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 |
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