Local demand for specie risks insurance and underwriting expertise on the rise

The safety of cash or valuables in transit, high-value commodities, commercial assets or other valuables such as artworks or jewellery at exhibitions, pose a highly specialised insurance risk that requires a focused structure and expertise and, more often than not, innovative insurance solutions.

“Specie insurance is a niche financial service for which there is increasing demand in South Africa, particularly on the cash-in-transit side,” says Cornel Schoeman, commercial director of Centurion-based Polygon Underwriting.

“It has been difficult to obtain insurance cover for cash handling and transportation risks in the South African environment. Specie insurance risks require careful, diligent research and evaluation and through our focus on this specialised area of insurance over the past five years we have been able to build up a solid book and cement partnerships with key local and international players.”

Among Polygon’s partners are Resolution Insurance and two major international insurance players of more than 100 years’ standing, Price Forbes and Swiss Re. Other partners are Grail Africa, a short term insurance management software specialist and Moonstone, an independent support network for financial advisers and business risk management.

“The market in South Africa is predominantly cash or valuables in transit and the risk is very high value for a defined period of time. Often the risk is cash being transported to and from banks, mines, ATMs, road tollgates and other high cash turnover operations,” adds Schoeman.

“Other less frequent, but still substantial risks, are the transportation of artworks, valuable museum pieces and jewellery. They all require individual risk assessments and tailor-made policies, some of which, particularly in the valuable commodities area, also require specialist insurance expertise, specialist policies and specialist input from experts in the field of art, jewellery, artefacts and so forth.”

Schoeman says it is also a field where the application of state-of-the-art technology and international research on experiences, trends and proven solutions plays a major role. “Hence our international partnerships with Price Forbes and Swiss Re are a critical factor in providing the local market with what it needs. Operations that require specie insurance can obtain the cover through the South African broker network.”