even more false positives, and robotics is used for mundane tasks such as extracting reports for claim adjusters to review. This frees up more time for them to validate losses.

Teamwork – including with other insurers – and creating awareness through the Insurance Crime Bureau, a non-profit company dedicated to fighting organised insurance crimes and fraud, are the only ways to win the fight, noted Potgieter.

Prosecution is important, as are the sharing and circulation of information about fraudsters among different insurers.

So, how can you avoid falling victim to a scam?

If you sell your car or any other insured item, make sure the money is cleared and paid into your bank account before you hand it over.
Check directly with your dealership if you’re approached to have your vehicle towed and “repaired” as a result of a “recall”.
Make sure you understand how you are covered and adhere to the requirements of your policy and contract. Most insurers, for example, will no longer cover the risk of remote jamming, so always make sure your car is properly locked to mitigate that risk.
If you’re not covered for fraudulent acts or cybercrimes, speak to your insurance broker to see if there is any additional protection you can take out.

If you suspect someone is defrauding you, inform your insurance company straight away. Insurers are able to circulate information in the industry as part of the effort to track and recover stolen items, said Potgieter.

Original: Business Tech

The simplest thing you can do to lower your insurance premiums

Tue, 31 Aug 2021 07:17:33 GMT

The cost of living is climbing in South Africa. And as many consumers scrutinise their budgets to find extra ways and means of saving, very few consider checking whether they can in fact qualify for more affordable insurance cover.

And while cheaper insurance options could save you some cash in the short-term, the key thing to note when evaluating your premiums is that you are adequately covered. Being under-insured is a nightmare no homeowner wants to find themselves in.

It is possible to get affordable cover, without compromising on quality.

Check in regularly on your insurance cover

It’s very important to do a regular run-through of your lifestyle, profile and assets as these are the factors that determine how much you are charged every month.

Things change all the time – for example, you may have installed extra security measures around your home and not told your insurer, changed jobs, gotten married or had a child move to university. Simply by updating your profile, you may find that your premium decreases or that your risk profile has changed, advises Santam’s underwriting team.

Try this handy home contents calculator tool to help you make an inventory of all the structures on your property.

Here are some savings tips to ensure you enjoy affordable house insurance and building insurance.

More affordable home insurance

Beefed up security: Additional measures such as burglar bars and an alarm system or living in a security complex all add up. These things could lower your premium considerably.
Do a home inventory: The insured amount of your house contents should represent the new replacement value. If overly inflated, it would mean a higher premium - without any benefit at claims stage. Rather do it accurately: item by item, room by room, instead of guessing an amount.
Higher excess always equals a lower premium: This is another way to save if you can put some money away in the event of a claim
Ensure that the address and the construction of the roof and walls are correctly noted on the policy as it is used as rating factors.

Get a quote on combining your building and home contents insurance and save.

Budget building insurance cover

Total value insured amount: Be sure to establish the current building replacement cost of all the structures on the premises to see if you might be over-insured and paying higher premiums than necessary.
Note the address and construction of the roof and walls on the policy - these are used as risk rating factors.
Choosing to pay a higher excess in the event of a claim would result in a lower premium.

Key things to note if you decide to switch insurers:

According to Santam’s underwriting team, it is advisable that you shop around for an offer that suits your needs and your pocket best.

"Get various quotes and find an insurance option that works for your needs and your budget".

"Also ensure that your policy cover and terms and conditions of your new insurer is similar or better than your previous insurer. For extra peace of mind, ensure that your new cover is in place and active before you cancel your old insurance.

If you have any questions about building insurance, contact us . Remember: if you’re an existing Santam client, you can add new items and make changes to your cover on the Santam client app."

Original: Property24

Your Assets and Underinsurance

Wed, 21 Jul 2021 11:53:06 GMT

Your home is likely to be your most substantial financial investment. That’s why insuring it correctly is so important.

Your home is likely to be your most substantial financial investment. It’s also the absolute cornerstone of your lifestyle and family – it’s your security, your happy place, your stability, your castle. That’s why insuring it correctly is so important.

“If you lost your entire home with everything in it in a fire, or all your possessions were carried off by the local crime syndicate, and you didn’t have insurance to protect you from the financial repercussions, you’d be up the creek without a paddle. You would also still be liable for any outstanding debt on the bond or contents, despite the fact that you no longer have them. Paying off the existing debt and trying to fund your replacement digs at the same time would be pretty impossible,” explains Hollard.

That’s where insurance comes in – one of the finest financial planning tools ever invented. By paying an insurance premium every month, reviewing and updating your policy every year, and sticking to some basic risk prevention strategies on your part, you get to live and love your life and seize opportunities, safe in the knowledge that if something does go wrong, they’ll soon be set right thanks to your insurance. All of this comes with the proviso that you’re correctly insured right from the start and that you adhere to the terms and conditions of your insurance policy.

