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
They don t even bat an eyelid if you take in a decoder that is faulty. Even if you don t have insurance with multichoice if you take in a faulty obsolete decoder they imediatley replace with an upgrade. Everyone hear gives multichoice stick about the programmes or movies or whatever they feature as well as the cost of it all, but never a complaint of bad service or non delivery of service. They certainly do know how too look after customers probably the best in Africa. And no I m not supporting them just an observation.
I think it s just in their best interest to make sure we have working decoders, so they can collect the subscription fees.
Multichoice apparently replaced all old decoders for R50.00 or R100.
They didn t tell us about it, nor did they advertise it to their customers. We had to buy a new dstv hd decoder in December for like R600 to be able to watch DSTV again because they didn t want to reactivate our old smart card for the old decoder.
Great company hey?
But you any of you complain?
Interesting read, but for me, this does not show an accurate picture at all, they should have also added how may customers they each have, obviously a company with 10 million clients, will get more complaints than a company with 1 million clients. Simple law of averages if they don t want to release number just show the percentage
The first table s heading is wrong. The second column should be Total Number of Claims and not Total Number of Complaints . That should give you a very accurate picture in terms of size (you can t count clients because different short-term insurance risks/products have different claim rates if you just insure cell phones against theft and somebody else does insure cell phones against damage AND theft the second one will have on average more claims per customer).
exactly, Statistics can only be compared in percentages
Since the overturn rate is a ratio, I think it is a good way of comparing the quality of the claims decisions of companies that write business with identical profiles. Apples with apples, in other words.
Total Claims is generally proportional to number of customers. In the cases that it doesn t match up exactly you d be off by less than a stand error margin (say 5%?)
The stats are they are are far more useful thank you think: it gives you the insight into which companies are fair and which are likely to rip you off.
For example: You are far less likely to complain with outsurance, but when you do you are far less likely to get your money than with New National. This points to outsurance being more honest with you than New National (who I hate with a passion).
No surprise at the number of complaints for Dial Direct and Auto General. The Telesure group are the biggest criminals I have ever done business with They should join up with old Jacob they way they do business.