Mont Blanc Financial Services Volume 1

MONT BLANCFINANCIAL SERVICES

GETTING A CLUE ON INSPECTIONWolfgang Lehman on trailer safety

mbfs.co.za

BEAME US UPYour vehicle has never been safer

HASSLE-FREE CLAIMS?Brett Mcmenamin tells us how

10QUESTIONSTO ASK YOURBROKER

Callie Steyn’s hot tips

VOLUME 1

LIKE ABOSS Mont Blanc CEO Nicola Iozzo talks client care

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PUBLISHER AND EDITOR

Nicola Iozzo

MANAGING EDITOR

Chavé Vrey

PRODUCTION

Media Meme

EDITORIAL ENQUIRIES

011 601 4017

ADVERTISING AND SALES

011 601 4016

Second floor, 17 Bradford Road, Bedforview, Johannesburg, ZA

About MBFS ........................................................ 5

Beame us up ...................................................... 11

Mont Blanc goes Google ..................................... 12

10 questions to ask your broker ............................ 14

Nicola Iozzo: Like a boss ..................................... 16

Machines to help us see the light ...........................18

Swift service ...................................................... 24

Giving employees real benefits ........................... 26

The formula for ‘hassle-free’ claims ..................... 29

We need your assistance .................................... 30

Claims ready: Always ......................................... 32

Intelligent insurance .......................................... 33

Getting it right .................................................... 34

Time to claim? ................................................... 36

We’ve got global warming covered ..................... 38

Getting a clue on inspection

6

EDITOR’S LETTER & CONTENTS

Our first edition of Mont Blanc Financial Services is aimed at you, the client, not at the insurance

industry. This is not a back-patting exercise.We want you, the insured, to know what

affects your claims payout and what your obligations and duties are in terms of your policy wording and the legislation governing it. This is what we had in mind when designing the first volume.

This is a no-nonsense insurance magazine that talks candidly about risk prevention, safety and security, and what it means to be claims ready. This magazine has great aspirations and goals, but none is more daunting or inspirational than our mission to get our clients claims ready.

I especially enjoyed the interview with Callie Stein from Reinhardt Transport about how to evaluate your broker. Read ‘10 questions to ask your broker’ on page 14 to see how your insurer measures up.

We also feature some of our favourite third-party suppliers, talk about risk prevention (page 25) and complying with the Road Traffic Act (page 6), and showcase some great additional products and services.

As we look back at all the changes and challenges that lie ahead in 2015, it is easy to forget what we have accomplished, and the difference Mont Blanc has made in the lives of hundreds of clients and the collective impact it has had on thousands of people.

This is a noble undertaking and an important factor to keep in mind. It’s also just what we do in the insurance business every year.

Yours truly,

Nicola Iozzo

FROM THE EDITOR

MEDIA MEME Professional editing and publication solutions mediameme.co.za

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MBFS

Since its arrival on the short-term insurance scene in 1999, Mont Blanc Financial Services has established itself as a serious

and dynamic industry player. Although the company is still only in its adolescence, it is changing the face of modern insurance as we know it, and has matured into one of South Africa’s premier independent short-term brokers while always aspiring to reach new heights and break new ground.

We strive to retain and grow our client base through providing solid, reliable, technically correct and innovative advice to address any insurance, risk management and financial needs. We’ve fostered a close working relationship with our clients, which is why we consider them more as partners.

As a Mont Blanc client, you will receive innovative, intelligent coverage and service solutions designed for people looking for more than what conventional mass-market insurers have to offer. We protect your home, your

Get a quote today! Email us

at [email protected] and one of our brokers will be

in touch

assets and your future with tailor-made cover at affordable premiums.

Whether it’s for general business or niche markets, planning and implementing a complete commercial insurance programme can be a

complicated and time-consuming exercise. Realising this, Mont Blanc draws on its

extensive range of insurance facilities to protect your business and staff in the most cost-effective way possible by creating personalised commercial products and solutions.

Although we’re here to advise, the final decision is yours.In addition to our extensive range of

cover, Mont Blanc’s employee benefits arm eliminates the guesswork by working with you to find solutions – from life and disability cover to investment options – to suit both your needs and your pocket. Employers can rest assured knowing our specialists will keep them up to date with legislative changes and reform in the industry, and construct benefits that create real value for their staff.

ABOUT

MONT BLANCFINANCIAL SERVICES

6

operators aren’t willing to part with in the quest for higher profits.

Lehman emphasises the importance of training for drivers and shop mechanics: “It would

definitely cut down the accident rate, which results in about 15 000 deaths a

year on our roads.”In an effort to bolster these profits even

further, Lehman has noticed an influx of significantly cheaper but “rubbish” parts from

China that don’t meet safety requirements and regulations.

If operators aren’t going to comply willingly, safety checks and standards need to be enforced in other ways. But, according to Lehman, “metro police

officers have no clue when it comes to safety on trucks and trailers; they’re speeding-fine specialists”.

He adds: “Just because the brake lights come on doesn’t mean

the brakes are working.”They also aren’t

aware of the laws and regulations governing

GETTING A CLUE ON INSPECTION

‘T here’s an ethos in South Africa to make as much money as possible, with

as little maintenance as possible, and hide things for as long as possible – hoping no one discovers the rot.”

This is why, according to Wolfgang Lehman, an independent truck and trailer inspector with 35 years’ experience, we’ve had so many horrific accidents involving trucks on our highways last year alone, the most recent being the horrific pile-up on the N12 in October.

