What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Severe Weather Warning

ARTICLE BY

  • Sharon Paterson
  • CEO
  • Infiniti Insurance Limited

SHARE THIS POST

Recent floods in Mpumalanga and Limpopo provinces have once again highlighted the devastation that can occur as a result of flooding. Property owners need to be more aware of the right coverage to insure against weather-related losses. In these circumstances, clients should also seek the advice of an insurance broker with expertise in the physical risk associated with natural catastrophes.

“Having a broker can help homeowners manage their risk exposure by advising them on investing in long-term preventative measures to mitigate and reduce the impact of catastrophes. The short-term insurance industry is currently confronted with a high risk of natural catastrophes as these events are becoming more frequent,” says Sharon Paterson, CEO at Infiniti Insurance Limited.

“However, of greater impact, are the number of flooding events that have not triggered a catastrophe. Flooding now also needs to be regarded as part of what we refer to as ‘attritional losses’. These are losses that we must expect to have and that we build into our rating structures,” she adds.

Managing our risks

A catastrophe is determined by the rand value of claims caused by one event or weather pattern for usually around three days across many insured people. More than one client and higher claims than whatever has been determined as the excess.

Insurers buy insurance on the global market to protect clients against catastrophes. However, the biggest challenge we, as the insurance industry, are facing is to strike a balance between charging a reasonable premium for the cover provided and underwriting risk so as not to prejudice existing clients but not to sign up new clients in areas that are highly likely to be flooded. It can be summed up as “managing our risks”.

5 tips for managing flood risk

With climate-related disasters becoming common every year, homeowners must understand the threats their properties face and how to mitigate them.

Here are five tips on how to manage flooding risks for your home or business property.

  1. Maintain your property regularly and pay particular attention to your roof. A small leak can lead to a water build-up that can result in ceiling collapse and water damage to contents. We do not pay for damage that would not have happened if the property had been well maintained or if the building had, for example, a retaining wall that collapsed because it had not been correctly constructed.
  2. Build retaining walls and perimeter walls. These should be constructed to allow water to flow through. The perimeter wall is often a significant problem, as in many cases the wall is not constructed properly.
  3. Plant indigenous vegetation that is naturally adapted to your region’s climate and soil conditions. Indigenous plants have deep roots that help absorb and retain rainwater, reducing run-off and erosion.
  4. Check the area before you buy or build. We used to look at the 50-year floodline. Now we have significant events that are rapidly changing floodlines.  If the area had been flooded in the past, it is more likely to be flooded again.
  5. There were many discussions on the KwaZulu-Natal floods regarding infrastructure failure – make sure your draining systems are clear, and your gutters are clean.

Paterson says in some cases, clients need to be made aware of the availability of insurance products and to be made aware of their exposure to the risks. “This is when the role of brokers becomes more critical than ever in educating clients to assess the risks and put mitigating steps in place or update their cover. The broker must help assess the risks of underinsurance and provide regular updates and advice on any adjustments to their cover as new risks emerge,” she concludes.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.