INSURERS MUST HAVE POLICIES AND PROCEDURES THAT ENSURE CUSTOMERS WILL BE TREATED FAIRLY AT ALL TIMES

increased regulation will prove onerous for insurers and will drive up the cost of insurance. For example, your insurer will have to provide you with more detailed information in the processing of your claim, and this will entail having to employ more people.

He says the fact that these regulations now apply not only to individuals but also to juristic entities whose asset value or annual turnover is less than R2 million – in other words, small businesses – will place an additional burden on insurers, who will now have to verify an entity’s turnover or asset value.

Woolley says many of the big insurance companies follow most of these “rules” anyway, and in a less regulated environment, those that didn’t act in the interests of their customers would suffer harm to their reputation.

The costs of compliance are high, and the smaller Insurance companies will bear the brunt of the increased regulation, he says.

Woolley says changing weather patterns are causing global re-insurers (insurers of insurers) to increase what they charge local insurance companies. So, together with the increased cost of regulation, you, the consumer, may well be facing a double whammy in insurance premiums in the coming months.

martin.hesse@inl.co.za