scholarly journals Reinsurance by South African short-term insurers

2010 ◽  
Vol 7 (3) ◽  
pp. 210-218 ◽  
Author(s):  
M du Plessis ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
Decision Making ◽  
Developing Countries ◽  
South African ◽  
Emerging Economies ◽  
Insurance Industry ◽  
Short Term ◽  
Financial Decision Making ◽  
Retention Level ◽  
Term Insurance ◽  
Financial Decision

Short-term insurers utilize mutually loss sharing by obtaining cover for their risk portfolios by ceding a part thereof to a professional reinsurer, who pools the risks of various insurers. This study, which has the improvement of financial decision-making by short-term insurers pertaining reinsurance as its objective, focuses on the reasons why short-term insurers obtain reinsurance. The various methods/contracts of reinsurance, as well as the forms/bases of reinsurance which are employed by short-term insurers, represent main sections of this research. The factors which determine the retention level of a short-term insurer also receive the necessary attention. This study may serve as an illustration to other developing countries with emerging economies as the empirical study focuses on the market leaders of the General Segment of the South African short-term insurance industry.

scholarly journals The continuous market cycle of the short term insurance industry

2012 ◽  
Vol 2 (1) ◽  
pp. 22-29
Author(s):  
Liezel Essel ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Insurance Industry ◽  
Emerging Market ◽  
Literature Study ◽  
Short Term ◽  
Financial Decision Making ◽  
Empirical Survey ◽  
Term Insurance ◽  
Financial Decision ◽  
The Impact

The short-term insurance industry is a cyclical type of business due to the impact of the continuous market cycle. This cycle has a growth phase, soft market phase, hard market phase and a break-even phase. The objective of the research paper focuses on the improvement of financial decision-making when executives of the short-term insurance industry are managing their business during the various phases of the continuous market cycle. Both a literature study and an empirical survey were necessary to achieve the research objective. The empirical survey included the contributions of the top nine commercial and corporate short-term insurers in South Africa. They represented more than 77% of the total gross written premiums in 2009 and can thus be considered as the leaders of the short-term insurance industry in this country. The conclusions of the study should be valuable to other developing countries with emerging market economies as South Africa is also classified as such. The study focused on the various factors which may cause the continuous market cycle, the problem areas which the executives experience concerning the continuous market cycle, and how often various factors are adjusted by the short-term insurers to account for changes in the continuous market cycle.

scholarly journals The claims handling process of motor vehicle insurance

2009 ◽  
Vol 7 (1) ◽  
pp. 302-308
Author(s):  
M Steenkamp ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
Decision Making ◽  
Empirical Study ◽  
South African ◽  
Motor Vehicle ◽  
Short Term ◽  
Financial Decision Making ◽  
Number Of Factors ◽  
Financial Decision ◽  
Motor Vehicle Insurance

This paper focuses on the claims handling process of motor vehicle insurance where a number of factors are considered by insurers. Some of the claims handling factors may be more important than others when insurers are assessing the claims submitted by the policyholders. The responding insurers also identify important problem areas in the claims handling process, and solutions that alleviate the different problems should be welcomed by the insurers. The empirical study is based on the perceptions of the leading South African short-term insurers, who represent 82.6% of the total gross premiums written for motor vehicle insurance in 2006. The objective of this research embodies the improvement of financial decision-making by insurers when occupied in the claims handling process of motor vehicle insurance.

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

2011 ◽  
Vol 8 (4) ◽  
pp. 155-164
Author(s):  
D Naudé ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Emerging Market ◽  
Literature Study ◽  
Short Term ◽  
Property Insurance ◽  
Financial Decision Making ◽  
Empirical Survey ◽  
Term Insurance ◽  
Financial Decision ◽  
Main Factors

Property insurance is the second largest class of short-term insurance in South Africa. As South Africa is a developing country and has an emerging market economy, the conclusions of this paper, which are based on a literature study and an empirical survey, should accordingly also be valuable to short-term insurers in other countries with emerging market economies. The objective of this research paper endeavors to improve financial decision-making relating to the claims handling process of property insurance. It therefore focuses on the insurance of buildings, the contents of buildings, as well as all-risks insurance. After paying attention to the main factors, necessary to contemplate in the claims handling process of each of the three types of subject matter, the applicable problem areas and the effectiveness of the short-term insurers who participate in the empirical survey, are addressed.

