The latest Ombudsman for Short-Term Insurance (OSTI) report shows that short-term insurers are responding to claims fairly, due to the declining number of complaints resolved against them.
The OSTI is an independent body to which clients can complain if they believe they have been treated unfairly by a short-term insurer.
The report looks at how many complaints were received by the OSTI per 1,000 claims handled by an insurer.
It compares this to the OSTI overturn rate, which refers to the percentage of complaints where the OSTI finalised the complaint with some benefit to the complainant.
OUTsurance came out on top, with only 2.4 claims per 10,000 processed overturned by the OSTI. This was the best performance among the major insurance companies when considering the overturn rate, where only 13.8% of complaints finalised were overturned.
According to the report, OUTsurance had two complaints sent to the OSTI out of every 1,000 claims received by the insurer.
“Paying claims is at the core of our business – it is the single most important thing that it does,” said OUTsurance.
“Our approach to paying claims goes beyond mere contractual insurance obligations. We look to ensure that equity and fairness prevail at all times, regardless of what the insurance contract provisions dictate.”
The table below looks at how South Africa’s insurance companies fared in the report.
The statistics and explanatory notes are available on pages 14-17 of the 2014 OSTI report.
This article was published in partnership with OUTsurance.