Cash in transit demands special insurance knowledge, solutions

Effective management of risks in the movement of cash requires highly specialised specie insurance solutions with premiums that deliver fair value.

Polygon Underwriting Agency, a partner of GENRIC Insurance Company Limited whose business partners include Swiss Reinsurance Company and Price Forbes, offers the market extensive experience and effective solutions in this niche market.

“Premiums are calculated on the individual risk as opposed to simply being market-related,” says Polygon Underwriting commercial director Hentie Snyder. “It is a risk that requires infrastructure, expert knowledge and hands-on experience, despite the fact that it is also one of the oldest and most common risks.”

Snyder adds that for many years much of this complex cover for cash in transit was placed overseas at high cost and with policy conditions better suited to overseas needs.

“The insurance of cash in transit risks can only be undertaken with specialist knowledge as the transport of cash is a complicated risk and very high values are involved. It needs to be insured in a way that covers all eventualities.

“A focused structure, expertise, secure transport and storage management experience as well as innovative insurance solutions tailored to specific needs and circumstances are required.”

As a niche financial service, demand for Specie insurance meeting the needs of cash in transit continues because armed robberies remain a reality in South Africa.

“Polygon’s experience and expertise are backed by careful, diligent research and evaluation. To be effective the insurer must have built up a knowledge and experience base that generates effective cover tailor-made to the needs and circumstances of cash in transit service providers,” adds Snyder.

Polygon has a substantial book of business and established partnerships with key local and international organisations. Locally it takes up the insurance required for cash in transit risks. Nationally there can be billions of rands in transit and at risk at any given time.

“There are ways to manage and decrease the risks,” notes Snyder. “Polygon encourages close liaison with cash in transit companies and provides input on the best solution as well as advice, based on actual experience, for the effective and simplified insurance of these complex risks.”

Snyder warns against Specie insurance being taken within a general insurance cover because it becomes much too complex. “To be effective, these cash in transit policies rely on specific cover wording applicable to the nature of the risks that arise in the cash in transit environment.”

Polygon directors have considerable experience in the field of high value assets-in-transit and storage exposures and over the years have accumulated deep knowledge of the risks involved.