The retirement savings industry has received a shot across the bow from financial services provider Outsurance with its new OUTvest offering encompassing all the features of a retirement annuity but with rock-bottom fees.
OUTsurance has again proven itself to be the short-term insurer that delivers the best for its clients, evident in the annual report figures of the Ombudsman for Short-Term Insurance (OSTI) for the 2014 calendar year.
The OSTI is an independent body to which clients can complain if they believe an insurer has treated them unfairly. The ombudsman serves both insurers and consumers in an impartial manner when resolving issues between them.
Released at the end of May, the report is an overview of the year and provides statistics on the number of complaints received by the OSTI per 1 000 claims handled by an insurer (known as the referral rate), and the percentage of complaints where the OSTI finalised the complaint with some benefit to the complainant (known as the overturn rate).
This is the second year the OSTI has publically disclosed these statistics, and each year OUTsurance has come out tops, showing the lowest referral and overturn rates of all short-term insurers in South Africa.
OUTsurance chief executive Ernst Gouws says that a low referral rate shows how well an insurer processes claims and how effectively the outcome is explained to the client.
Similarly, the rate at which the OSTI overturns claims is a good indicator of whether an insurer is making the right decisions with regard to claims, and whether their processes are sound.
“Paying claims is at the core of the OUTsurance business — we see it as the single most important thing we do. As a short-term insurer we strive to achieve equity and fairness at all times. If there is ambiguity in a claim, we give it great consideration, and in many cases we find ourselves looking beyond our contractual obligations to ensure the claim is paid, simply because it’s the right thing to do,” says Gouws.
The figures in the OSTI’s report reflect this, showing that only 2.4 claims in every 10 000 received by OUTsurance were overturned by the ombudsman, as opposed to the 11.1 industry standard.
“We’re very pleased with our performance. The OSTI report reassures us that we’re paying attention to our clients and making the right decisions where claims are concerned. It’s not always easy – sometimes claims are fraudulent — other times people try to claim for things that are not covered by their policies, such as maintenance-related damage to their houses.
“The one thing we really try to inculcate in our staff is a culture of doing the right thing — to consider equity, fairness and, importantly, intention of the client. The results in the OSTI report reflect this and the figures are a testament to our philosophy and our processes.”
Gouws says one of the challenges faced by short-term insurers is pricing accurately for risk, which means charging the right premiums for clients.
“Once you have the right clients at the right price, you need to provide them with exceptional service, whether they’re simply phoning in to change their details or putting in a claim.”
Gouws believes success in short-term insurance is about offering value for money rather than simply the cheapest cover.
“As the numbers in the OSTI report show, choosing the right insurer is critical. There are significant differences between insurers with regard to how clients are handled come claiming time. Our philosophy at OUTsurance is to provide great value-for-money insurance products, backed by excellent service and claim settlements that are well considered and fair.”
The full OSTI table is available here
More information is available from the OUTsurance site
This article has been paid for and approved by OUTsurance