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CIB’S Claims Experience Amoung Best in SA Market

Tuesday, June 21, 2016

Johannesburg, 8 June 2016: Clients who insure through CIB are conducting business with one of the best performing brands in the South African short term insurance environment. An analysis of the Ombudsman for Short Term Insurance (OSTI) 2015 Annual report confirms that CIB would have featured in the top quartile of insurers based both on how few of its claims’ decisions are challenged by clients and the number of decisions that are ‘overturned’ by the OSTI.

“CIB’s numbers are not reported by the OSTI because we trade on the insurance license of RMB Structured Insurance,” says Wilhelm von La Chevallerie, Managing Director at CIB. “We wanted to know where we ‘ranked’ against our insurance competitors, so we decided to extract our own claims experience – and the results were quite spectacular.”

During the 12-months under review CIB reported 23 146 short term insurance claims (0.78% of the total claims reported by all insurers for that period). Only 37 of these claims resulted in a complaint to the Ombudsman. CIB’s ‘complaint’ rate is therefore one-and-a-half complaints per thousand claims which is twice as good as the industry average of three complaints per thousand.

Another measure of an insurer’s fairness and equity in dealing with its clients is how many of the complaints considered by the OSTI are subsequently ‘overturned’ or settled in favour of the complainant. The Ombudsman counts each decision that results in some benefit to the complainant in this statistic. CIB achieved an overturn rate of just 21.62%, meaning that the Ombudsman agreed with CIB’s original claims decision in four out of five complaints.

Whether measured on its ‘overturn rate’ or by ‘complaints upheld’ CIB is leaving many of SA’s major insurance brands in its wake:

Company

Claims received by Insurer

Share of claims received by the particular Insurer

Complaints received by OSTI

Share of the total number of complaints received by OSTI

Number of claims Complaints received by OSTI per thousand Claims received by Insurer

Complaints finalised by OSTI

Complaints finalised with some benefit to the Insured

Overturn Rate

CIB NOTE 1

23 146

0.78%

37

0.41%

1.6

37

8

21.62

A&G

108 530

3.64%

327

3.59%

3.0

313

75

23.96

Discovery

79 073

2.65%

184

2.02%

2.3

195

49

25.13

Hollard

364 529

12.23%

674

7.39%

1.8

699

231

33.05

King Price

45 704

1.53%

321

3.52%

7.0

302

52

17.22

M&F

150 812

5.06%

598

6.56%

4.0

584

121

20.72

MiWay

91 018

3.05%

518

5.68%

5.7

528

73

13.83

Momentum

25 755

0.86%

83

0.91%

3.2

82

16

19.51

OUTsurance

284 411

9.54%

509

5.58%

1.8

506

66

13.04

Santam

360 843

12.11%

665

7.29%

1.8

695

206

29.64

NOTE 1 CIB is not an insurer, but writes policies on the RMB Structured Insurance license

“The most important feature of this comparison exercise is that CIB’s broker-advised policies result in around three per 10 000 claims decisions being overturned,” says Von La Chevallerie. “This confirms the value that clients receive when buying their insurance through an insurance broker as well as the competitive edge that CIB’s service oriented insurance model delivers.”

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