Insurance Costs

[Barbarian Conan]

"Using this value they calculate what you should be insured for, if they deem your value at 500k and you insured for 250, they will only pay out 50% less excess of whatever you claiming for." - - - Wrong!

This is why anyone should only take advice from an approved FSP.

We had a claim where we were deemed to be under insured. This is what they did. "Underinsured by 20%", so they only pay out 80% of the replacement value of the items that were stolen.
How do you think it works?

 

[CranialBlaze]

We had a claim where we were deemed to be under insured. This is what they did. "Underinsured by 20%", so they only pay out 80% of the replacement value of the items that were stolen.
How do you think it works?

So 250 is not 50% of 500? You were underinsured by 20% so they only paid 80%.

Your argument against my statement is replicating my statement with different numbers?????

 

[AchmatK]

"Using this value they calculate what you should be insured for, if they deem your value at 500k and you insured for 250, they will only pay out 50% less excess of whatever you claiming for." - - - Wrong!

This is why anyone should only take advice from an approved FSP.

Directly from naked insurance.

 

[Sinbad]

"Using this value they calculate what you should be insured for, if they deem your value at 500k and you insured for 250, they will only pay out 50% less excess of whatever you claiming for." - - - Wrong!

This is why anyone should only take advice from an approved FSP.

Not wrong. If you are underinsured, they will only pay out a percentage of your claim.

 

[Barbarian Conan]

So 250 is not 50% of 500? You were underinsured by 20% so they only paid 80%.

Your argument against my statement is replicating my statement with different numbers?????

I'm agreeing with your statement...

 

[Pak Fa Fui]

Directly from naked insurance. View attachment 1255652

This is where they catch you out. If you are insured for R80k now and in the next 3 years you acquire a bunch of new tech products, especially Black Friday deals with an Apple Mac, Apple TV, Apple Watch and you are over that R80k easily. PS5 must also change that valuations easily.

 

[CranialBlaze]

I'm agreeing with your statement...

Oh sorry, mistook you for the other person, was walking around. My bad.

 

[CranialBlaze]

This is where they catch you out. If you are insured for R80k now and in the next 3 years you acquire a bunch of new tech products, especially Black Friday deals with an Apple Mac, Apple TV, Apple Watch and you are over that R80k easily. PS5 must also change that valuations easily.

It is your responsibility to ensure you are adequately insured.

It is advisable to do a “stock take” at least once a year as items move in and out of your house so the CPU adjustments may not cover it. Personally if I am over insured I leave it, under then I’ll up it.

 

[airborne]

R700k contents cover does not sound excessive, stuff is ridiculously expensive if you go by the current replacement value.

 

[Pak Fa Fui]

It is your responsibility to ensure you are adequately insured.

It is advisable to do a “stock take” at least once a year as items move in and out of your house so the CPU adjustments may not cover it. Personally if I am over insured I leave it, under then I’ll up it.

Yes but human nature is not to want to pay more and your brain only identifies the 3-4 new products worth R50k but not realising that these new products now affect the rest of your household contents.

 

[Speedster]

If you haven't yet, do yourself a favour and get a quote from Naked. It's a 2 min process and they halved my monthly premium (for more cover with lower excess).

Naked | Affordable Car, Home, Building & Single Item Insurance

Get an insurance quote for your car, home and contents, completely online anywhere in South Africa. Fast, affordable cover in only 90 seconds.

app.naked.insure

 

[airborne]

If you haven't yet, do yourself a favour and get a quote from Naked. It's a 2 min process and they halved my monthly premium (for more cover with lower excess).

Naked | Affordable Car, Home, Building & Single Item Insurance

Get an insurance quote for your car, home and contents, completely online anywhere in South Africa. Fast, affordable cover in only 90 seconds.

app.naked.insure

They are legit but how do they do that?

Insurance is a competitive business there's not sufficient margins to be able to undercut the competition by half and still offer the same cover, or is there?

 

[CranialBlaze]

They are legit but how do they do that?

Insurance is a competitive business there's not sufficient margins to be able to undercut the competition by half and still offer the same cover, or is there?

Technology plays a big part, a lot of the cost of insurance is in maintaining legacy systems, developers that speak code from 30 years ago cost a fortune.

Modern languages like GoLang for example a senior dev will run in the region of 100k a month or so, some banking and insurance systems are still running on cobal, a dev for that can easily run over half a mill as that’s a dead language, you’ll find a few dozen people in a country that can code in it and they all in their 40/50/60s.

They spun up quite recently and are able to take advantage of massive advancements like more optimal languages, AI and ML, scalable distributed cloud based infrastructures.

