Losses generally severe rather than frequent

The weakening of the rand has played a major role in insurance companies’ turnover figures, according to Prestmarine. A short-term insurance intermediary based in Bedfordview in Johannesburg and specialising in marine, transit, commercial and personal lines insurance, the company saw turnover figures drop in 2008. “It was a challenging year, with increasing costs and the weakening rand impacting our clients,” said Prestmarine’s Susan Bester. “Despite these factors it was not all bad. We are however anticipating some tough times ahead.” Bester said the uncertain worldwide economic situation had a direct influence on the insurance industry. “Several opportunities exist in Africa though, especially in the mining industry. We have been the appointed intermediary of several mining operations in South Africa for the past 20 years and are also involved in the insurance of minerals and capital goods for mining companies in the DRC and Zambia.” She said with a large number of clients in the north the company was already looking into the possibility of opening an office in Zambia in the new year. She said the mining industry held many opportunities for Prestmarine in the coming months. “We look at the client’s entire exposure and ensure that all aspects such as in transit, storage, political confiscation, erection and testing as well as consequential losses are covered. With mining sites very often situated in areas that are not easily accessible due to roads being in bad condition, the risk of accidents and vehicles overturning increases. When these losses do occur, salvage operations are complicated and sometimes impossible. It is therefore more a fact of severe losses occurring rather than small frequent losses.