SA brokers: Crime not under control

Published Sep 13, 2011

Share

A recent survey conducted by CIB Insurance Administrators (CIB) among insurance brokers has revealed that they have confidence levels of only 31% that crime in South Africa is under control.

According to Jonjon Smit, Sales Director at CIB, the low confidence levels are most likely due to an increase in the number of crime-related claims that brokers and clients have submitted during 2011.

“This trend is consistent with the increased commercial crime levels recorded by the South African Police Services during the 2010/2011 period.

“These statistics have shown that commercial crime is one of the few types of criminal activity that is continuing to rise in South Africa. The report revealed commercial crime increased by 53% over the past five years, highlighting the risk small business owners are taking by failing to have adequate insurance cover in place.”

Smit says that the low confidence levels indicate that South African brokers are starting to realise that their clients are encountering higher levels of crime than in the past. “The broker's low confidence levels highlight the need for consumers and business owners to take all of the risks that they are exposed to into consideration and ensure that they have the required security and insurance measures in place.”

He says that while crime is an ever-present threat to both businesses and individuals, it is essential that effective risk audits are regularly conducted to ensure that the correct type of insurance cover is in place. “Policy holders and those who do not yet have adequate cover should contact a reputable broker to conduct a risk assessment in order to establish whether there are any additional factors that need to be taken into account.”

Smit says that an integral part of reducing risk is to be proactive. “Take the time to identify any gaps or weak points that might exist in personal and business security systems, as well as processes. For example, business owners and consumers should ensure that alarm systems and surveillance cameras are fully operational and regularly tested. Changes in day-to-day routines can potentially help to minimise the risks of falling victim to crime.” - I-Net Bridge

Related Topics: