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Not all fat cats…

15 August 2004 Angelo Coppola

(15.8.04) The South African Financial Services Intermediaries Association (SAFSIA) has had a go at disparaging advertising by a direct insurer.

The case in point was a recent complaint lodged by SAFSIA, which the Advertising Standards Authority of SA (ASA) Directorate found in favour of SAFSIA against a Dial Direct billboard.

The billboard depicted generic brokers as "fat cats", creating the impression of brokers unfairly charging fees, and being unfairly wealthy as a result of unnecessary charges levied.

"While insurance brokers  are not opposed to alternative distribution channels, as each has its place in the market, we oppose any advertising which focuses on misleading advertising as well as disparaging advertising which discredits insurance brokers," says Davidson.

He adds that SAFSIA has noted that certain direct insurers have persisted with such disparaging advertising campaigns, despite previous rulings by the ASA, and SAFSIA will continue to be diligent in challenging ongoing violations of ASA regulations.

In terms of the ASA ruling, the respondent was required to withdraw the advertisement within a period of two weeks.

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Healthcare brokers have long complained about inflation-plus medical scheme contribution increases; but pandemic may have changed things. What will pandemic-induced changes in hospital utilisation do to medical scheme contribution increase patterns?

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Below inflation increase for 2022, then back to inflation-plus
Long-term trend of below inflation increases
Inflation-linked hikes for 2022, then back to inflation-plus
This is a 2-year hiccup, inflation-plus increase trend remains in place
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