IG eZine August 2016

IG eZine August 2016
Especially distilled for Business Insurance Consumers and Insurance Professionals

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Norton Rose Fulbright extends East African footprint

Norton Rose Fulbright has further expanded its footprint in Africa through a strategic alliance
with Walker Kontos, a leading law firm in Kenya. More

Escrow and Source Code: Compromise the way to go

Developers don’t easily part with their source codes because they perceive it akin to giving
Robin Hood the keys to the Tower of London. So how does one avoid being stuck with
“orphan” software? More

Is Bitcoin legal in South Africa?

Because of the anonymity associated with Bitcoin and many other cryptocurrencies and their
role in illicit transactions on the Dark Net, public perception is often suspicious or at least
cautious. More

Women in the Financial Services Industry

In June 2016, global management consultancy, Oliver Wyman, released its second paper on
women’s progress in the world’s financial services sector. The report, which includes an
analysis of 381 financial services organisations globally, including South Africa, found that at
current progress, executive committees in the global financial services industry will only reach
30% female representation in 2046. More

Brexit and Financial Services

The House of Commons library has published a briefing paper on Brexit and financial
services. The briefing paper brings together some of the immediate responses to the UK
referendum result from various organisations. More

FAIS, TCF, RDR, Twin Peaks & Other Regulatory Updates

The Retail Distribution Review: don’t relax your grip now
Fais: Remorse as mitigation in debarment cases
Cost Estimates of Twin Peaks
FSB Email Addresses
The Retail Distribution Review: Objects in the rear view mirror
National Credit Act Card Online Training
FAIS Compliance Deadlines
FAIS: Enquiries About Skills Credits
POPI and your FSP Part I and Part II
Causal Event Charges Challenged Part I; Part II; Part III

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Brit makes strategic investment in Camargue Underwriting Managers

Brit Limited, the global specialty insurer and reinsurer, has made a significant strategic
investment in Camargue. The investment will enable Camargue to accelerate its growth and
increase its product offering and specialised insurance solutions. More

Defining and using risk appetite

There is a growing recognition that a proper understanding of risk appetite is a vital influence
on organisational performance. More

Accenture study shows South African short-term sector slow to embrace digital

The short-term insurance sector in South Africa has been slow to go digital. As a result, the
sector is losing out on the Gross Written Premiums (GWP) opportunity estimated to reach
R115.2 billion by 2020. More

China and the United States, Two Giants with Feet of Clay?

Companies are being negatively affected with low inflation limiting consumer pricing growth.
Against this backdrop, company risk is increasing according to Coface’s country ratings,
which measures the average credit risk in 160 countries. More

Businesses facing disruptive forces

Businesses operating on the continent face a wider range of disruptive forces in 2016 and
beyond. The effects of globalization, digitalization and technological disruption pose
fundamental challenges to many industries. More

Swiss Re reports solid half-year net income amid difficult market environment

Swiss Re reported net income of USD 1.9 billion for the first half of 2016, a solid result in a
period marked by natural catastrophes, political uncertainty and volatile financial
markets. More

SAIA announces new board members

The South African Insurance Association has announced the appointment of three new
members to the SAIA board for the 2016/2017 year. More

Hannover Re well on track to achieve its full-year targets

Hannover Re is satisfied with the result for the first half of 2016. By mid-year it generated
somewhat more than half of the targeted net income - which the company expects to reach at
least EUR 950 million. More

Failure of businesses more likely and insolvencies will increase by +10%

The failure of South African businesses is more likely and insolvencies will increase by +10%
y/y in 2016 according to a study by global leader in trade credit insurance, Euler Hermes
entitled “2016 – A tough year”. More

Leaner times for South African insurers

South Africa is by far the largest regional insurance market, accounting for nearly 80% of all
premiums in sub-Saharan Africa, and an insurance penetration rate of 13%, which is the
highest in the region. More

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Competition law has created a new form of delictual liability

The high court award of R104 million payable by South African Airways to Nationwide
Airlines is the first case to confirm that the Competition Act has created a new form of
delictual liability for anyone that uses its dominant position in a market to impede or prevent a
competing firm from entering into or expanding within that market. More

Seamless risk protection for mega-projects: Angola

Santam Specialist Business has launched a seamless insurance solution which offers
comprehensive risk protection for mega-projects across Africa. More

Preliminary sigma estimates for first-half 2016: natural catastrophes drive global
insured losses to USD 31 billion

Preliminary sigma estimates show total economic losses from natural catastrophes and man-
made disasters reached USD 71 billion in the first half of 2016. The global insurance industry
covered a total of USD 31 billion, or 44%, of the total losses. More

Fire, Floods, Brimstone… and Tornados?

South Africa has been battered by severe weather phenomena, with startling disparities
ranging from severe drought, devastating floods, violent hail storms, heavy snowfalls and
even tornados, leaving a trail of destruction across the country. More

Does your vehicle insurance cover balloon payments?

Motor top-up cover does not usually apply to vehicles that are not comprehensively insured,
and it typically won’t pay for extra expenses such as the deposit, and it will also not cover you
for balloon payments. More

Beware of winter ailments as the seasons start changing

As the seasons and weather patterns start changing and even throughout the warmer
months, many people will unfortunately still find themselves falling ill with respiratory ailments.

Council for Medical Schemes Fee Increases

The Council for Medical Schemes published Circular 57 of 2016 containing details of a
number of fees increases. More

Yellow Fever Outbreak on Brink of Going Global

The largest Yellow Fever epidemic in decades is hitting the Democratic Republic of Congo
(DRC) and Angola, and could soon spread to the Americas, Asia and Europe, Save the
Children warns. More

Getting value from your medical scheme

At Cape Medical Plan we want our members to get as much value for money as possible.
This is why we believe it is crucial for members to understand the current medical climate in
order to fully optimise their benefits when they really need them. More

Hospital Cash Plans in Demand

In response to an enquiry from one of their compliance officers, Moonstone conducted
research on information published on these products that appear to be problematic to
government. More

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LIFE, RETIREMENT                      (incl.         Employee         Benefits)          and
Bidvest Insurance Group Acquires FMI

Durban-based income protection specialist, FMI, has announced that it has been acquired by
the Bidvest Insurance Group (BIG). More

Does your financial advisor help you safeguard your documents as they should?

You’ve found a financial advisor with whom you’re willing to trust with your finances. But what
about the storage of your personal documents? More

Liberty takes decisive steps to address challenges

Liberty remains strongly focused on Strategy 2020, which is our long term strategy for
ensuring the business remains relevant and positioned for growth. More

Old Mutual plc Interim results for the half year ended 30 June 2016

Old Mutual plc, currently separating itself into four standalone businesses, known as the
managed separation, has published its results for the six months to 30 June 2016. More

The Office of the Pension Funds Adjudicator sets the record straight

FSB regrets damage that false allegations may have caused to the reputation of the OPFA
and Ms Lukhaimane’s own personal reputation. More

Why you don’t get the last say in who inherits your retirement death benefits

Before you decide to leave all your retirement savings to your favourite child or local SPCA,
you need to understand that anyone who is financially dependent on you has a legal right to
claim a portion of your retirement fund death benefits. More

GEPF in firing line over withdrawal benefits

Trade union Solidarity is preparing to launch a class action against the Government
Employees Pension Fund. Although Solidarity itself speaks for only 7 100 public servants, a
class action implies that it will seek redress for over 1,2m members of the GEPF. More

Slow but steady decline for living annuity drawdown rates

The average income drawdown rate for living annuities continued its slow yet steady decline
in 2015, edging a little closer to the recommended 5% of capital. More

Rising Stars and Fallen Angels

Conventional wisdom tells us that large, established companies are a safer and better
investment option than smaller companies. More

Collective Investment Schemes industry assets edging close to R2 trillion

South African investors showed their resilience over the 12 months ending June 2016, by
committing a healthy R131 billion in net inflows to local Collective Investment Schemes. More

Sanlam Investments Market Update: July 2016

The outlook for the South African economy remained glum during the month of July. The most
worrying data came from the SA Reserve Bank (SARB), as it revised its growth forecast for
2016 down to 0%. More

                                            4 of 5
Cassper Nyovest talks financial freedom

What sounds better; being rich or being wealthy and do you know the difference? “Wealth is a
personal interpretation - it depends on where you start. More

Mixed signals from financial markets

It was undoubtedly a surprise when 52% of the British electorate voted to leave the European
Union. The immediate reaction of international investors was flight into safe haven assets –
US and German government bonds – and a sell-off in equities and property. More

Active vs. Passive Investment: The Final Verdict

While most active fund managers argue that their skills enable them to outperform the market
return, the majority of research proves what passive managers have known all along – that
even though it may be possible for a fund to outperform the market, it is generally not
probable. More

Time is running out for SA to avoid a sovereign rating downgrade

South Africa’s policymakers therefore have to realise they also are bound by the constraints
imposed by the world system, whether they like it or not. To think that closer ties with the likes
of China and Russia will somehow provide an escape route from this constraint is wishful
thinking as they themselves are bound by it. More

Yours sincerely

Michael E. Stoker
Insurance Gateway® a division of Stoker Risk and ICT (Pty) Ltd

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