scholarly journals The valuation of external projects by South African banks

2013 ◽  
Vol 10 (4) ◽  
pp. 461-468
Author(s):  
Adriaan Albert Tickner ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
Decision Making ◽  
South African ◽  
Economic Conditions ◽  
Literature Study ◽  
Financial Decision Making ◽  
Empirical Survey ◽  
Financial Pressure ◽  
Determining Factors ◽  
Valuation Process ◽  
Financial Decision

While banks are in competition to expand their market share, their credit portfolios may become less diversified without adequate reward for the increased risks. Even well-capitalised banks may come under financial pressure when global economic conditions turn. This research paper focuses on the valuation by banks of the clients’ projects to determine whether and to which extent the banks are going to provide financing for their clients’ projects. The objective of this research evolves around the improvement of financial decision-making by banks when they are valuating the projects of their clients. The objective of this research is achieved by means of a literature study as well as an empirical survey which focuses on the top banks in South Africa. The determining factors which are considered by banks when the projects of clients are valuated, the problem areas experienced by the banks during the valuation process and the adjustments requested by banks are amongst the aspects that are addressed.

scholarly journals Payday lending and the case of Proverbs 22:7: Wisdom for the borrower and warning to the lender

2019 ◽  
Vol 116 (1) ◽  
pp. 33-37
Author(s):  
Eric Howell
Keyword(s):  
Decision Making ◽  
Financial Crises ◽  
Personal Responsibility ◽  
Economic Justice ◽  
Payday Lending ◽  
Short Term ◽  
Financial Decision Making ◽  
The Poor ◽  
Financial Decision ◽  
Successful Business

The payday lending industry has become a wildly successful business model by taking advantage of the poor who turn to short-term, high-interest loans when faced with financial crises. Christian-oriented calls for personal responsibility and wiser financial decision-making appeal to Prov 22:7, “The borrower is the slave of the lender,” as warning to would-be borrowers. The proverb certainly signals caution to borrowers as it is commonly appropriated, but it also functions, in its context in Proverbs 22 and in concert with the whole of biblical economic justice, as a warning to would-be lenders not to take advantage of the vulnerable.

scholarly journals Reinsurance by short-term reinsurers in South Africa

2016 ◽  
Vol 6 (1) ◽  
pp. 35-42
Author(s):  
C L R Fernhout ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
South African ◽  
Emerging Market ◽  
Primary Study ◽  
Literature Study ◽  
Short Term ◽  
Financial Decision Making ◽  
Empirical Survey ◽  
Brics Countries ◽  
Financial Decision

The short-term reinsurance process usually involves three parties, namely the insurer, the reinsurer and the original policyholder, as the insurer cedes a part of the covered risk of the policyholder to the reinsurer. This research however addresses the perceptions of reinsurers regarding their reinsurance activities, where the reinsurer sells reinsurance to other insurance entities (viz. insurers and reinsurers), as well as buys reinsurance from other insurance entities. The crux of short-term reinsurance is therefore mutually loss sharing between the various insurance entities. The objective of this research focuses on the improvement of financial decision-making regarding the reinsurance operations of the reinsurers. To achieve this objective a literature study was undertaken to provide adequate background to compile a questionnaire for the empirical survey. The primary study embodies the perceptions of the South African short-term reinsurers regarding the following aspects: the various reasons why reinsurance occurs; the contracts / methods of reinsurance; the bases / forms of reinsurance; and the factors which determine the retention levels of a reinsurer. South Africa is classified as a developing economy, is a member of the BRICS countries and has an emerging market economy. The empirical results should therefore also be valuable to other countries which are classified similarly.

Zimbabwe’s vice president could be sidelined by party

2017 ◽  
Keyword(s):  
Decision Making ◽  
Foreign Investment ◽  
Vice President ◽  
Economic Uncertainty ◽  
Short Term ◽  
Content Type ◽  
Financial Decision Making ◽  
Finance Minister ◽  
Financial Decision ◽  
Robert Mugabe

Subject ZANU-PF infighting. Significance A cabinet reshuffle by President Robert Mugabe on October 9 removed key allies of Vice President Emmerson Mnangagwa and demoted him to vice president without portfolio. Among persistent wrangling between the rival ‘G40’ and ‘Lacoste’ factions ahead of the 2018 elections, the ZANU-PF politburo has agreed to hold a ‘Special Congress’ in December at which there will be elections for senior posts. If the extraordinary congress is held, Mnangagwa could be the biggest leadership casualty. Impacts Confirmation of an early poll would cause heightened economic uncertainty and deter foreign investment in the short term. More centralised and politically motivated financial decision-making is likely under the new finance minister. Minister of Defence Sydney Sekeramayi could emerge as a potential presidential successor for the ailing 93-year-old Mugabe.

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