Lehman knows what to look for at a glance, but he’s just one man and there are hundreds of trucks on our roads that wouldn’t make the grade set out in his rigorous check list.

He estimates 65% to 70% of the trucks on our roads aren’t roadworthy, owing mainly to faulty brake parts. But maintenance costs money, something most

Trailers shouldn’t be allowed to just keep on trucking, says expert

Wolfgang Lehman has been

inspecting trailers for more than

35 years

Existing policyholders get free trailer inspections courtesy of Mont Blanc

WOLFGANG LEHMAN

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the transport industry, and they’re often reluctant to fine people in case they get it wrong.

To address this gap in knowledge, Lehman, together with Fleet Watch Magazine, runs nationwide education and training courses for traffic departments countrywide to empower officials to know what to look for when inspecting trucks and trailers.

At one such course in Heidelberg, Gauteng, in November, Lehman opened with a discussion on how to inspect a trailer without getting your uniform dirty – apparently a massive stumbling block for many officials.

Despite the need for it, there’s currently no legislation enforcing pretrip inspection, an area in which insurers can do their bit for road safety by knowing the state of the vehicles and equipment for which they’re providing cover.

“Rather catch it before than wait for something to happen,” says Lehman as a man speaking from experience, because safety is not negotiable.

“metro police officers have no clue when it comes to safety on trucks and trailers; they’re speeding-fine specialists

This horrific pile-up on Johannesburg’s N12 highway in October 2014 was caused by faulty brakes on a trailer

WOLFGANG LEHMAN

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Value: R900 000Premium: R1 650 pm*

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Getting you claims ready!

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With easy installation, national coverage and an excellent recovery rate, Beame’s the perfect vehicle recovery partner for any fl eet management company.

THE ONLY RECOVERY PARTNERYOU’LL EVER NEED

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Our app now makes it even easier for you to test your unit and access all Beame’s

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*A few terms and conditions apply

www.beame.co.zaDownload our new Smartphone app now



Your fl eet is tracked anywhere in South

Africa 24/7, 365 days a year and one extra day

in a leap year, of course!

National NetworkCoverage

Your Beame has a 3-year battery life.

When your unit battery runs low, you

will be notifi ed.

Low Battery Alert

We’ll even install a new Beame when yours needs replacement

- FREE OF CHARGE!

Lifetime Warranty*

Our app now makes it even easier for you to test your unit and access all Beame’s

services. Simply sorted.

Smart App

You get revolutionary

technology at a great price!

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Makes it easy to hide, without affecting

your vehicle’selectronic warranty.

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Nicola Iozzo chats to MiX Telematics’ Brendan Horan about the only radio your car will ever need

‘Nobody wins with the loss of an asset,” says Brendan Horan.

Insurers and their clients alike will tell you that’s hardly an outlandish claim, and the mushrooming of the vehicle-recovery industry in recent years is testament to it.

Horan is managing director of MiX Telematics, the company responsible for bringing us Beame, which is not a “dots-on-the-map tracking product” as much as it is a “very effective recovery device,” according to Horan.

“It’s about getting your asset back,” he adds.

Because Beame doesn’t need to be connected to the vehicle’s electronics system, it can be installed anywhere on a vehicle, including places in which thieves are unlikely to look. Typically, car thieves are able to “either jam or block devices”, according to Horan, but “Beame gives us another signal – a radio frequency – which allows us to recover a unit outside of the ‘golden hour’.”

The golden hour in car tracking lingo is the window period tracking

companies have to successfully recover a vehicle after a car is stolen.

Horan says: “We have been able to find devices well within the golden hour if we get the notification, but also much later.

We have recovered vehicles even as late as a month after the theft,” says

Horan, who is so confident in Beame’s ability to retrieve vehicles, he’s willing

to guarantee Mont Blanc Financial Services customers “their excess up to R150 000, depending on the value of the vehicle”.

He adds: “For anything from a passenger vehicle to an expensive long-haul truck,

we stand by our recovery rate, our effectiveness.”

Just as recovery is hassle-free, so is installation, which takes between 5 and 15 minutes. “For example, we can do a deployment for a small fleet in a day quite easily. It’s not heavy GPS equipment that requires a two-and-a-half-hour installation.

We don’t tap into any wiring,” says Horan.

With all of this for just R79 a month for Mont Blanc Financial Services clients, who wouldn’t want to install a Beame?

“I keep asking myself that same question,” says Horan with a knowing smile.

BEAME US UPBRENDAN HORAN

Get Beame for R79 a month and pay no excess on

theft or hijack claims

Beame’s Brendan Horan says his company has recovered stolen vehicles as late as one month after the theft

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C allie Steyn joined Reinhardt Transport Group in late 2008 when the global financial crisis struck. Due to the economic pressure in African countries, the World Food Program

provided food relief to certain countries and the group assisted. From 2008 to 2009, Steyn was actively involved in cross-border operations in Zambia, Zimbabwe and Mozambique; and in 2010, was promoted to the position of group risk manager to develop a risk programme for Reinhardt with a plan to reduce risk.

In many ways, Steyn’s job at Reinhard entails separating the wheat from the chaff, so to speak, when it comes to insurance brokers. More often than not, brokers are only interested in your business to make a profit rather than understanding your needs and developing appropriate cover that is tailor-made for your business. Good brokers will constantly advise their clients because there is absolutely no substitute for the personal touch.

