The effects of the COVID-19 pandemic have changed the lives of everyone globally. Over the last couple of months, the world has endured much suffering and is now starting to adjust to this "new normal". Covid 19 has brought increases to many sectors, and this includes the insurance and motor sector. In the next few months, we may see the after math of lockdown, premium holidays, halting in operations and delayed shipments. One of the ongoing effects that insurers have endured over this time is the impact on the supply of vehicles, vehicle parts and paint globally. Paint prices alone have increased by 9% since last year. At the same time, the world is experiencing a severe shortage of semiconductors and microchips used in the production of vehicles. Furthermore, constraints in shipping and global transportation have resulted in an escalation in the cost and time to procure replacement parts. To highlight the severity of this effect, global shipping costs have increased by 170% during 2021 according to the Drewry World Container Index. As an insurer that is reliant on these factors, insurers have experienced this impact first-hand, resulting in a sharp escalation in both vehicle repair costs and the cost of total losses such as write-offs and thefts. Insurers have seen that vehicle repair costs have far outpaced inflation and are up to 9% higher in the last six months alone (resulting in an annualised rate of 18% per annum). The rate of vehicle depreciation from year to year is also lower than historically experienced due to the growing demand for second-hand cars. This is a global phenomenon and has affected vehicle traders and insurers around the world. To keep premiums truly in line with risks, some insurers are looking at special additional increases for clients who have high loss ratios exceeding 80% (over 3 years). The reason that this is being done is to try manage and keep claims and premium contributions fair between all clients under the insurer. At the same time as vehicle claims have been increasing, Insurers have also seen an unexpected rise in the frequency and value of home insurance claims from building costs to electronic replacement items. As an example, in 2021 Discovery Insure experienced 37% more hours of loadshedding than in 2020, resulting in a 23% increase in power surge claims. These global circumstances are unprecedented and far beyond what may be considered normal or allowed for in standard insurance pricing. Contact us to get a comparative and we might get you a cheaper premium than your current insurer, contact Marizka tel (011)658-1333 email: service@daberistic.com
0 Comments
In celebrations of Women’s month we focus on women-specific risk cover against unfortunate events. All Risk Cover Many women we never leave the house without their handbag, it is an extension of us in many ways. It safeguards your cell phone, bank cards, ID, and driver’s license and jewellery. Your handbag ensures you are prepared no matter what your day holds. If you lost your handbag or it was stolen, it would be devastating and a great loss. That is where All Risk Cover steps in. What is All Risk Cover? All risk cover is worldwide cover for personal effect you normally take with you outside. Risk Insurance is another name for Portable possession Insurance. * All Risk Cover can only be included if you have Home Contents or building Cover What items can be insured under All Risk Cover? All risk cover can be taken for any portable possessions you carry with you on a day-to-day basis. Which includes cell phones, cameras, smartwatches, jewellery, laptops, tablets and much more. Any portable electronic devise will not be covered unless you have specified it on your all risk policy, based on their correct value. Recently woman are also able to insure their hair weaves because of the increase in weave theft. A hair weave can cost anything from R2 000 – R10 000 and this can be added in some policies. What are the All Risk Cover sections? 1. Clothing and personal effects - the clothes you wear, as well as the personal items you carry with you, including personal sporting equipment (Limited to a certain amount per item); and 2. Specified items – items that need to be specified for cover, based on their correct value. This includes keys, locks, remote control units, certain collections, bicycles, laptops, tablets, and cell phones. What is included and excluded on all risk cover? With All-risk policy everything is included except if it is explicitly excluded by the insurance company. A great example of a general exclusion will be theft from any vehicle which is left unattended and where the items were not in the locked luggage compartment or locked interior of the vehicle. This will not be covered by the insurance company as it is a specific exclusion. If you would like us do a new or comparative quote, please contact Marizka in our Short-term department email: service@daberistic.com tel: (011) 658-1333 |
AuthorKevin Yeh Archives
January 2025
Categories
All
|