They also automate a lot so only the last step of a claim gets people involved, your claim includes a video recording for the incident details which is analyzed by an AI people program to look for signs of deceit, so if they flag it and a human comes in, otherwise they just step in to call to finalize the claim payout details.

Debit orders and processing fees also add a lot, baked uses credit cards which can be up to 95% cheaper than debit orders and process exponentially faster.

The development team is also part of the support teams so the staff compliment is pretty minimal too.

The CEO himself sits on the support desk if needed.

 

[airborne]

Technology plays a big part, a lot of the cost of insurance is in maintaining legacy systems, developers that speak code from 30 years ago cost a fortune.

They spun up quite recently and are able to take advantage of massive advancements like more optimal languages, AI and ML, scalable distributed cloud based infrastructures.

They also automate a lot so only the last step of a claim gets people involved, your claim includes a video recording for the incident details which is analyzed by an AI people program to look for signs of deceit, so if they flag it and a human comes in, otherwise they just step in to call to finalize the claim payout details.

Debit orders and processing fees also add a lot, baked uses credit cards which can be up to 95% cheaper than debit orders and process exponentially faster.

The development team is also part of the support teams so the staff compliment is pretty minimal too.

The CEO himself sits on the support desk if needed.

But 50% off for the same cover and still be profitable, it just seems to good to be true, there's no free lunch in life?

Who else has entered the market using similar tech and at the same pricing?

Something doesn't add up but if it's true then good stuff.

 

[Speedster]

But 50% off for the same cover and still be profitable, it just seems to good to be true, there's no free lunch in life?

Who else has entered the market using similar tech and at the same pricing?

Something doesn't add up but if it's true then good stuff.

Pineapple operate similarly. Get the quote and see if they offer you a better premium, then you can do homework to decide if you want to accept. There's a thread about them somewhere

 

[CranialBlaze]

But 50% off for the same cover and still be profitable, it just seems to good to be true, there's no free lunch in life?

Who else has entered the market using similar tech and at the same pricing?

Something doesn't add up but if it's true then good stuff.

Locally, nobody. They were first to market.

Having 90% less overheads makes it quite easy to be 50% cheaper and remain profitable.

Personally I’ve claimed and it was hassle free. The AI software I meant opened I know about as I was on a development team at another company attempting something like that but owning to the product director being an egotistical moron the project eventually cot canned with nothing to show for it after going 20mil over a 30mil budget.

Root created a framework to do something similar but so far no big players have picked it up, only smaller brokers.

Starting an insurance company is not actually easy, lots of legal hoops so this would have been in planning for probably 3 to 5 years before any of us heard of it.

They also started small only offering cars, then added motorbikes and eventually content and building, then single adhoc items.

Having worked in insurance development it’s actually much easier for me to grasp how they can be soo much cheaper as I’ve been on the inside and seen the idiot costs around archaic systems and unnecessary corporate process and BS.

 

[CranialBlaze]

Pineapple operate similarly. Get the quote and see if they offer you a better premium, then you can do homework to decide if you want to accept. There's a thread about them somewhere

They used to just do individual items and quite expensive too.

I tested them and my Garmin watch had a hire premium than my home content.

I see now they do cars but neither their site nor app work. Filled in all the details and no quite just a silly spinning pineapple and the app just does not load at all.

Not something that instills trust.

 

[Speedster]

They used to just do individual items and quite expensive too.

I tested them and my Garmin watch had a hire premium than my home content.

I see now they do cars but neither their site nor app work. Filled in all the details and no quite just a silly spinning pineapple and the app just does not load at all.

Not something that instills trust.

I meant to get the quote from Naked. Sorry for the ambiguity. I have no experience of Pineapple, only heard that they use a similar model to naked.

Naked | Affordable Car, Home, Building & Single Item Insurance

Get an insurance quote for your car, home and contents, completely online anywhere in South Africa. Fast, affordable cover in only 90 seconds.

app.naked.insure

 

[Dolby]

I dropped it - and just got this :

It is imperative to ensure your household contents and buildings for their full replacement value. If at the time of a loss the insurer finds that your insured amount is insufficient to replace all your possessions, they will apply average, and you will be responsible for a portion of the loss.

Example of how average is calculated: The insured value on your household contents is R200 000. You suffer a loss, and the insurer finds that your insured amount must be R400 000. This means you are under insured by half (50%). If the cost of the claim is R50 000 the insurer will only pay 50% of the loss, so only R25 000 will be paid out

If at the time of loss or damage, the amount needed to replace all your property with similar new property is more than the insured amount, Santam will not pay you the full amount of the loss and you will be responsible for The difference between the amount insured and the replacement value. You will be responsible for a proportional portion of the loss or damage.

 

[Pak Fa Fui]

In other words, hide your new expensive stuff if you need to claim.