But how do you identify the good brokers from the rest? They all have the same qualifications and, on paper, comply with the same codes and legislation. What clients really need are brokers who add value to their businesses.

To make sure you aren’t caught short, here are 10 key things Steyn advises you to raise with your broker, either when revising your cover or when shopping for new cover:

Know what you’re getting yourself into

10QUESTIONSTO ASK YOUR BROKER

CALLIE STEYN

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1Give me an overview of your business...Brokers must know their business profiles and provide you

with an overview of their business or the business they work for.

2Do you have any references?Does the broker have a good reputation? Are they

trustworthy? Are they licenced?

3How long have you worked in the insurance industry?

How well does your broker know the insurance industry and its products? Are they up to date with industry news and policy changes?

4What experience do you have with companies with similar risk profiles?

Is the broker knowledgeable in the type of industry? Will they be able to add value to your business?

5How quickly are your claims processed?Does your broker get good claims services from the insurer?

Also ask about the insurer’s track record and typical timeframes.

6Can I meet your staff?Many brokers have limited resources and cannot process

everything on their own. Their facilities and resources will give you an idea of how they operate. How switched-on is their staff?

7How often do you contact your clients?Does the broker maintain good communication with their

clients? They should be easily reachable should you have any queries; and get in touch frequently enough not to annoy you, especially to update you on any new developments in the industry you might want to take advantage of.

8How can I improve my risk profile?Brokers must tell you how they can add value to your

business, help reduce your risk and keep you informed on ways to finance certain risk.

9What additional resources do you have?Brokers might be able to assist you with other needs

such as life insurance, aviation insurance or special offers for your staff.

10What differentiates your firm?Does the broker think outside the

box? Will their company add value? Will they be the business partner to assist you and find solutions for your insurance problems?

“how do you identify the good brokers from the rest? They all have the same qualifications and, on paper, comply with the same codes and legislation. what clients really need are brokers who add value to their businesses

CALLIE STEYN

Take note of Callie Steyn’s 10 hot tips to make sure you

don’t come unstuck with your broker

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‘Clients don’t care what you know until they know that you care’

Nicola Iozzo arrives on time for our interview on a rainy Monday afternoon and ushers us into his

spacious office on the top floor of Mont Blanc Financial Services’ high-tech headquarters in Bedfordview, eastern Joburg.

He sits casually at the meeting table, wearing a slim-fitting pin-striped shirt, somewhat revealing the reasons behind his Twitter profile being linked to his Fitbit. His Rolex catches what little afternoon light the day has to offer.

He exudes confidence. His eyes are focused, giving one a sense of how he has taken Mont Blanc from being a tiny startup to a multimillion-rand business in just 15 years.

As the chief executive of Mont Blanc, Iozzo has been around the short-term insurance block and then some. After spending a few years as a stockbroker at JP Morgan in London in the 1990s, he was drawn back home by the opportunities the local short-term insurance market presented. And he’s never looked back.

What differentiates Mont Blanc from the rest of the pack, according to Iozzo, is the company’s philosophy of growing a broker team that is paid to look after clients, not merely write them.

“I often say that this is the best job in the world; I get paid to make friends,” he exclaims with a wry smile, adding that Mont Blanc’s success lies in its ability to pay brokers accordingly for maintaining Mont Blanc’s high standard of service to its clients.

It’s an approach that has worked. “We’ve nailed it when it comes to ensuring our broker force looks after the client.” Iozzo has a salesman’s instincts, for sure, but he has no intention of selling anyone down the river.

There’s a jocular openness about him, and his blokeish humour makes him all the more amiable. You believe him when he says he has the client’s best interests at heart.

With solid technological infrastructure also in place, Mont Blanc wraps cutting-edge IT into its offering, keeping its clients up to speed with innovation and contemporary best practice.

“We use tech to enhance the human element,” says Iozzo, emphasising once again the importance of good old-fashioned, face-to-face human interaction.

All of this culminates in a single phrase, as coined by Iozzo: “Getting you claims-ready.” It might sound like industry jargon, but it’s not.

What it means is Mont Blanc ensures it complies with regulation

so its clients don’t have to. “We make sure our clients stay compliant. When you use a broker, you have a safety net. A client wins when there is a claim. We’re for the client getting paid,” he says unflinchingly. That’s not something you’re likely to hear from a broker very often. “Insurance is about trust,” he says.

“It’s something a lot of people don’t consciously realise, but when you get a word-of-mouth referral, you know your company is doing well.”

LIKE A BOSS

“a client wins when there is a claim. we’re for the client getting paid

NICOLA IOZZO

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Nicola Iozzo steps off his chopper like a champion

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T ired drivers are dangerous drivers. And because the South African economy is so dependent on road transport to

keep it ticking, many drivers are required to put in long shifts. For these drivers, as the roads recede, one farm simply bleeds into the next.

When tired drivers are in control of hauling tons of metal down the highway, a moment is all it takes for things to go horribly wrong.

Although Africa is home to just 2% of the world’s vehicles, a staggering 16% of road fatalities globally occur on the continent. Falling asleep at the wheel is one of the leading causes of these fatal crashes, rivalling even accidents resulting from speeding and reckless driving.

And the cost is huge. In South Africa alone, road accidents are estimated to lead to a loss of R309 billion, and more than 17 000 lives, each year.

