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The insurance industry is eagerly awaiting the Retail Distribution Review (RDR) paper from the Financial Services Board (FSB) to understand precisely what the FSB’s approach is going to be regarding fees and commissions currently being earned by intermediaries both in the long-term and short-term space.
In the current depressed economic conditions, companies are prone to undergo internal cost cutting exercises. It becomes necessary to cut back on insurance of corporate assets, or to not update cover due to the pressures of minimising costs.
The benefits of telematics have been welcomed by many motorists in America and Europe, while the adoption rate of South African drivers still remains low. However, the various advantages will eventually become clear with the assistance of brokers and financial advisers, says Willem Smith, Managing Director of Personal Lines at Hollard Insurance.
South Africa has had its fair share of natural catastrophes over the past two years. The hail storms, which took place at the end of 2012 and 2013, have shown the local insurance industry that it needs to build significant capacity in order to prepare itself for this being a more frequent occurrence.
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?