scholarly journals A Digitally Enabled Strategic Sourcing Process to Mitigate Risk

10.28945/3912 ◽  
2017 ◽  
Vol 2 ◽  
pp. 001-022
Keyword(s):  
South Africa ◽  
Financial Services ◽  
Motor Vehicle ◽  
Service Providers ◽  
Cost Benefit Analysis ◽  
Mobile App ◽  
Main Function ◽  
Insurance Company ◽  
Short Term ◽  
Insurance Cover

ABC Insurance was a leading short-term insurer in South Africa. The FSB (Financial Services Board) of South Africa defined short term insurance cover as indemnification secured by the insurance purchaser over their fixed and movable assets (FSB, n.d.). Such insurable assets could be one’s home (the actual building) or motor vehicle (https://www.fsb.co.za). The purchased insurance cover protected the policyholder (customer) against total loss or accidental damage, as a result of insurable events like fires or floods. In exchange, payment for insurance cover (referred to as the “premium”), was collected by the insurance company from its customers. Andrew Cohen, commodity manager for the Non-Automobile Property and Casualty procurement division at ABC Insurance, was faced with the choice of either digitizing the day to day claims fulfillment procedures within his portfolio, or to continue his business unit’s activities “as is.” The main function of Cohen’s business unit was to ensure that home owners (policyholders) who purchased insurance cover over their fixed assets (i.e., buildings insurance) could access and receive the required repair services as per the provisions set out in their insurance policies. In delivering these services to the policyholders, Cohen’s immediate challenges were that he had to increase efficiency within the claims environment, meet customer demand and enhance operational processes while concurrently accelerating daily business operations. In opposition to maintaining the status quo, his options were to either build an in-house solution, or purchase an existing tool and customize it to his organization’s requirements. His preliminary cost benefit analysis showed that choosing to remain “as is” would cost the firm nothing in terms of immediate cash outflows, but in the long term would expose management to the risk of not capitalizing on opportunities to service their customers quickly and efficiently, infuse transparency into the appointment procedure of suppliers on repair claims, and gain line of sight of interactions between the firm, its service providers, and its customers. He furthermore surmised that whatever the solution was it might require the firm to make initial investments of time for the re-organization of internal processes and new information technology competencies to acquire. To select an ideal solution, he would need to weigh the risks of remaining “as is” against the benefits of infusing mobile technology such as a mobile app into his portfolio, and ultimately, into the core day-to-day operations of the firm as well.

scholarly journals A Digitally Enabled Strategic Sourcing Process to Mitigate Risk

10.28945/3924 ◽  
2017 ◽  
Vol 6 ◽  
pp. 08
Author(s):  
Kim Cupido ◽  
Jean-Paul Van Belle
Keyword(s):  
South Africa ◽  
Motor Vehicle ◽  
Service Providers ◽  
Status Quo ◽  
Mobile App ◽  
Main Function ◽  
Insurance Company ◽  
Short Term ◽  
Insurance Cover ◽  
The Status

A South African insurance company is considering how to automate the process of handling home insurance repair claims in order to make the process more efficient and improve the customer experience. Should they stick with the status quo, develop their own system, purchase existing technology or employ a hybrid solution? ABC Insurance was a leading short-term insurer in South Africa. The FSB (Financial Services Board) of South Africa defined short term insurance cover as indemnification secured by the insurance purchaser over their fixed and movable assets (FSB, n.d.). Such insurable assets could be one’s home (the actual building) or motor vehicle (https://www.fsb.co.za). The purchased insurance cover protected the policyholder (customer) against total loss or accidental damage, as a result of insurable events like fires or floods. In exchange, payment for insurance cover (referred to as the “premium”), was collected by the insurance company from its customers. Andrew Cohen, commodity manager for the Non-Automobile Property and Casualty procurement division at ABC Insurance, was faced with the choice of either digitizing the day to day claims fulfillment procedures within his portfolio, or to continue his business unit’s activities “as is.” The main function of Cohen’s business unit was to ensure that home owners (policyholders) who purchased insurance cover over their fixed assets (i.e., buildings insurance) could access and receive the required repair services as per the provisions set out in their insurance policies. In delivering these services to the policyholders, Cohen’s immediate challenges were that he had to increase efficiency within the claims environment, meet customer demand and enhance operational processes while concurrently accelerating daily business operations. In opposition to maintaining the status quo, his options were to either build an in-house solution, or purchase an existing tool and customize it to his organization’s requirements. His preliminary cost benefit analysis showed that choosing to remain “as is” would cost the firm nothing in terms of immediate cash outflows, but in the long term would expose management to the risk of not capitalizing on opportunities to service their customers quickly and efficiently, infuse transparency into the appointment procedure of suppliers on repair claims, and gain line of sight of interactions between the firm, its service providers, and its customers. He furthermore surmised that whatever the solution was it might require the firm to make initial investments of time for the re-organization of internal processes and new information technology competencies to acquire. To select an ideal solution, he would need to weigh the risks of remaining “as is” against the benefits of infusing mobile technology such as a mobile app into his portfolio, and ultimately, into the core day-to-day operations of the firm as well.

Ordnungspolitische Weichenstellungen für die anstehende Reform der Riester-Rente

2020 ◽  
Vol 69 (3) ◽  
pp. 239-249
Author(s):  
Axel Kleinlein
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Service Providers ◽  
Insurance Industry ◽  
Financial Service ◽  
Mandatory Retirement ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurance Industry

Abstract The Riester pensions today face two main problems: First, life insurance industry in Germany faces the problem of inadequate solvency. Therefore, there is a need that we take the Riester pension not as a sole part of the life insurance sector and open it to the whole sector of financial services. Second, the previous regulation of the Riester pension is causing problems. Particularly the guarantee forces mandatory retirement with a life insurance company and the requirement of capital preservation. Therefore we have to review these two guarantee aspects. It is also important to limit costs and to simplify the funding system. The concept of the “Basisdepot-Vorsorge” solves these problems while it is based on promoting precisely those who want to save up for their retirement during their active career, no matter what kind of financial service is included in the accumulation or decumulation phase. To include all different financial service providers creates the needed economical competition to ensure better products for the Riester-Rente.

scholarly journals The underwriting process of motor vehicle insurance

2009 ◽  
Vol 6 (3) ◽  
pp. 239-246
Author(s):  
Adeeb Conrad ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Motor Vehicle ◽  
Specific Problem ◽  
Short Term ◽  
Insurance Policies ◽  
Starting Point ◽  
Financial Relationship ◽  
Motor Vehicle Insurance

The underwriting process is of prime importance to any insurer as it represents the starting point of the legal and financial relationship between an insurer and a particular proposer. This research focuses on the perceptions of the leading short-term insurers in South Africa concerning the underwriting process of motor vehicle insurance. The importance of the various underwriting factors is assessed in order to enable insurers to concentrate on a few most important ones. The specific problem areas of the underwriting process are thereafter highlighted, and possible solutions are discussed. In the last instance, the most frequently used stipulations to adjust insurance policies to take the underwriting factors into account and to alleviate underwriting problems receive due attention

scholarly journals An investigation of an overlap in penalty calculations: profit commission in reinsurance treaties versus profit commission in binder agreements for underwriting managers

2021 ◽  
Vol 20 (1) ◽  
pp. 1-16
Author(s):  
Cornelius G. Kilian
Keyword(s):  
South Africa ◽  
Risk Premium ◽  
Financial Services ◽  
Loss Ratio ◽  
Short Term ◽  
Financial Products ◽  
Term Insurance ◽  
Sliding Scale ◽  
Standard Template

Reinsurance treaties and binder agreements regulate penalty calculations in the event the insurer and underwriting manager is unprofitable and/or profitable. The formulae and different premium terminologies are investigated to calculate loss ratios and whether there is an overlap in sliding scale penalty calculations/formulae relevant to loss ratios of treaties and binder agreements. Treaties and binder agreements generally use sliding scale penalties to calculate reinsurance commission or sharing in the insurer’s profits by an underwriting manager and is in conflict with the Conventional Penalties Act 15 of 1962 of South Africa. The Conventional Penalties Act 15 of 1962 must guide reinsurers and insurers in their profit calculations formulae to prevent any form of sliding scale penalties relevant to loss ratios. It is therefore suggested that a standard template of profit calculations and terminologies should be used in binder agreements to prevent different calculations of loss ratios in the short term insurance landscape. This will guide the Financial Conduct Authority Services (previously the Financial Services Board) to understand loss ratios of affordable short term financial products when compared to loss ratios of other short term financial products in South Africa. Keywords: Reinsurance commission; loss ratio; risk premium; penalties; underwriting manager

scholarly journals The claims handling process of liability insurance in South Africa

2015 ◽  
Vol 5 (1) ◽  
pp. 133-140 ◽  
Author(s):  
Jacoline van Jaarsveld ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Service Providers ◽  
Secondary Data ◽  
Liability Insurance ◽  
Professional Service ◽  
Primary Data ◽  
Short Term ◽  
Personal Lives ◽  
Empirical Survey ◽  
Term Insurance

Liabilities play a very important financial role in business operations, professional service providers as well as in the personal lives of people. It is possible that a single claim may even lead to the bankruptcy of the defendant. The claims handling process of liability insurance by short-term insurers is therefore very important to these parties as it should be clear that liability claims may have enormous and far-reaching financial implications for them. The objective of this research paper embodies the improvement of financial decision-making by short-term insurers with regard to the claims handling process of liability insurance. Secondary data was initially studied which provided the basis to compile a questionnaire for the empirical survey. The leaders of liability insurance in the South African short-term insurance market that represented 69.5% of the annual gross written premiums received for liability insurance in South Africa were the respondents of the empirical study. The perceptions of these short-term insurers provided the primary data for the vital conclusions of this research. This paper pays special attention to the importance of the claims handling factors of liability insurance, how often the stipulations of liability insurance policies are adjusted by the short-term insurers to take the claims handling factors into consideration, as well as the problem areas which short-term insurers may experience during the claims handling process. Feasible solutions to address the problem areas are also discussed.

An Exploration of Aftercare Services for Female Drug Users

2018 ◽  
Vol 30 (2) ◽  
Author(s):  
Talent Mhangwa ◽  
Madhu Kasiram ◽  
Sibonsile Zibane
Keyword(s):  
South Africa ◽  
Qualitative Study ◽  
Drug Users ◽  
Service Providers ◽  
Service Users ◽  
Rehabilitation Centre ◽  
Aftercare Services ◽  
Data Source ◽  
Female Drug Users ◽  
Depth Interviews

The number of female drug users has been on the rise in South Africa, with statistics reflecting a rise in the number of women who attend treatment centres annually. This article presents empirical data from a broader qualitative study which aimed to explore perceptions concerning the effectiveness of aftercare programmes for female recovering drug users. The main data source was transcripts of in-depth interviews and focus groups with both service users and service providers from a designated rehabilitation centre in Gauteng, South Africa. Framed within a biopsychosocial-spiritual model, this article explores the perceptions and meanings which the female recovering drug users and the service providers attach to aftercare programmes. The findings of the research outlined the range of factors promoting recovery, alongside noteworthy suggestions for improvement in aftercare services. While acknowledging multiple influences on behaviour, this article highlights the significance of these findings in planning and implementing holistic aftercare programmes.

