|
If there are problems with how this message is displayed,
click here
to view it in a browser.
|
 |
|
Moonstone Monitor - 29 August 2019 |
|
|
 |
Read Moonstone Monitor for CPD
purposes
Click here to register.
|
| |
|
|
| |
|
|
 |
|
|
|
A man can fail many times, but he isn't a failure until he begins to blame
somebody else - John Burroughs |
| |
|
|
Distributed to 55 133 subscribers.
To advertise with us
click here |
|
| |
|
From the Crow's Nest |
|
|
Men Are from Mars, Women Are from Venus – Does this apply
to financial matters as well? |
A recent American survey examined how
consumers are talking about money to their friends, family and financial
advisers. The survey results showed that women are more likely than men
to purposely avoid the “money” topic, 55% versus 45%. Can this also be
true in the way that people complain about financial issues?
In the midst of Women’s Month, the Ombudsman for Banking Services
analysed their complaints to assess if there is a difference between
complaints lodged by women vs men. The Ombud’s office statistic shows
that they received a total of 3 785 formal cases for the year to date,
and only 31% of the complaints lodged in this period were from women.
The number of men and women utilising banking services is much more
even, so why the disparity? Does it therefore relate to the avoidance of
talking about money?
The Ombudsman for Banking Services, Reana Steyn, said that this may be
an indication that either women are smarter than their male counterparts
when it comes to banking products and services, or that they just
complain less. “Regardless, there is always room for improvement,” she
said.
Analysing the complaints
Of the 1 173 complaints received from women, 21% related to internet
banking, 10% to ATM disputes and 9% to personal loans. The overall
statistics for the office list credit card fraud complaints as the
second highest category, noting that it is not even on the list of the
top three categories for women’s complaints.
The ombudsman also noted that “ATM and internet banking related
complaints are about fraud, mainly phishing and card swapping, and
complaints related to personal loans are about the balances on the
accounts.”
A case study to illustrate
Mrs N obtained a personal loan from a bank and in terms of the
agreement, her last payment was due to be made on 25 December 2018.
Unfortunately, she experienced financial difficulty and in April 2015
she tried to make arrangements with the bank to pay a reduced instalment
for a period of 6 months.
It subsequently transpired that the bank had extended the repayment term
of her agreement for a period of 5 years. Mrs Naidoo disputed having
requested, signed or agreed to a restructuring of her account.
The bank’s view was that she agreed to the rescheduling terms and
conditions, as well as the amended loan repayment term and that it was
not reversible.
The Banking Ombud investigated the matter and noted that section 116 of
the National Credit Act provides that a credit agreement may only be
amended if the amendment is reduced to writing and signed by the
customer in confirmation of her agreement with the amendment. In this
instance, the bank was unable to furnish this office with any proof that
the complainant requested or agreed to the restructure of the loan
account. Accordingly, the Ombud recommended that the bank adjust the
loan account in order to place her in the same position she would have
been in had the restructure not occurred. The bank agreed and an amount
of R64 032.15, in respect of additional interest charged as a result of
the restructure, was written-off from the outstanding balance.
Mrs N remained liable to settle the adjusted outstanding balance, which
she was happy to do. Steyn advised that “it is important for bank
customers to keep record of any discussions with the bank regarding
changes made to their account. Bank customers must always request that
such changes be reduced to writing to avoid misunderstandings - a tip
for both you and your client.
Learnings from case studies and research
The National Credit Act is relatively new, and has undergone several
changes of late. The ignorance of the law displayed in the case study
noted above is simply not acceptable, and one has to wonder whether it
was accidental or intentional. Making big bucks by fleecing the
ignorant, while gladly forfeiting the illegal gains without any penalty
is simply not an ethical business practice. A financial adviser found
guilty of such a misdemeanor would have to cough up and face possibly
losing his licence. Now that banks also fall under the Financial Sector
Conduct Authority, we will be watching closely to see whether the same
sauce is dished up for the gander AND the goose.
Another take away is that there is a difference between men and women’s
financial behaviour. It is therefore important to understand these
disparities in behavioural patterns. This will allow us to better serve
our clients, no matter the gender and age.
Click here to access the Ombudsman for Banking Services website. |
|
|
|
ADVERTORIAL
|
 |
2019 Diamond Arrow Award winner
GTC was ranked 1st overall in the 2019 PMR.africa Business
Excellence Awards in the category of pension fund service providers,
administering between 100 000 and 150 000 members.
You should be talking to us about your clients’ retirement fund
administration and counselling requirements:
retirementfunds@gtc.co.za.
Visit our website at
www.gtc.co.za. |
|
|
Your Practice Made Perfect |
|
|
New driving demerit system – What will the impact be on insurance? |
Two weeks ago President Cyril Ramaphosa signed the controversial
Administrative Adjudication of Road Traffic Offences (Aarto) Bill into
law. In general, the Bill will result in the setting up of a demerit
system for drivers, who lose points for traffic offences, which may
ultimately result in the loss of a driving licence.
Whilst government was determined to win the battle against disobedient
motorists and persistent road fatalities with the implementation of the
Bill, it has received lots of criticism in the media from various bodies
and institutions:
|
● |
The Automobile Association (AA) warned that the
system in its current form – if implemented – will
not in any way reshape the country’s roads to become
safer – one of the original benefits. “Instead, this
system seems to have morphed into a better way for
revenue collection by authorities, with no regard
for safety or proper application of laws. The
implementation of Aarto should be prioritised but
weighed against a review of its original
objectives,” the AA said.
|
|
● |
The civil rights group, the Organisation Undoing Tax
Abuse (Outa), has opposed this bill from the start
and is now planning a constitutional challenge to
it, according to Rudie Heyneke, Outa portfolio
manager on transport. He mentioned to the media that
the pilot projects in Tshwane and Johannesburg using
this system over the past decade failed. “The focus
should be on road safety, not on an administratively
complicated system aimed at collecting revenue,”
said Heyneke. |
There is also a huge question on the impact of Aarto on
insurance. The demerit system could potentially be linked to
underwriting criteria as it does reflect driving behaviour.
Depending on how well and efficiently the bill is rolled
out, this new law could see good drivers benefit from better
premiums with the bad drivers being penalised.
Old Mutual’s Insure insurance expert, Christelle Colman,
mentioned in a
BusinessTech article that the demerit system
will have a direct impact on car insurance. “The demerit
system could potentially be linked to an underwriting
criterion as it does reflect driving behaviour, she said.
“Drivers with poor record on this system could face higher
premiums – but that would be at the discretion of each
company.”
Cape Talk aslo chatted to Wynand van Vuuren, Head of Legal
at King Price Insurance, about the impact on a client’s
insurance premium. Wynand touches on the history of
underwriting and shares that it has changed to a more
refined action in the last 10 years to calculate the risk.
Click here to listen to the podcast.
I suppose there are pros and cons to the implementation of
the Bill – the success or failure lies more in how
government will implement it – will it create chaos or
order?
Click here download the Aarto Bill. |
|
|
|
|
|
 |
| |
|
National Health Insurance – Health Minister dismissive of criticism
|
“We are one nation building one health care system. Let's work together.
There is no us and them.” These were the words in a tweet of Dr Zweli
Mkhize, South Africa’s Health Minister. Dr Mkhize attended the annual
Hospital Association of South Africa conference in Cape Town last week.
He addressed leaders of private hospital groups and medical aids and
spoke extensively about National Health Insurance plans.
According to various media reports he accused many people of spreading
"false information" about the Bill. Mkhize denied the Bill meant the
state would nationalise health. He said the perception that the NHI
would result in the nationalisation of private health care facilities
was a "weird idea".
Mkhize added that the NHI could allow the government-run NHI fund to buy
private health care. "What will be possible is entering into agreements
for private facilities to render specific services under NHI in addition
to the public facilities".