When considering that fatigue-related accidents are 50% more likely to result in death or injury because of reduced reaction time, this figure becomes even

more horrifying.So what’s being done to make the roads

safer for us all?Enter Seeing Machines, a novel solution

from Insurance Underwriting Managers (IUM) which, going on figures obtained from its demo phase, reduces fatigue-related incidents by as much as 80%.

According to IUM chief operating officer Callie Steyn, an average freight company typically has about 12 fatigue-related incidents per truck per day. But with Seeing Machines installed, that figure drops to just two per company per day, a minuscule proportion by comparison.

Steyn cut his teeth in the logistics industry before joining IUM. “There are many similarities between logistics and insurance, and over the years I have learnt to ask the right questions,” he says.

But there are also certain key differences, and Steyn is “happy to bring the

knowledge over”.He says: “I’ve worked with

risk management and you can never eliminate risk, especially

SEEING MACHINES

Get ready for an 80% reduction in fatigue-related road accidents

MACHINES TO HELP US SEE THE LIGHT

The in-cab equipment

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SEEING MACHINES

with road transport. But it’s our duty to try mitigate it.”

That’s where Seeing Machines comes in. The driver safety system is a fully automatic, fully integrated and industrialised in-cab monitoring system that monitors driver fatigue and takes action immediately, before it’s too late.

“There are three parts to Seeing Machines as a solution to managing fatigue. The first is to wake up the driver with an alarm and a device that vibrates as soon as the system detects a fatigue-related event,” explains Steyn.

Seeing Machines is not a CCTV system. It “I’ve worked with risk management and you can never eliminate risk, especially with road transport. but it’s our duty to try mitigate it

An average freight company typically has about 12 fatigue-related incidents per truck per day, but with Seeing Machines installed, that figure drops to just two per day per company

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tracks a driver’s eye movements and monitors “distraction events”, and alerts the driver and the IUM call centre in real time using web-enabled technology when there’s a transgression such as a driver nodding off or using a cellphone.

“The second part of the solution is to measure the events and compile reports to establish trends,” says Steyn, explaining how, when a fatigue-related incident is registered, the IUM call centre notifies the insured. This notification happens at various levels of management, depending on the number of incidents that have been recorded in a single

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DSSSUSTAINABILITYSystem Enabled &Fatigue Management PlanImplemented

80%REDUCTION IN FATIGUE EVENTS

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SEEING MACHINES

Policy / ProcessOptimisation

Database /Reporting

HR / OH&S / OPERATIONS

Corporate

POST-EVENTRISK REDUCTION

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Seat Vibration &Audio Alert

Fatigue / Distraction /Inertia Detection

OPERATOR

IN-CABMITIGATION

Vehicle24/7 MonitoringCentre

shift – part three of the solution.According to Steyn, there are

“more companies than ever managing and financing risk, and because driver fatigue is a big part of risk management, most of these companies offer fatigue policies, but there’s no analysis”. In saying this, Steyn affirms IUM’s superiority in the industry because, as he says, the competition run their systems in “dark mode”.

IUM clients have been trying out the Seeing Machines demo model since October 2014, and the company plans to take it to the open market in July 2015. Judging by the success of the demo, Steyn expects uptake to be significant. And with the drastic reduction in risk it offers, that’s hardly surprising.

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Quick, comprehensive cover from brokers who care

Sonika Swift is domestic sales manager of short-term insurance at Mont Blanc Financial Services for a reason.

She’s risen to the top of the short-term cover game because of her extensive industry knowledge and her insistence on putting her customers first, even though they don’t always recognise the value she brings at first glance.

“Buying insurance is a grudge purchase,” says Swift. “You don’t want it, but you have to have it. And consumers generally think they benefit when they buy insurance direct. Clients perceive any middle man as an unnecessary third party, and conventional wisdom dictates that this means additional costs and possibly mistakes,” she says.

But conventional wisdom, as the saying goes, is often wrong. “With a direct insurer you have hidden costs – not necessarily in the premium. Your excess might be higher to give you that ‘extra’ discount. Administrative fees add up, as does the cost of telephone calls getting through to them. Has your insurer called you for your annual renewal? Did they call you to update your values and decrease your premiums? This is what costs you more,” she cautions.

Swift says it’s a misconception that brokers and insurers are always at odds with each other. They can also leverage

off each other. “Why would insurers provide special broker pricing?” asks Swift. “Simple: the risk is lower for the insurer. Brokers are professionally trained to choose the right policy for their customers and not to underinsure,

thereby avoiding unnecessary claims while maintaining the correct premium

income.”In trying economic times such

as these, low premiums attract customers. But the more you add to your policy, the lower your premium gets, so it makes sense to consolidate

your insurance products with your broker. “If you just have a motor policy,

the premium will be more, but if you have household contents as well, the motor section gets discounted. The more policies you have, the lower each section’s premium becomes,” she

explains. Swift ensures clients get the “personal

touch”. “One broker who does all your

amendments, queries, claims – everything. Clients have our personal contact details. In case of an emergency or if they don’t know

what to do regarding insurance, they can call their personal broker

for the correct advice and the best option,” says Swift.

When you consider all the benefits you get, the question isn’t “Why have a broker?” It’s “Why wouldn’t you

Sonika Swift knows good service makes for happy clients

SWIFT SERVICESONIKA SWIFT

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For those of you who might think of Mont Blanc Financial Services as just another short-term insurance broker,

think again.Through Mont Blanc Employee Benefits,

the long-term and life insurance arm of Mont Blanc Financial Services, your business’ employees will be covered comprehensively, in the true sense of the word.

This is according to Gary van den Berg and Liz Randles, who head up the employee benefits division’s front office and support services, respectively.

As a precursor, Van den Berg says: “If you want to make the benefit really beneficial, you’ve got to go from A to Z.”

There are three components to Mont Blanc Employee Benefits: a corporate brokerage, which offers retirement and risk cover; corporate insurance, which buys and sells insurance policies, and formulates shareholder agreements; and healthcare, which offers health and wellness cover.

According to Van den Berg, these things all fit together by means of “tailored packages for clients” that are benchmarked by “sitting down with the company and saying ‘let’s talk to the employees to maximise their contributions’,

tracking the future value of their money in terms of today’s income”.

In this sense, Mont Blanc Employee Benefits’ primary goal is to understand the real value of employee contributions. “While the average broker is just selling policies, we are looking at real benefits,” says Van den Berg.

The division is kept “running smoothly” by a tight support services infrastructure, which, according to Randles, functions as the “engine room” that sees to compliance with legislative requirements, ongoing administrative support services, and education and training.

Van den Berg adds that the key to success in the long-term and life insurance

game, along with good back office support, is “getting the right levels of cover and making that cover meaningful by means of accurate benchmarking”.

It’s no surprise, then, that the employee benefits division boasts a clientele that includes multinationals such as Canon and

British Airways, and will no doubt continue to expand.

Mont Blanc Employee Benefits’ Gary van den Berg says his

company looks to provide real benefits, whereas most

brokers just look to sell policies

Mont Blanc’s benefit scheme ensures staff are well looked after

GIVINGEMPLOYEES

REAL BENEFITS

GARY VAN DEN BERG & LIZ RANDLES EMPLOYEE BENEFITS

We get you insured

EMPLOYEE BENEFITS

LIFE

INVESTMENT

BUSINESS

CALL US NOWwww.mbfs.co.za [email protected]

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We get you insured

EMPLOYEE BENEFITS

LIFE

INVESTMENT

BUSINESS

CALL US NOWwww.mbfs.co.za [email protected]

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28SINTERED COMPACT SURFACE

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29SINTERED COMPACT SURFACE

NEO_AD_18_NOV2014_FA.indd 1 21/11/2014 15:23

In a world filled with fraudulent claims, insurers are becoming increasingly sceptical when it comes to paying out. Though none

of them want to be known as the “company that never pays”, they have an obligation to their bottom line. So what makes good business sense is for these insurers to offer their clients the opportunity to maintain their electronic security and surveillance equipment.

Statistics from a medium-sized business that carries out risk assessments in Gauteng show that just 70% of commercial alarm systems are adequate; and of those, 30% are not operational. The problems most commonly discovered are due to a lack of maintenance.

In the case of alarm systems, for example, backup batteries need to be changed every 12 to 24 months, depending on supply requirements; transformers need to be tested for charging capability; power supplies for peripheral devices that are not monitored should be checked every three months; and outdoor beams and sensors need to be adjusted seasonally to ensure integrity.

CCTV products have become more prevalent over the years, not only for security purposes, but for production control, stock control, and people-counting and alarm

integration using specialised analytics. But the common perception is that the system can be installed and will work indefinitely without routine maintenance.

But unfortunately, when criminals strike, the victims have salt rubbed into their wounds

when they try recover more information on the situation only to find the hard

drive did not record for the past three months, or that the cameras had no night vision.

How can we ensure claims are “hassle-free”? Two words: “assess”

and “maintain”. Your service provider can assess your current systems and

recommend any repairs or upgrades based on their knowledge of the current criminal modus operandi and what the market has

introduced to counteract it.A service-level agreement should also

be entered into that sees the conducting of monthly services and system integrity checks. The advantages of these agreements are twofold: clients enjoy peace of mind, and the insurer is aware

that measures have been put in place by the insured to prevent losses.

The cost of technological interventions to your security

systems, combined with the benefits of service-level agreements, should not even be a consideration

Brett McMenamin

CLAIMS

Nkulu Security’s Brett McMenamin explains how routine maintenance can smooth the claims process

THE FORMULA FOR

‘HASSLE-FREE’ CLAIMS

Mont Blanc clients receive a free security health check

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Hooyberg Attorneys is a bespoke law firm specialising in property law, commercial law, criminal law and litigation, including

insurance litigation, which is one of its niches. The firm’s Bedfordview office deals with subrogated insurance claims. Here, claims are investigated and considered so that you, the insured, can help overcome them.

Your insurance premium means you’re covered for certain eventualities. Accidents happen. The possibility of a vehicle collision is a given, if not a predictable eventuality for every driver. For the insured, insurance cover is a quick fix. You’ll be almost immediately compensated for damages sustained to your vehicle. But once your claim is settled, a potential long haul begins for your insurance company.

Did you know that it can take several years from the date of an incident for the ensuing trial to reach a courtroom? While you’re already driving your new or repaired vehicle, for the insurer’s lawyers, 90% of the time the integrity of evidence is compromised – documentation is unavailable and eyewitnesses are unreliable, or worse, uncooperative or untraceable.

For example, imagine you own a large haulage company and employ several drivers. One of your drivers is involved in a road accident. Your insurance company pays out immediately and it’s back to business as usual.

But your insurer still seeks damages from the other party, and only manages to secure a court date several years down the line. In the meantime, for whatever reason, that driver no longer works for you. The law firm handling the case must then attempt to trace the driver as a witness to testify at the trial.

Hooyberg is currently embroiled in a similar battle. Despite several attempts to trace a relevant witness to testify on behalf of his

previous employer, the insurer now faces the unfortunate reality of the trial being

postponed. The witness involved faces possible arrest if he fails to comply with his subpoena. This means that any consultations and preparations for the trial will take place behind bars, just hours before the hearing. It’s not

an ideal situation for anyone involved.While insurance offers aggrieved

parties a quick fix to continue with business as usual, the effects of the incident continue behind the scenes for some years to come. As the insured, having some basic administration practices ties reliable and credible evidence up in a bow and paves the way for a far smoother and speedier resolution.

Understandably, for the insured, this stage of proceedings is no longer a concern. Your claim has been paid out and you hardly remember the incident. But with some basic administration, you can assist us in overcoming these common problems.

After your claim is settled, a potentially long battle for your insurance company and its legal team begins

LITIGATION

WE NEED YOUR ASSISTANCE

Contact Hooyberg

Attorneys on 011 615 0437

or [email protected]

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LITIGATION

HOW YOU CAN HELPl Always keep a record of your

employees’ residence and next of kin

l Update this record annually and inform your insurance company of any changes concerning employees involved in ongoing claims

l If an employee who is involved in an ongoing claim leaves your employ for any reason, inform them that their assistance might be required in future and make a record of his forwarding details

l Try obtain a copy of the police accident report as soon as possible after the incident so it does not have to be tracked down months or even years after

l Have copies of the vehicle registration papers and the vehicle finance agreements readily available

l Educate your drivers to take photographs with their smartphones at the scene of the incident, including damage sustained to your vehicle, other vehicles involved, the final resting position of all vehicles involved, any road markings or relevant road conditions, and weather and lighting conditions (provided they are not injured)

l Have the driver give a detailed statement and produce a diagram as soon as possible after the incident

l Have a copy of the driver’s professional driving permit at the time of the incident

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Mont Blanc’s brokers ensure their clients are compliant and covered before there’s a problem

W hat does it mean to be claims ready? Mont Blanc coined the phrase – it is our thing – but what does it actually

mean? How does a client interpret that phrase to understand the value the company gives them through it?

Getting clients claims ready isn’t a one-off thing when they take out policies; there’s not a specific time period when we do it. Making sure clients are claims ready is a continual process, which we ensure through updating fleet values, making sure additional Beames are installed, and checking that clients know which security company they are linked to.

For clients with fleets, it also entails sending master trailer inspector Wolfgang Lehman out to do health checks on trailers (see page 6). “Clients often think that if their trucks are given the green light at a testing station they are in the clear, but their trucks have to stay fine for the whole year until they get tested again,” says Nicola Iozzo, chief executive of Mont Blanc Financial Services.

Lehman’s value in getting clinets claims ready comes through the health checks he performs on trailers – old and new alike. According to senior broker Pieter Bosman, “the value we provide comes through day-to-day risk management, not only on trailers but through surveys conducted on buildings and speaking to clients about their risk requirements: what do they have in place currently and what are they doing about it?”.

“The difference between Mont Blanc and other brokers is that most brokers claim to be risk managers, but when it comes down to it, they are just paper tigers. They manage your risk on paper, look at your portfolio, adjust values here

and there and do a renewal and look at what is on your policy, but they don’t actually consider your risk. They don’t know the clients’ premises, they don’t know the clients’ fleets. Half of them don’t even know what their clients’ trucks look like!

“We are not like all the other guys. We are not just risk managers on paper. The difference between us and other brokers is that the others say they manage your risk by just looking at your policy and upping your premium and excesses when your claims get excessive, but we go in and look at why your claims are excessive – why do you have so many burglary claims?,” adds Bosman.

Senior broker Marc Malinsky sums up the company’s policy of ensuring claims readiness as “making sure the solution we are providing is airtight. We cover all the ‘what ifs’ and possible eventualities that can come about, and focus on a holistic solution package.”

Bosman agrees. “Any broker can send an assessor to go and inspect a client’s trailer or truck, but it always happens after the claim. We do it before there’s an issue. Is the client training its drivers? Is it implementing measures to prevent loss, such as fleet management and installing drive cams?”

Iozzo emphasises that getting clients claims ready also entails ensuring clients comply with the terms and conditions of their policies so they can claim successfully. But “some terms and conditions are not in the policy wording – it is just law of the country, and if you transgress the law, you don’t get paid. We go further than just the policy wording and conditions to make sure our clients stay on the right side of the law, and are always ready when they make a claim.”

CLAIMS

CLAIMS READY:

ALWAYS

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Retirement data has shown a growing trend by South African retirees towards investing in living annuities, despite

the fact that this option might not be the best suited for their needs and could leave them in precarious financial positions.

According to the Association for Savings and Investment SA (Asisa), 89% of money used to purchase compulsory annuities in 2013 was invested in living annuities, up from just 59% in 2003. A living annuity is a flexible investment product from which policyholders may choose a drawdown rate of between 2.5% and 17.5% of their residual capital annually.

