Insuring your clients for 2010

The short-term insurance industry has already seen a number of significant product developments or 'adjustments' to cater for all elements of 2010 – from the expected products such as public liability cover to the very unique.

"While product providers are involved in catering for specific needs during this period, intermediaries need to become equally involved – staying abreast of these developments to ensure they provide their clients with the advice they need to make it a memorable, risk-free event," says Leoné Enslin, national short-term manager of the Financial Intermediaries Association of Southern Africa (FIA).

Building boom

Short-term insurance for building and construction is – predictably – the first place where the first real cash injection into the insurance industry has been seen. "These new stadia and developments have also given rise to additional risks that need to be guarded against," explains Enslin.

Perhaps one of the most telling developments in this space as a result of these new facilities is that of the recently proposed Safety at Sport and Recreational Events Bill. "This will require organisers to take out liability cover when hosting events. This means that the spin-off for the short-term insurance industry will extend far beyond 2010 – impacting on everything from music concerts to rugby."

SASRIA

Enslin cites SASRIA cover during the World Cup as a product that more businesses are expressing interest in. "Protest action and other incidents in the run-up to this year's Olympics have demonstrated the value and necessity of being prepared for this type of event. While most policies include this, we're seeing a greater awareness of potential risks of protests or strikes related to 2010, with businesses insuring themselves accordingly."

Liability

Liability insurance in the tourism sector has also attracted attention. "There are already websites in operation that allow visitors to check on the insurance cover specifics of select hotels for example; demonstrating how serious a factor this is for tourists."

FIFA's own rigorous requirements in terms of grading potential accommodation for the event areis also influencing product development. "The minimum insurance requirements of the Tourism Grading Council of South Africa stipulate that accommodation providers have to be completely covered when it comes to public liability. We're also seeing product providers turn their attention to creating unique short-term products that cater specifically for guesthouses and private homes where rooms will be rented out over this period."

Professional players

Local insurance providers might possiblyhave also moved beyond the spectators alone. Talks are underway – lookregarding at working with international partners(at this stage- today- this is also not 100% confirmed- there are talks- but it is not confirmed yet – so maybe also say "possible"?) to provide cover for the professional players and teams, as well as managing the risk of sponsors and companies with a business interest in the event. "Accident and illness cover for professional players could also potentially be is already being offered (I cannot confirm this 100% -the idea is that some of the international insurers- which is also based in RSA wants to offer this to players, but I cannot confirm that this has been done- so rather say it could be offered) to certain individuals and teams. Specialist products have also been created that insulate sponsors from potential risks and protect their investment in the World Cup."

Incentive bonuses

One of these specialist products involves ensuring that any incentive bonus – such as that paid out when a team reaches the semi-finals for example – will be financed by the insurance policy. A similar product focuses on actual "event insurance", looking at everything from "non-appearance" cover for event organisers should a team fail to arrive for its match, to prize indemnity – similar to that seen during the most recent Cricket World Cup when Gibbs hit an over of sixes.

Whether giving insurance advice to a private guesthouse or corporate sponsor, intermediaries need to keep watching the 2010 space for the very latest in short-term products.