IconAccounting & Tax
IconAppraisers & Valuers
IconArbitration Services
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompany Secretarial Services
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFire, Storm, Flood Damage Specialists
IconForensic Investigation Services
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOutbound Sales
IconOutsourcing Companies
IconPolicy Administration
IconPremium Financing
IconPublic Loss Adjustors
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
  Subscribe To »

Innovative risk management can aid service delivery






By Pride Choruma, National Manager: Public Sector, Lion of Africa Insurance
The Public Sector risk management framework has great complexity in the modern day South Africa. The question is: How to maximize the limited financial resources available in the public sector? There is a massive investment in infrastructural development to re-ignite economic growth. At the same time, an increase in labour and service delivery protests are already taking their toll on municipalities, posing a threat to sustainability.
The numbers speak for themselves: the recent student protests, for example, led to damage claims of nearly R100 million in less than two months. SASRIA also reported in its 2015 integrated report that claims in that financial year spiked by 54% due to labour and service delivery protests (which had increased 33% over 2013/14). More recently, Metrorail in Cape Town has been the target of protests and vandalism.
Violent and disruptive actions such as these have become more common and are clearly cause for concern. And with this now being a fairly common occurrence, the potential for increased unrest has been growing.
Local, district and provincial authorities as well as State Owned Entities, are therefore at far greater risk during these times, which calls for appropriate measures to manage their risks. Transferring risk through insurance might be one of the most effective ways to achieve this. Insurance offers cover for assets and infrastructural projects. These entities need to cover themselves against damage to existing infrastructure; to cover for new and ongoing projects that may further hamper their ability to deliver their services to communities. This will also help them to align with sound risk management controls and good governance protocols, which apply to all organisations, to mitigate threats to their ability to operate effectively.
While an institution such as SASRIA offers some protection against undue financial losses, proactive public sector managers are well advised to seek additional insurance solutions to cover themselves against exceptional losses that can go above SASRIA limits. Firms such as Lion of Africa Insurance are well positioned to provide appropriate top up cover that will offer additional compensation to public institutions against such potential catastrophic events.
While general insurance cover may be sufficient for general circumstances, public sector managers also require nimble, intelligent insurance solutions that offer additional cover for extraordinary circumstances.
The same principle applies to exceptional events such as natural disasters and changing weather patterns. Coastal regions, for example, are at a far greater risk from such events than they were 10 years ago and this should be factored into any risk management and mitigation strategy.
Insurance, therefore, is no longer a matter of one size fits all – it requires an appropriate solution designed to meet a specific need or threat.
Source: Cambial Communications
« Back to previous page Print this page » |

Breaking News »

The Implications Of Overloaded Vehicles On Your Insurance Policy

Overloading – it’s a common occurrence on our roads. If we don’t drive past an overloaded bus, taxi or truck, then we read about another horrific accident caused by one. Hundreds of passengers ...
Read More »


Supporting Brokers In Optimising The Claims Experience Of Their Clients.

TANSA is a team of dedicated professional Attorneys, Forensic accountants, Disaster Claims Experts and Insurance Specialists focused on Insurance Claims & Dispute Resolution. Their mission is to support ...
Read More »


Redefining the role of the broker in a digital age

Technology, data, cultural and behavioural change of the consumer is transforming the role of the broker – and the importance of advice – in South Africa’s intermediary insurance market. Soul ...
Read More »


Premium collections now available through Brolink

Brolink has entered the premium collection market. Says the company’s CEO, Howard John, “After a very successful pilot programme, and working through a number of legislative issues that ...
Read More »


More News »


Healthcare »


Investment »


Life »


Retirement »


From The Glossary »



Physical contact of a motor vehicle with another object (including another vehicle) resulting in damage.
More Definitions »






Contact IG


Media Pack


RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2021. All Rights Reserved.