A living annuity can appear appealing, as one is able to determine how much capital they wish to draw each year; and after one passes away, any remaining capital can be left to family or an estate. But the reality is that many people draw all of their capital before they die.

The best-practice approach for drawdown rates is not to exceed 5% in order to minimise the erosion of capital. But the average South African living annuity policyholder exceeds this figure. According to results from Asisa’s most recent Living Annuities Survey, living annuity policyholders withdrew 6.63% on average. Encouragingly, this figure is down nominally from 2012’s rate of 6.77%, but there is still great room for improvement.

Adopting the lower end of the drawdown scale means the income provided might be unlikely to maintain your standard of living

without a secondary income, while favouring the upper end of the scale could mean a higher level of income. But this presents the risk of running out of money long before you die.

The key to weighing up policies is longevity. It’s imperative to consider whether you will have enough money to sustain yourself for rest of your life with no other source of income.

The other option available to investors is a life annuity, which means you are guaranteed a series of fixed payments throughout your lifetime.

The fixed payment is dependent on the total amount invested, your life expectancy,

and even the interest rate on the day the annuity is purchased.

Those planning for retirement should not discount the assurance and low risk offered by life annuities. Both single-life and joint-life annuities

guarantee a monthly income for the rest of your life, while the latter will also

cover a spouse in the event of the main beneficiary’s death.

It is impossible to predict the future, including how long your retirement period will last. But life annuities place the risk of the length of the policy squarely on insurers, meaning you and/or your spouse need not estimate how far you might have to stretch your money. This assurance means you can enjoy your retirement.

Before deciding on an annuity, it is crucial to speak to an accredited financial adviser to ensure you carefully scrutinise all the costs associated with the policy against the returns expected in order to make the correct decision to suit your specific needs and circumstances.

All that glitters is not gold with living retirement annuity policies

INTELLIGENTINSURANCE

RETIREMENT ANNUITIES

Do your homework

before deciding on a retirement

annuity

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W hile shopping around for the cover that best suits you, it’s easy to become disillusioned by all the

promises every run of the mill insurance broker out there is most likely trying sell you. Luckily, there’s no need to look any further – Mont Blanc Financial Services is no run of the mill insurer.

We offer a range of innovative, intelligent coverage and service solutions through professional planning and the implementation of a complete insurance programme. Our experienced, qualified and friendly staff will detail the best options available to you, and in most cases, provide you with a tailor-made solution at highly competitive and affordable premiums.

Because choice is as daunting as it is liberating, Mont Blanc gives you a selection of only the best insurers out there, cutting out your exposure to any fly-by-night providers or chance-taking middlemen. Whether you’re in the market for personal, lifestyle, commercial or long-term insurance products, our formula for success is by and large dependent on recognising the rights of our clients.

What do these rights entail and how can you ensure you are well within them? Here’s a guide to understanding and accessing your rights, as guaranteed to you by Mont Blanc.

First and foremost is your right to be treated with honesty, integrity and transparency. We ensure any statements we make – whether in advertisements, circulars, or publicity or promotional material – are factually correct and do not contain misleading or extravagant claims.

As a Mont Blanc client, your interests always come first. Of paramount importance to us, especially in this day of information sharing, is that your personal info is kept confidential.

We assure our clients that, in case of

emergencies or when they need to claim, a dedicated broker will always be on call and at hand to dispense professional advice, and make the most appropriate arrangement for whatever it is you need assistance with.

We also provide regular broker visits at your premises or place of choice, where the broker will review your portfolio and provide advice to ensure your cover continues to meet your needs, and that your premium buys you the best value.

Your broker will maintain, renew or service all your financial needs and obtain comparative quotations from the host of quality insurers we

deal with to determine which products best suit your needs and risk profile.

Not into admin? Your broker will handle the policy administration for you and act as an intermediary between you and the insurer to ensure the claim is handled effectively and finalised quickly. It goes without saying

that all our brokers are compliant with relevant legislation and regulation in the

insurance and financial services sector, and constantly keep themselves updated and in touch with developments in legislation and regulation.

Our value-added products and services include a claims-handling process that is hassle-free. This means access to a 24-hour call centre and a 10% discount on your excess when the correct claims procedure is followed.

If you’ve not yet heard of MiX Telematics’ Beame tracking service, you have not been enjoying the benefits of the best possible wireless recovery device on the market. As a Mont Blanc client, this cutting-edge service will be provided to you at a discount. We will also verify your foreign driver’s licences at no extra cost.

And if this doesn’t offer you complete flexibility, comprehensive coverage, peace of mind and the rights you deserve as a client, nothing will.

Our clients are always right – because they have rights

GETTING IT RIGHT

Client rights are of paramount importance to Mont Blanc

CLIENT RIGHTS

With Fedhealth I always win.

Call our contact centre on 0860 002 153 or visit fedhealth.co.za

STUART MARAISExtreme sportsman. Family man. Risk taker.

REAL Medical Aid for REAL people:

What sets us apart is that, along with our superb medical aid options, we offer value-added benefits such as unlimited GP visits to Network GPs; child rates for financially dependent children up to 27 years of age; professional and extreme sports cover; post-hospitalisation treatment for up to 30 days after discharge from hospital; and the dedicated Fedhealth Baby Programme.

With some of these tangible benefits we pay more from Risk than other schemes to ensure that day-to-day medical spending not only goes further, but also works harder for you.

