South African Insurance Association

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Business process reviews are key to insurers

The South African Insurance Association (SAIA) says reviewing business processes is an important practice to insurers to institutionalise best practice across all client touch points.

Debbie Donaldson, SAIA General Manager: Strategy and Planning says with increased access to technology and information the claims and underwriting processes have become more convenient and client friendly, however, the cost of insurance remains affected by organised crime activities.

“A key focus point shared by many stakeholders and in particular the police and the short-term insurance through the South African Insurance Crime Bureau, is the cloning of vehicles and the subsequent consequences.     

“In order to protect consumers against vehicle crimes it is critical that we as a short-term insurance value chain increase the quality of vehicle data we utilise across the value chain and provide full visibility of vehicle history throughout the motor chain including ownership and status of the vehicle.”

In addition, Donaldson says it is critical that we apply the code of salvage across our industry including all binding agents, underwriting managers and others that operate on behalf of the insurers. 

The code is currently being revised in line with the revision of the business practices we are required to follow. 

“This has all culminated in the requirements of the entire industry value chain haing to comply with the Second Hands Goods Acts. So the SAIA legal team is currently applying for an exemption to this act based on our member’s request,” Donaldson says.

SAIA Legal Manager, Denzil Olson also says the introduction of the Second Hand Goods Act, 2009 (Act No.6 of 2009) (“the Act”) was primarily enacted to regulate the business of dealers in second- hand goods and pawnbrokers, in order to limit trade in stolen goods, and promote ethical standards in the second-hands goods trade. 

“Our exemption is based on our ability as an industry to effectively manage our deliverables against the South African Insurance Association’s Code of Motor Salvage,” says Olson.

Donaldson further adds that the deliverables of this project will include but not be limited to the creation and implementation of a central system of vehicle information across banks, short-term insurers and motor dealers that will address the governance, technological, data, and reporting needs of the SAIA Code of Motor Salvage.

In conclusion, Donaldson says other deliverables will be the creation and implementation of a governance code for access, security and minimum data collection (standards are to be driven by ACORD), as well as the time frame and implementation plan across all relevant stakeholders.