Themba Baloyi, executive director for Discovery Insure noted that the technology of today allowed insurance companies to interact consistently with customers helping reduce temptation of inflated claims.
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“The level of fraud has been reduced by the level of interaction with customers. We have seen the change of behaviour due to those interactions,” Baloyi told CNBC Africa.
He further postulated that it was impossible for companies to police people indefinitely that’s why his company was incentivising customers for good behaviour.
Dawie Buys, insurance risk manager at South Africa Insurance Association (SAIA) noted that the sector was doing well though natural growth was not as good as it should have been because of the nature of the economy.
He further urged the broader public to take up short term insurance saying it was critical to the economy and also essential for consumers to protect their property and contents.
Buys noted that the sector was also dealing with systemic risks such as hail that has negatively affected the industry over the past few years.
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“Although hail has impacted on the profitability of our businesses we are still confident that we have done better,” he noted.
Buys supporting Baloyi’s assertions posited that there were various types of fraud the industry was encountering with the most common one being inflating of claims by the insured.
John October, spokesperson for Dial Direct Insurance noted that the insurance sector was a very competitive industry hence much focus was needed to be placed on improved customer service.
“For us it is important to keep asking what value-add we can give the insured in terms of the policies we offer.”
“We have put ourselves out there and cut out the middlemen as to reduce the costs. We have also been working on improving our claim processes,” added October.