Fedhealth Stuart MEADOW STAR.indd 1 2015/05/07 10:01 AM

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A good broker makes himself available 24 hours a day, especially in the commercial

space. So as a client it’s important to always have your broker’s number at hand and immediately call him/her if you are unsure of something before you make a mistake during an incident that requires a claim.

According to senior broker Marc Malinsky, there are certain types of things brokers should advise clients on beforehand. He says: “I have a situation where a client was smashed in the front and the back. Both incidents could have either been on the same or separate days, but because they were two different events, there were two different excesses. This is where broker advice is critical.”

Malinsky says the pitfalls of not contacting your broker immediately in the event of a claim or at the time of a loss could include incurring additional costs and penalties levied by suppliers such as tow truck companies and storage facilities. Contacting your broker immediately is key to putting preventative measures in place, says Malinsky.

The reasonable person must do everything they can to mitigate or reduce losses incurred. Your broker can help you if you’re unsure. So why not call him/her and ask what you need to do? Believe it or not, brokers would rather you call them at 2am than have a small mess turn into a large one. A small claim or problem can be contained almost immediately.

There are three fundamental steps in the claims process. According to Malinsky, the first step entails calling your broker, the second step

is to explain clearly what happened, and the third is getting your broker to call the insurance company for you.

“All good insurers have call centres,” says sales director Zita Hutchinson.

Some brokers will place you with various insurers for various reasons, so its no use trying to call insurers directly – rather get your broker to do so. Another important thing to remember, according to portfolio manager Tanya Iozzo, is not to admit liability. “Phone your broker,” she says, emphasising the importance of using your broker as an intermediary to get your claim sorted out.

Leave it to your broker, the professional

CLAIMS

TIME TO CLAIM?

CLAIM COMMANDMENTS

Do Don’t

l Admit liabilityl Let anybody

tow your vehicle

l Act as though you’re uninsured

l Forget to get the details of third parties

l Trust the system to look after you

l Phone your broker

l Take photos/video of the incident

l Obey the lawl Report the

incident or loss at the nearest police station and get a copy of the police report

l Trust your broker

“contacting your broker immediately is key to putting preventative measures in place

✓ x

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Begin your year at the newly launched BDA GYM in Bedfordview

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BDA Magazine Advert.pdf 1 2015/02/09 02:35:36 PM

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WE’VE GOT GLOBAL WARMING

COVERED

Globalisation has no doubt boosted the global economy, and transport has played a major role in bringing countries

together. Most cargo is transported around the world by sea, and although shipping is still seen as one of the safest modes of transport, this perception is changing.

A study conducted in 2000 by the Energy Information Administration revealed that the major causes of pollution in South Africa are air and marine transport. There’s no denying pollution from sea transportation contributes significantly to global warming, but what are the implications for the marine insurance industry?

This creates a new threat for the marine insurance industry, which could cost it millions if it is not properly monitored. Changes in weather conditions as a result of “acts of God” have become a concern worldwide as weather patterns change drastically, posing challenges to logistics and shipping companies.

This has given rise to a greater need for insurers to re-evaluate the risk associated with maritime shipping, and invest in technology to detect the risk and develop the underwriting skills to mitigate it.

Cape Town periodically experiences severe winds that result in shipping delays, leading to a decline in profit, a dent in reputation for companies whose cargo is delayed, and insurers having to deal with potential claims.

In December 2014, Durban experienced

similar conditions when empty containers were toppled by strong winds in the container terminal at Durban Harbour. Although no one was injured, this had a negative impact on the shipping schedule as it resulted in delays.

Another such incident took place in Port Elizabeth’s Blue Water Bay area the month before, when a container ship lost 23 large containers when it encountered strong winds. Many of the containers were not recovered, and although none of them were carrying any environmentally hazardous cargo, floating containers pose a serious threat to marine pleasure craft such as yachts and commercial vessels, and also increase the potential for passenger and third-party liability claims to marine insurers.

Further inland, Gauteng experienced severe hailstorms in 2013 that resulted in more than R1 billion in claims to insurers across the province. These days, many insurers warn their clients when hailstorms are imminent to avoid a repeat.

Changes in weather conditions should be a priority for every insurer. Insurance companies need to improve their underwriting skills to receive positive returns, invest in educating their employees and find ways to detect risks before they hit the market.

Working with the SA Weather Service and other related agencies can eliminate the risks and help insurance companies see positive returns.

Insurers must be aware of the risks associated with climate change

AMUA

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Land, Sea and Air. We've got you covered.

Providing wider, flexible cover for all your marine insurance needs. Whether it's marine cargo, transit and related liabilities,

marine hull or marine liabilities - we've got it covered.

• Marine cargo (includes imports and exports) • Hull (includes commercial, fishing and pleasure craft) • Transit and related liabilities (includes goods in transit, hauliers liability) • Marine liabilities (includes charterer’s, ship repairer’s, stevedore’s, warehouse, marina operator’s, container’s, boat building and freight forwarder’s liability)

For more information about our marine insurance products, speak to your intermediary or contact any of our offices across South Africa.

Cape Town 021 915 8000 │ Durban 031 203 4000 │ Johannesburg 011 912 8000 Port Elizabeth 041 393 6200 │ www.associatedmarine.co.za

A division of Santam (FSP licence: 3416)

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CS_AD_Insurance Advice.indd 1 21/11/2014 15:20

Documents

Mont Blanc Financial Services Volume 1