"We all have a role to play in fixing our health system, our entire
system. We have a common interest to collaborate in pursuit of health
coverage", he shared.
Mkhize further denied reports about disagreements with the national
Treasury over funding the NHI, and that there is less money available
for NHI, as calculated by the Treasury, than the health department
needs.
Click here to read the media report as published on the TimesLive
website.
Click here to read more about National Treasury’s report. |
|
|
|
| |
|
| |
|
There is a rat in my car – Am I covered?
|
The lyrics of a UB40 song reads “There's a rat in my kitchen what am I
gonna do?” The song also relates to the owner of a Porsche, who
discovered a resident rat in his engine that caused damage of R154 000.
He was one of the lucky ones as his claim was settled by his insurer.
His insurance policy covers damage by animals, excluding domestic pets.
So rat damage is covered, but any scratching, biting, chewing or soiling
by dogs and cats is not.
The detail of this instance is discussed in a recent TimesLive article.
According to Ayanda Mazwi, senior assistant ombudsman with the ombudsman
for short-term insurance, their office receives complaints about these
issues. “The matters are dealt with having regard to the terms of the
policy and the facts of each particular case,” she said. She advised
consumers to find out exactly what form of animal-created damage they
are and aren’t covered for. Not all comprehensive insurance policies
cover damage caused by rodents, so car owners would do well to check.
Click here to read the TimesLive article. |
|
|
|
| |
|
|
| |
|
Technologically Speaking
Moonstone Information Refinery
|
|
Drone technology - An empowering game changer |
One type of insurance technology many insurance companies are using
nowadays is drones. According to DeLoitte there are two strategic
objectives: better risk management through improved data collection,
and reduced operational costs through improved efficiency and
effectiveness related to claims.
Drone deployment is rapidly expanding and evolving, with current and
potential applications spanning the insurance value chain. In
an article, DeLoitte highlights the following:
Pre-loss
Risk engineering and pricing: Aerial site assessments can identify
property features that allow the owner either to seek a reduced risk
profile or to take appropriate actions to lower overall risk and
justify premium discounts.
Natural disaster monitoring: Drones can be quickly and safely
deployed to monitor areas threatened by natural disasters.
Governments working with insurance companies can monitor a situation
and alert local residents to potential danger.
Post-loss
Inspection: Drones can provide a safer, faster, and more
cost-effective way to conduct a site inspection, particularly in
challenging working conditions.
Risk assessment: Drones may allow insurers to engage a generalist,
rather than a specialist, to perform field assessments and obtain
high-quality visuals.
Claims adjudication: The precise photos that drones take can
potentially improve the quality of the claims adjudication process.
Fraud prevention: The moment a property claim is reported (First
Notice of Loss), a drone could be deployed to inspect the claims
site, increasing information capture accuracy and timeliness.
In South Africa, Old Mutual iWYZE plans to be the first South
African insurer to use drones. “The application of drone technology
in our business is an empowering game changer – it will
significantly improve our risk assessments, underwriting and
quantification of assets through improved data collection, field
assessments, high-quality photos, videos and analysis,” said
Christelle Colman, an insurance expert at Old Mutual Insure.
She also mentioned that drone operations will further reduce their
operational, safety and fraud risks; fast-track and improve claims
adjudication and processing; cut operational costs through enhanced
efficiency and ultimately elevate the customer experience.
Click here to read the article as published on the BusinessTech
website.
|
|
|
|
|
Regulatory Examinations
|
|
|
Regulatory Exams – The importance
of the FSCA's RE Preparation Guide |
The Preparation Guide outlines exactly what the examination will be
testing and where to find the information.
Studying the Preparation Guide is in fact the very first step a
candidate should take to ensure that he or she knows what they have to
know, and where to find the required information. This is the best
approach to follow when planning and preparing for the Regulatory
Examination as it is highly effective and does result in a better
outcome.