One of the most important aspects of home insurance is to avoid being underinsured and having, what insurers call, the ‘condition of average’ applied come claims time.

What is Underinsurance?

In a nutshell, it means that your insured values are less than what it would cost to replace the lost or damaged items. So, while your insurance will help towards recovering some of your losses, there is going to be a shortfall. The replacement value refers to what it would cost you at the time of a claim to replace lost or damaged items with new ones.

What is the condition of Average?

In assessing your claim, the insurer will work out if you were underinsured prior to the claim, and to what extent. If you were underinsured, then only a part of your claim will be paid out after the principle of ‘average’ has been applied. The claim amount that will be paid will be calculated as follows:

(Sum insured / Replacement value) x Amount of total loss

Here’s a simple example to illustrate:

The contents of a home are insured for R300 000. The actual replacement value of all the contents is R600 000. If the house is burgled and contents worth R60 000 are stolen, the claim amount would be calculated as follows:

(R300 000 / R600 000) x R60 000 = Claim amount payable of R30 000 This means there will be a shortfall of R30 000 because the home contents were underinsured by 50%.

How to avoid underinsurance:

Take an inventory of all your contents
Do a proper inventory of your home contents every year, starting from the smallest right through to the biggest, and then attach a value to what it would cost to replace such items. Home contents insurance is based on a total sum insured value and it’s virtually impossible to guesstimate what that value should be in the absence of a comprehensive inventory list. The home contents sum insured should reflect the cost of replacing the entire home’s contents with new items should it all be lost, stolen or damaged. At the same time, you don’t want to be paying insurance for items you no longer have.

Insure your buildings at replacement value, not market value
The buildings sum insured must cover the cost of replacing the actual structural building, including outbuildings (such as a granny flat or a shed, paths, driveways, swimming pool, walls, fences, gates and a play area), should they be totally destroyed. Remember there is a difference between the market value, which is what you would get for your home if you sold it on the open market, versus what it would cost to completely rebuild it to the same standard at today’s building prices if it burned to the ground. You also need to factor in ‘hidden’ costs such as rubble removal and new building plans.

Update your sum insured regularly
Replacement values change over time, especially on appreciating assets like property. This could be due to inflationary factors, as well as exchange rates which impact the replacement values on imported goods such as appliances. Therefore, an annual review is essential. If necessary, get a professional valuation.

Pay special attention to items which you remove from your home
You will need portable possessions cover for these items, which is different to home contents cover. Examples of these types of items are jewellery, watches, sunglasses, cell phones and laptops which must be specified to enjoy cover. If you have portable possessions cover then you will be covered for the specified items whether the insured event happens in or out of your home. If you only have home contents cover for these items, then you will only be covered if the insured event happens within your home.

Always insure for worst case scenarios
Insurance is there to give you peace of mind and protect you from total losses because of, for example, a fire or flood. So, make sure you insure all your items and not just what you think might be stolen in a burglary.

Please contact us if you need any assistance in establishing the correct values for your assets.

Original: Private Property

Covid Travel Insurance

Mon, 05 Jul 2021 12:21:58 GMT

You should probably buy Covid insurance before you travel - here’s how three options compare

Travel insurance may be something of a grudge purchase, but it can be valuable if your trip doesn't go to plan.
Although many insurance companies have excluded Covid-19 related expenses from their policies, some now cover a few basic costs such as quarantine and cancellations due to the pandemic.
They're also not particularly expensive, and include other more traditional travel insurance benefits.
One week of coverage will likely cost you in the region of R500.
Here's how three options in South Africa compare.

International travel remains difficult for South Africans, but it’s not an impossibility. Several mostly African countries have kept their borders open to travellers with negative PCR tests in hand - and the low tourism numbers mean many travel-dependent businesses are offering some really good deals .

But even as travel slowly starts to reopen for some, certain risks remain - particularly in the event that you contract Covid-19 after paying for or midway through a trip.

In the immediate aftermath of Covid-19 travel cancellations, many insurance companies moved quickly to distance themselves from any claims that arose from cancellations or quarantines. But there are now at least three insurance companies in South Africa that will partially insure you against some or all of the costs associated with Covid-19 and travel - be it a trip cancellation, hospital treatment abroad, or an extended quarantine in a foreign hotel.

Even at the best of times travel insurance policies are laden with terms and conditions, but this is even more of a reality with those that include Covid-19 coverage.

Many policies won’t cover travellers for Covid-related expenses if they are over a certain age, have co-morbidities, or a body mass index above a certain level, for example.

