Old Mutual Insure

Centuries of excellence

Nearly 200 years of experience is a feat difficult to rival in any industry, let alone a relatively fast changing insurance sector which calls for the most forward-thinking, innovative and trend adhering strategies in order to succeed.

With age comes experience though, and no company is in a better position than Old Mutual Insure to prepare for every eventuality and client requirement.

“The forerunner of Old Mutual Insure, the South African Fire and Life Assurance Company, first opened its doors on 14 March, 1831,” John Nienaber, Executive for Specialty explains. “After trading profitably for 64 years, South African Fire and Life was then acquired by London & Lancashire which, in turn, was absorbed by the Royal Group in 1962.

“In the 1960s, South Africa became a republic and the Government directed that all branches of foreign insurance companies operating locally should be registered as South African companies and trade on the Johannesburg Stock Exchange. This conversion became known as the ‘domestication of foreign companies’.”

As a result, the majority of the Royal’s businesses in South Africa merged with Old Mutual’s short-term company, the SA Mutual Fire & General Insurance Company, in 1970. Then, to assume a truly South African identity, ‘Mutual’ and ‘Federal’ elements were united to create the Mutual & Federal brand.  This was the state of affairs until 5 June 2017 when Mutual & Federal rebranded to Old Mutual Insure.” Nienaber says.

Specialty

Old Mutual Insure caters for mid-sized and large multinational organisations via the Specialty arm and offers asset protection, fire cover, accident and motor fleet insurance, and much more.

Read below for some examples of the work Specialty does on the African continent:

Growing intra-Africa marine trade highlights need for specialist insurance:

The marine cargo industry in Africa is set to enter a boom period over the next few decades.  South Africa’s ports showed steady growth of marine cargo over the past year. The marine cargo industry therefore offers great opportunities to countries and importing and exporting companies, but the risks must be understood and planned for in advance with proper marine insurance.

This is according to John Nienaber, Executive for Specialty at Old Mutual Insure, who says: “Statistics from the Transnet National Ports Authority in South Africa show that over 19 million tonnes of cargo was handled in South Africa’s eight commercial ports during August last year. This figure is just over 2 million tonnes more than for the same month in the previous year.

“In addition to this, the International Transport Forum (ITF) Transport Outlook estimated that intra-African trade would grow by 715% over the next 35 years to 2050. The ITF also expects international freight transport volumes to grow by 200% over the same period. The importance of insuring this sector is therefore indisputable.”

Nienaber adds that, according to the International Chamber of Shipping, the international shipping industry already carries over 90% of world trade. “With South African importers and exporters handling millions of tonnes of cargo via sea every month, amounting to a value of billions of Rands, it is crucial that these businesses fully understand the major risk factors involved in the transport of marine cargo to ensure they are adequately covered in the event of theft, loss or damage to cargo.”

Nienaber says marine insurance is a highly specialised area requiring a high level of skill and competence, with challenges such as poor weather, changes in climatic conditions, poor infrastructure, delays at border posts, legislation that differs from one country to another, crime, corruption, and incidents at sea including machinery breakdown, collision, sinking and piracy.

“It is therefore important for those in the import/export industry to have sound insurance cover in place, due to the many risks of transporting goods overseas. Companies also need to be fully aware of all the clauses in their insurance policies, and should take all feasible precautions to protect their goods. They should for example exercise proper control during the packing of cargo; making sure there is adequate supervision during the loading, storage and unloading phases; and plan the route of the voyage with the services of a reputable carrier who understands the requirements and protocols of international trade.”

Nienaber says that Old Mutual Insure provides peace of mind to importers and exporters, with far-reaching implications. “Cargo ships are obviously very vulnerable to severe weather, with regards to physical damage caused by storms and damage because of delays even when the ship safely navigates bad weather. Using the services of a specialist marine insurer is therefore the best way to mitigate the chances of any financial, reputational or legal consequences with the transporting of marine cargo. By enabling global trade to grow unhindered, proper marine cargo insurance helps to bring prosperity and economic activities to all corners of the globe,” he concludes.

In addition to the extensive marine insurance cover offered by Old Mutual Insure, the company also offers the following products in its Specialty insurance segment.

Specialty Insurance products:

Old Mutual Insure has a range of products specifically designed to accommodate the insurance requirements of large businesses. Our Corporate Business Insurance solutions are designed to provide clients with specialised cover for complex, large and non-standard risks. We also provide innovative and proactive risk management services at no charge.

Our in-house risk managers, engineers and surveyors, are well suited to offer brokers and clients with technical information and support. With our specialist claims support and our long standing heritage in short-term insurance, our customers are assured of our expertise in adequately protecting the assets of large businesses.

Engineering insurance

Our Engineering department comprises a specialised team of experts who provide the information necessary to allow our clients to make informed decisions regarding the adequacy and type of cover that customers require

Marine insurance

Marine business comprises a vast segment and it is important for us to provide cover for every risk situation. Our range of marine cover options includes:

Commercial Hull Insurance, providing cover for vessels used for commercial purposes such as those used in deep sea fishing industry or for charter.

Pleasure Craft Insurance, provides cover for various types of small craft for private use. This policy covers options which include medical expenses arising for an accident, damage from the impact of hitting a submerged object and insurance for trailers.

Cargo Insurance, providing cover for goods transported by sea, rail and air freight.

Covering renewable energy projects

Old Mutual Insure has been at the forefront in providing Engineering insurance locally for renewable energy projects. The projects to date are split between Solar Energy and Wind power generation plants .Old Mutual Insure has developed a product, using a ‘cradle to grave’ design approach.

UMA Partnerships

Old Mutual Insure has partnered with carefully selected UMAs whose specialist skills and product ranges cater for the specialist needs of clients and complement Old Mutual Insure’s existing offering to its customers. Old Mutual Insure has partnered with Merx Commercial Underwriters, a specialist UMA for all types of Heavy Commercial Vehicles and Camargue Underwriting Managers, an underwriter of niche liability insurance products and a provider of risk management solutions to a broad spectrum of industries in southern Africa.

Old Mutual Insure risk financing

Risk financing through the offering of a cell captive facility is also able to provide large retail businesses with income and value enhancing opportunities to their existing extensive retail customers to on-sell insurance products that are relevant to their core business.