CHALLENGES TO BUILDING AUTHENTIC PARTNERSHIPS: LESSONS FROM BHAMBAYI, KWAZULU-NATAL, SOUTH AFRICA

2017 ◽  
Vol 26 (2) ◽  
pp. 124-140 ◽  
Author(s):  
Tanusha Raniga ◽  
Barbara Simpson ◽  
Ntokozo Mthembu
Keyword(s):  
South Africa ◽  
Social Services ◽  
Service Providers ◽  
Informal Settlement ◽  
Mutual Trust ◽  
Open Communication ◽  
Community Based ◽  
Individual Interviews ◽  
Kwazulu Natal ◽  
Qualitative Phase

In contemporary South Africa, partnerships between service providers in government, non-governmental organisations, the private sector and community based organisations have been identified as a means to strengthen communities and the sustainability of social services. However, the unequal power relations that exists between and within these organisations often leads to fragmentation, duplication, and lack of coordination of social services. Using Fowler’s (1998) conceptualisation of authentic partnerships, this qualitative phase of a larger study explored the challenges of building authentic partnerships in Bhambayi, a predominantly informal settlement in KwaZulu-Natal, South Africa. Individual interviews and a focus group held with nine service providers revealed that intraorganisational challenges, cross-boundary and inter-organisational relations as well as political influences were obstacles to the development of authentic partnerships. The article suggests that open communication, clarity of roles and mutual trust between service providers is vital.

Comprehensive Effects of Short-Term Rental Platforms Across Hotel Types in U.S. and International Destinations

2021 ◽  
pp. 193896552110335
Author(s):  
John W. O’Neill ◽  
Jihwan Yeon
Keyword(s):  
Service Providers ◽  
Comprehensive Analysis ◽  
Competitive Market ◽  
Substitution Effects ◽  
Short Term ◽  
Hotel Performance ◽  
The World ◽  
Different Types ◽  
Location Type ◽  
The Impact

In recent years, short-term rental platforms in the lodging sector, including Airbnb, VRBO, and HomeAway, have received extensive attention and emerged as potentially alternative suppliers of services traditionally provided by established commercial accommodation providers, that is, hotels. Short-term rentals have dramatically increased the available supply of rooms for visitors to multiple international destinations, potentially siphoning demand away from hotels to short-term rental businesses. In a competitive market, an increase in supply with constant demand would negatively influence incumbent service providers. In this article, we examine the substitution effects of short-term rental supply on hotel performance in different cities around the world. Specifically, we comprehensively investigate the substitution effects of short-term rental supply on hotel performance based on hotel class, location type, and region. Furthermore, we segment the short-term rental supply based on its types of accommodations, that is, shared rooms, private rooms, and entire homes, and both examine and quantify the differential effects of these types of short-term rentals on different types of hotels. This study offers a comprehensive analysis regarding the impact of multiple short-term rental platforms on hotel performance and offers both conceptual and practical insights regarding the nature and extent of the effects that were identified.

scholarly journals Factors Explaining Debt Firm Policy: A Comparison between Five Intercontinental Countries

2017 ◽  
Vol 7 (1) ◽  
pp. 285
Author(s):  
Ben Said Hatem
Keyword(s):  
South Africa ◽  
Capital Structure ◽  
Firm Growth ◽  
Debt Ratio ◽  
Firm Age ◽  
Growth Opportunities ◽  
Short Term ◽  
Return On Assets ◽  
Debt Policy

We test the factors explaining the debt policy of firms across five continents. To this end, we examine samples from South Africa, Australia, Brazil, India and Spain over a period of 8 years from 2003 to 2010. The results manipulate differences in debt policy for all countries (except for the variable Return on Assets, ROA). As for the effect of activity sectors on firm debt policy, higher performance led to lower firm debt ratios. Furthermore, we concluded some differences in other variables. Higher tangibility ratios for firms from South Africa, India and Spain led to higher capital structure ratios. Larger firms from Brazil led to lower short term debt ratio. We could not find evidence on the effect of firm growth opportunities in Brazil and India. Furthermore, we concluded to a positive and a statistically significant effect of liquidity ratio for Australia and India, and a positive and a statistically significant effect of firm age for firms from Spain.

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