Best and worst insurance companies in South Africa

The Ombudsman for Short-Term Insurance (OSTI) has released its report for the 2014 calendar year, revealing South Africa’s best and worst short-term insurers.

The OSTI is an independent body to which clients can complain if they believe they have been treated unfairly by their insurer.

The OSTI included statistics on the number of complaints it received per 1,000 claims handled by an insurer, as well the overturn rate by the Ombudsman.

The overturn rate shows how many claim decisions by the company were overturned by the Ombudsman.

“If a high overturn rate is registered, this may, but not necessarily, indicate that the insurer is not treating its customers as fairly as it should.”

“However the overturn rate should be treated with considerable caution as a high overturn rate can also be indicative of a high degree of co-operation being received by the ombudsman’s office from a particular insurer in resolving a complaint to the satisfaction of the customer,” the OSTI said.

The industry average overturn rate is 31%

Overall, the Ombudsman said it received 10,253 complaints in 2014, up 9.5% from 9,368 complaints in 2013, and from 9,144 complaints received five years ago.

The rand value of complaints resolved in favour of the insured was down to R116 million, from R119 million 2014, and R136 million in 2009.

Majority of complaints related to motor insurance at 46.9% (4,807 complaints), followed by houseowners’ insurance at 20.9% (2,148 complaints).  The “miscellaneous” category accounted for 17.4% of complaints.

The tables below show complaints per 1000 and the overturn rates of the 20 insurers which drew the most complaints during the review period.

Top insurers by ombudsman complaints per 1000

Insurer Total claims Complaints received by Ombudsman Ombudsman complaints per 1000
NMS Insurance 74 021 0 0/1000
Vodacom 65 073 49 1/1000
Renasa Insurance 41 656 53 1/1000
Santam 425 617 680 2/1000
Hollard Insurance 331 825 632 2/1000
Outsurance Insurance 290 010 493 2/1000
Centriq Insurance 82 918 153 2/1000
Guardrisk Insurance 159 333 497 3/1000
Discovery Insure 53 015 170 3/1000
Alexander Forbes Insurance 52 519 179 3/1000
Absa Insurance 275 588 1 037 4/1000
Mutual & Federal Insurance 155 598 599 4/1000
Standard Insurance 119 506 523 4/1000
Auto & General Insurance 109 490 408 4/1000
First for Woman Insurance 47 700 173 4/1000
Dial Direct Insurance 57 991 265 5/1000
Nedinsurance 57 337 294 5/1000
Budget Insurance 65 559 362 6/1000
Miway Insurance 84 186 569 7/1000
New National Assurance 38 249 521 14/1000

Top insurers by overturn rate

Insurer Total claims Complaints received by Ombudsman Overturn rate
Outsurance Insurance 290 010 493 13.8%
Miway Insurance 84 186 569 22.6%
Discovery Insure 53 015 170 22.8%
Standard Insurance 119 506 523 23.9%
Mutual & Federal Insurance 155 598 599 26.6%
Alexander Forbes Insurance 52 519 179 26.8%
Santam 425 617 680 29.3%
Hollard Insurance 331 825 632 30.8%
Nedinsurance 57 337 294 32.1%
Renasa Insurance 41 656 53 32.8%
Budget Insurance 65 559 362 33.2%
Auto & General Insurance 109 490 408 33.3%
Vodacom 65 073 49 35.7%
Dial Direct Insurance 57 991 265 37.2%
Centriq Insurance 82 918 153 37.4%
Absa Insurance 275 588 1 037 38.9%
First for Woman Insurance 47 700 173 39.4%
Guardrisk Insurance 159 333 497 39.4%
New National Assurance 38 249 521 47.0%
NMS Insurance 74 021 0 n/a

More on insurers

SA insurance premiums reach R110 billion

Best and worst life insurers in SA

Is the OUTsurance Life OUTbonus worth it?

Latest news

Partner Content

Show comments

Recommended