Aon South Africa, Commercial Products Solutions SABOA Conference March 2015 Prepared by Aon Risk Solutions
About Aon Aon Risk Solutions 2
Aon Beauty in Numbers #1 Rated risk services broker, reinsurance intermediary, and human resource consulting and outsourcing provider 66,000 Number of Aon colleagues around the world (1,500 in S.A.) 500 Number of global offices (17 Offices in S.A.) 120 Number of countries $11,8B Total revenue generated by Aon in 2013 There is a 1 in 2 chance that your mobile phone was produced by an Aon client Aon clients are responsible for designing and manufacturing 70% of the world s 20 best-selling pharmaceutical products Aon placed film insurance for five of the Oscar winners at the annual Academy Awards. In total Aon placed insurance for 16 of the 26 Academy Award-nominated films Aon has the largest share of the worldwide space insurance market One in every 2 bananas in the world is shipped by a company insured through Aon Seven of the world s top 10 airlines are Aon clients Aon Risk Solutions 3
Awards & Recognition South Africa Aon received the Best Global Insurance Broker in Africa award for 2013 from Global Finance Magazine. Aon Western Cape, South Africa received the 2013 Lion Award at the AIG BIG 7 awards on 28 November 2013. Aon Western Cape South Africa received the Top Broker Award 2013 in the National Broker Category on 30 September 2013 at the Mutual & Federal s Broker Conference/Awards function. Aon Bloemfontein South Africa received the Gold Broker Award from Mutual and Federal for the Top Broker 2013 Central Region on 12 September 2013. Aon Pretoria South Africa received the Mutual & Federal Top Broker Award 2013 in the Northern Region, National Broker Category (Bronze Broker Award). Aon Risk Solutions 4
Aon South Africa Aon Risk Solutions 5
Aon South Africa Client Profile Large multi-national groups Large national groups Medium large organisations State owned enterprises Small organisations Individuals Aon Risk Solutions 6
Major Clients Transaction Capital AfriSam Ford Motor Company Amalgamated Beverage Industries Pepsico Alert Steel Holdings Limited Anglo American Aveng Group Commerzbank Tongaat Hulett Limited Astrapak Limited Afgri ArcelorMittal AFGRI Limited Avroy Shlain Cosmetics Travelex Clientele Life Foschini Kiwi Kumba Iron Ore Danone Clover Datatec Limited Heineken Dorbyl Lafarge Microsoft Tsogo Sun Group Goldman Sachs Bosal Transnet Pfizer P & O Nedlloyd Canon Waco Siemens Standard Chartered Huhtamaki FFS Refineries South Ocean Holdings Limited Lear Corporation Bridgestone South Africa Steinhoff TCTA Argent Industrial Limited Golden Era Group Netcare York Timbers SAP Kraft Delta EMD Mercedes Benz Coca-Cola Fidelity Goldman Sachs Sasol Limited 2010 FIFA World Cup ICASA Aon Risk Solutions 7 AVI Independent Newspapers Southey Holdings EDS Edcon Philips Old Mutual McDonalds Bidvest JD Group Joy Mining Kimberly-Clark Transpaco Growthpoint Barloworld Greif Barclays Telkom Maersk Sentula Mining Limited Reckitt Benckiser LG Electronics Eqstra Holdings Limited Blue Financial Services Limited Life Healthcare P & H Minepro Investec Bank Unisys Gold Reef Mondi Pentair RCI Hulamin Limited Restonic BMW RBS SABMiller Komatsu Southern Africa WBHO Rare Energy UTi CMT International Trading
State of the Insurance Market South Africa It is our policy to place your business only with reputable and creditworthy Insurers. We do not accept responsibility for, or guarantee, the future solvency of Insurers or their ability to pay claims. Load Shedding With the re-introduction of load shedding by Eskom, a number of claims have occurred due to surges to electronic equipment The impact of load shedding has caused vehicle accidents, and thefts in office parks as alarms linked to armed response, electronic gates, electric locks and garage doors were not operational, Fires have also resulted as a consequence of the load shedding Consumers and businesses are looking for alternatives to address the issue of electricity supply. Insurers have called for consumers to install surge protection as load shedding causes surges which causes gate motors, garage doors and electronic equipment to be damaged. Weather / Climate SA continued to experience severe storms in 2014 56% more claims were reported in March 2014 than in March 2013 Insurers are considering increased excesses for weather related claims Natural Disasters SA experienced an earthquake in Orkney in August 2014, measuring 5.5 on the Richter scale. It is the largest earthquake experienced in SA since the Tulbagh earthquake in 1969. Aftershocks continued for a few days thereafter. Aon Risk Solutions 8
State of the Insurance Market New Legislation Treating Customers Fairly (TCF) was introduced in 2014, and is aimed at ensuring that customers are treated fairly. TCF deals with the entire customer experience and, as it is the overarching legislation which governs Financial Services Providers it is closely aligned with principles already embedded in the Financial and Intermediary Services Act. Some parts of the Protection of Personal Information (POPI) Act became effective from 11 April 2014 Liability Cyber Liability The cyber attacks in 2014 a film producing company, and hospitals, raised alarm bells in the sector It is predicted that cyber attacks will increase in frequency in 2015 Hackers are using more advanced techniques to infiltrate networks It is predicted that hackers may force victims to pay ransoms to get their data back after their systems are locked down The Retail sector may also see an increase in attempts to hack their systems Aon Risk Solutions 9
