26 July 2017 laia
Growing value of assets require expertise when insuring
Despite tough economic times, South Africa’s luxury brand market totaled $2.3-billion (about R30-billion) last year, according to the New World Wealth and AfrAsia Bank study. While this extravagant spending represents a tiny percentage of the total population, the number of international brands entering the country, as well as the increasing availability of expensive electronic devices, means that the average value of consumers’ assets are also generally rising.
This is according to Nazeer Hoosen, CEO at PPS Short-Term Insurance, who states that as a population that lives in a high-tech global village that is mainly capitalistic in nature, people are accumulating assets and wealth at a rapid pace. “It is important to protect against the risk of losing these assets to avoid financial loss, but finding short-term insurance cover that is specifically tailored to suit one’s unique needs can be a time-consuming and rather confusing task to tackle.”
While most people are looking to obtain a competitive premium, they need to ensure that they have the right level of cover and understand the terms and conditions of their insurance policy, he explains. “This is where the value of an intermediary comes into play. An intermediary can guide a consumer in determining their specific exposure of loss as well as the possible occurrence of a liability claim that could erode their wealth.”
An intermediary is a highly skilled individual that complies with a very strict standard of compliance who has the expertise to assess their client’s risk against all insurable perils and advise their client about the appropriate level of insurance that they will require, he says. “Basically, it is an intermediary’s role to help ensure their clients can maintain their standard of living if they suffer loss or damage to their assets as a result of an unforeseen insurable event.”
While there is the option for a consumer to purchase insurance cover directly from an insurance company, the intermediary adds value through their experience and expertise, says Hoosen. “The intermediary will evaluate the client’s assets and risks and find the offer that will best suit the needs of the client. Insurance intermediaries also explain the terms and conditions of the cover to their client in order to mitigate the risk of an insurance claim rejection. They also handle all the administrative work, including communication and documentation on behalf of the consumer to the insurer.”
He adds that intermediaries are also able to assist their clients when they want to update or expand their current insurance portfolio. “For any changes or queries to their insurance portfolio, their intermediary is there to assist. The intermediary can also assist the consumer to review their specific portfolio on an annual basis to best prevent any future complications when it comes to claims.”
“Intermediaries help lessen the hassles related to insurance cover and can provide sound guidance and assistance during traumatic situations, which is usually when insurance is needed most,” concludes Hoosen.
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