The qualifying criteria provide the basis of knowledge and skills
against which the regulatory examinations are set. Only questions based
on these criteria will be included in the exams.
Students are therefore advised to download and use the FSCA Preparation
Guide.
Please
click here to download the latest Preparation Guide, which also
includes the most recent updates to the qualifying criteria.
Latest legislation:
To access the latest legislation and applicable Board Notices, please
visit the
FSCA website.
The Moonstone website,
www.moonstone.co.za contains a wealth of regulatory
examination information. Please feel free to browse there to your heart’s
content.
Our registration call centre is available weekdays during business hours (08h00
– 16h00). Contact 021 883 8000 / 888 9796 or e-mail
faisexam@moonstoneinfo.co.za. |
|
|
|
| |
|
Schedules for 2019 |
Please note: Registration cut-off is 11 working days before date of exam.
|
|
|
|
|
Careers Platform
|
 |
| |
|
Featured Positions |
-
Manager: Life Sales:
Vodacom, Midrand - Vodacom Financial services are currently
looking for an experienced Life insurance sales manager. Candidates must
have a relevant degree or diploma and have at least 10 years’ sales
experience within a life Insurance environment. A strong knowledge of
the Telecommunications industry is essential.
Read More
-
Claims Administrator:
Cooke Fuller Group, Kloof - The ideal candidate should be an
assertive individual with strong administration and good interpersonal
skills with minimum 5 years’ experience in Commercial and Personal
claims.
Read More
-
Sales Consultants:
Pioneer Debt Solutions, Durban - To work for this company you
would need Matric, have at least 1-year sales experience and be fluent
in English, Zulu, Sesotho.
Read More
-
Wealth managers:
GTC, Various offices - We are one of South Africa’s leading
advisory practices and have several vacancies for wealth managers.
Positions, for financial planners with varying degrees of experience and
expertise, are available at GTC offices around the country.
Read More
-
Senior Paraplanner:
Excalibur Wealth, West Rand -
Trusted advisor firm of CFP® professionals is looking for a numerate BCom
or equivalent graduate to support their wealth advisory team.
Minimum 5 years experience in a wealth management environment is required.
Read More
-
Short Term Insurance Claims Administrator:
Smythe, Pinetown - Apart from having a Matric and RE5 certificate
candidates must have Domestic and Commercial claims experience on
both Property and Motor Claims (non-negotiable).
Read More
-
Financial Advisor / Broker:
Astute FS, Durban -
Astute FS provides tailor made solutions to both individuals and
businesses for comprehensive financial cover, whether life, health,
wealth or investments. We have an opportunity for a career driven
individual with exceptional communication skill, strong sales and
business management experience.
Read More
-
Personal Lines Supervisor:
Cooke Fuller Group, Kloof -
We are looking for a candidate to manage a team of underwriters. Requirements
include: matric and a minimum 10 years’ experience in the Short-term Insurance Industry.
Read More
-
Financial Planner:
Volker Consulting, Century City, Cape Town
We are a financial planning practice specialising in executive financial planning, employee benefits
and corporate assurance and require a certified financial planner with 5 years experience in these categories.
Read More
|
|
|
|
|
In Lighter Wyn |
 |
|
|
|
Tel: +27 21 883 8000 | Fax: +27 21 883 8005
info@moonstoneinfo.com
www.moonstone.co.za
P.O. Box 12662, Die Boord, Stellenbosch, 7613, Republic of South Africa
Disclaimer:
Services and products advertised by external product suppliers in
this newsletter are paid for by the respective suppliers. Moonstone
does not endorse any opinions, conclusions, data, products, services
or other information contained in this e-mail which is unrelated to
the official business of Moonstone and furthermore accepts no
liability in respect of the unauthorised use of its e-mail facility
or the sending of e-mail communications for other than strictly
business purposes.
The complete disclaimer can be accessed
here.
|
|
|
©2015 Moonstone. All rights reserved. |