State of the Insurance Market General Liability The sector continued to see an increase in claims Disclaimer notices - these have become less effective over the past few years. This is due to the fact that the majority of disclaimer agreements have the effect of restricting a consumer s right to seek judicial recourse or are inconsistent with the provisions of the Consumer Protection Act. A carefully worded disclaimer may still serve as a buffer against liability claims SASRIA / Political Unrest Strike action continued in the mining sector in 2014 which saw some mines not operating for 6 months SASRIA Claims information:- Claims frequency decreased in 2014 to 18.3, compared to 52.6% in 2013 Service delivery protests are becoming more violent and moving away from townships to metropolitan areas Aon Risk Solutions 10
State of the Insurance Market Motor Cost of repairs to vehicles continue to increase. Insurers are looking to price comparison websites (PCW) to check on parts being used in repairs to try and manage the cost of vehicle repairs Hail, 5cm in size, was experienced in Gauteng in March 2014, causing unprecedented vehicle write offs Aon Risk Solutions 11
Aon Exclusive Passenger Transport Scheme Aon Risk Solutions 12
Unique Benefits (Highlights of the New Enhanced benefits introduces in Oct 2014) Personal Accident Driver, Spouse and Immediate Family Driver: Death R100,000/Spouse and Immediate family R10,000 Driver: Permanent Disability R100,000 (Driver) Temporary Total Disability: 100% of weekly earnings up to 52 weeks (Driver) (One week deductible) Bereavement (Additional Death Benefit): R6,000 (All) HIV Assist including ARV s Actual Costs Limit R100,000 Hire of Temporary Driver Up to max salary of R4,000 per week Passengers Death: R35,000 (Children limited to Max amount payable in terms of legislation). Permanent Dis.: R35,000 (Percentage as specified) Temp. Total Dis.: 75% of weekly earnings up to 52 weeks (2 week deductible) Medical Expenses: R50,000 (R500 excess). Basis of cover: 24 hours, 7 days a week * Should payment in event of death of a passenger not be made within 48 hours Insurers will pay an additional 10%. Aon Risk Solutions 13
Unique Benefits Crisis Accident and Disaster Management Plan Medical Emergency Evacuation Services, following an accident to a bus. Evacuation using rapid response vehicles, ambulances and helicopters all equipped with advanced Life Support equipment. Limit R250,000 per event Guaranteed Hospital admission up to R10,000 for passengers. Legal Assistance helpline Bereavement Lines Disaster management Emergency Call centre will co ordinate and manage the logistics of the disaster. Roadside Assistant: Flat tyres R1,250; Battery start/replace R1,250; Keys locked in vehicle R1,250, per incident. Aon Risk Solutions 14
Unique Benefits RoadCover Assistance (R.A.F) With Isithuthi RoadCover benefit, your claim with the RAF is managed on your behalf from start to finish, at no cost to you. The benefit provides for a dedicated legal practitioner to formulate your RAF claim, manage the entire claim process from start to finish and effectively halve the turnaround time. You receive 100% of the RAF pay out under RoadCover, as there are no charges or additional fees. Aon Risk Solutions 15
Unique Benefits Additional Extensions Applicable to Motor Fleet Mechanical breakdown Towing - Limit: R20,000 Wreckage Removal - Limit: R35,000 Fire Extinguishing Charges - Limit: R30,000 Loss of Keys - Limit: R20,000 Emergency Repairs - Limit: R15,000 Cross Border Accident Towing - Limit: R50,000 Car Hire - Limit: R200 per day/30 days Private cars automatic Aon Risk Solutions 16
Fact Sheet Aon has been the Preferred Supplier of Insurance to SABOA and its members for more than 16 years The existing underwriter (SHA) on behalf of Santam has underwritten the scheme since 2002. 50% of SABOA members are insured with Aon 1 in every 5 buses in the formal bus Public Transport are insured with Aon Since 2002 almost R250 million has been paid out in claims We insure your vehicle for Retail or Agreed value (subjected to Independent Valuators report) In the past 5 years there has only been one general premium increase. Access to a 24/7/365 Claims call centre You can also track your claims in real time on a web-based system. Repairs are authorised within 24/48 hours (Provided all documentation is received) Highest minimum level of passenger/third party liability limit is R100 million/r50 million respectively Aon Risk Solutions 17
Final Advice Obtaining a New Quote:- Make sure you are dealing with a Professional Broker who is FAIS Accredited and Licensed to give advice and guidance Ensure that your broker does a thorough Needs Analysis to ensure that cover is tailored to your specific requirements. Conclusion Our commitment as Aon to its clients is to make sure you always have the right cover for your specific needs, at the right price, backed with years of expertise and a deep understanding of your industry. Aon Risk Solutions 18
THANK YOU Aon Risk Solutions 19
Contact Aon South Africa (Pty) Ltd The Place, 1 Sandton Drive, Sandhurst, 2196 P O Box 1874, Parklands, 2121 Tel: +27 11 944 7000 Fax: +27 11 944 8010 www.aon.co.za Aon South Africa (Pty) Ltd is an Authorised Financial Services Provider. FSP #20555. Aon Risk Solutions 20