Picking a travel insurance company that includes Covid-19 coverage is therefore complex - and requires a deep reading of the terms and conditions to find those that best suit your particular journey. But Business Insider South Africa found at least three companies that are willing to offset some of the costs associated with things like mandatory quarantines and cancellations. And for a week-long trip, these won’t typically cost more than R500.

The prices quoted in our comparison use a scenario of a single traveller under the age of 70, taking a trip in the first week of August, and purchasing out the most comprehensive package available. A change in any of these conditions may result in higher charges or no policy being available.

Here’s how three travel insurance companies in South Africa compare when it comes to Covid-19 coverage.

TIC

TIC provides some cover for Covid-19 related expenses - but will not cover you in the event of trip cancellation, curtailment or postponement due to the pandemic.

TIC will, however, cover medical expenses related to contracting Covid-19 while travelling, up to the maximum in the policy bought; on their most comprehensive package this coverage is up to R100 million.

They will also pay towards quarantine accommodation, either the lesser cost of either 3-star quarantine accommodation or R2,500 per day, to a maximum of R25,000. This is the highest benefit in this regard that Business Insider SA was able to find locally.

The company will also cover economy class travel expenses to a maximum stated in the policy document in the event of quarantine.

TIC’s Leisure Comprehensive insurance package for one week starts at R545.

Allianz

Allianz provides Covid-19 cover for certain related expenses under all of its policies, although coverage does not extend to cancellation or curtailment relating to Covid-19.

Allianz’s Travel Extra Cover is its most comprehensive Covid-19 package. This includes R10 million in emergency medical and associated expenses, and R15,000 (less an excess of R1,000) towards 10 days of quarantine accommodation.

Allianz's Travel Extra insurance package for one week starts at R271.

Hollard Travel

Hollard covers some Covid-19 expenses in most of its packages - and it’s one of the few that offers cancellation and curtailment cover in the event that you test positive prior to departure.

Their policy does have strict exclusion clauses, however. They do not, for example, cover people older than 66, those with a body mass index of 35 or higher, or those with a combination of diabetes and either high blood pressure or cholesterol.

Their most comprehensive Covid-19 package includes coverage for medical costs as a result of illness caused by infectious diseases of up to R100 million and R50 million for in-hospital expenses.

Mandatory quarantine accommodation must be booked or cleared through Hollard, and their most expensive package will cover this to a maximum of R15,000.

If you are forced to quarantine after testing positive prior to departure, Hollard will pay out up to R60,000 towards losses incurred, such as airline tickets and accommodation, on its most expensive package.

Hollard will also pay R2,000 towards the cost of a Covid test when positive, and if a city is isolated due to an outbreak of Covid-19 they’ll pay 75% of the loss incurred, to a maximum of R10,000.

Hollard’s Covid-19 travel insurance package for one week starts at R450.

Here's how the three travel insurance options compare:

*Approximate cost for elite package based on 7 days for one person under 70 travelling within Africa

Original: Business Insider South Africa

Comprehensive Funds Protect cover

Mon, 05 Jul 2021 10:52:37 GMT

Funds Protect business and personal product cover offering by PHISHIELD UMA (Pty) Ltd.

This product will protect your business funds against fraudulent activity from a loss of funds in an account in your business name as a result of a fund transfer whether authorised or unauthorised due to fraudulent conduct of a third party which is irrecoverable from your financial Institution or third party. A similar product is also available to personal clients.

Some examples of the cover this product will provide are the following EFT scams , Hacking and Vishing attacks , ATM scams , Holiday scams , Bogus property rentals , Email interception fraud , Transactions due to stolen identity ,demand for ransomware attacks, Sim Swap fraud , online banking fraud , online shopping fraud. Please contact us if you are interested.

A similar product is also available to personal clients.

Growing trend for Cyber Attacks

Mon, 05 Jul 2021 10:43:41 GMT

Cyber risks are becoming one of the most prominent exposures and are fast gaining momentum worldwide.

A cyber or cybersecurity threat is a malicious act that seeks to damage data, steal data, or disrupt digital life in general. Cyber -attacks include threats like computer viruses, data breaches, and Denial of Service (DoS) attacks. A single exposure could wreak havoc, especially for a small business who are proving to be the most vulnerable. As seen from previous instances involving big businesses, they have the necessary resources to deal with such an attack as quickly and seamlessly as possible with little interruption to their daily business actions. Cyber security, cyber risks, cyber threats, data protection and POPIA are becoming hot topics and the reality is that most small businesses will probably not survive the aftermath of a cyber breach. Be safe and contact us to do a quote to cover your business against the costs of such a breach.