Marine sector supports data-sharing insurance initiative

... but is not part of it at present THE MARINE sector of the SA insurance industry is not currently part of the data-sharing initiative proposed by the SA Insurance Association (SAIA) but certainly supports the idea behind it, according to John Hill, chairman of AMUSA (Association of Marine Underwriters of SA). "This is based on similar models in the UK, Europe and the USA," he told FTW, "which have the support of a number of consumer bodies in those countries." Like these, the SA initiative is intended to counteract fraud, which is a major problem in the insurance industry. "It's a serious problem in SA," he said, "and runs into billions each year." And the explanation for the support of the consumer groups is easy, Hill added. "Because, in the end, who pays? Not the insurance companies - but the consumers." Hill is certainly aware of the adverse reaction to this industry move sparked by fears that such an information-sharing data-base could be an invasion of privacy. But it is not intended to act on this basis but rather to protect insurance consumers from the activities of the fraudulent members. "By and large it's a sharing of claims information," said Hill, "intended to identify the perpetrators, and bring them to book. "And, if people don't welcome this sort of initiative, you have to ask yourself the question - Why? "I personally would have nothing against it. But then I don't have anything to hide." The move, Hill added, is not aimed at the marine insurance side of the industry at present. "The biggest problem area, in my opinion, is in the motor and personal insurance lines," he said. But similar fraud is also prevalent in certain areas of the marine business, he told FTW. "There have been a number of proven cases involving insurance of pleasure craft," said Hill. "You can add to that the fact that there is a huge investigation currently under way into scams involving marine cargoes of cigarettes and alcohol. These are supposedly stolen on their export movement out of SA but are actually sold in this country. "And, in a large number of cases, the main parties behind this Ôtheft' are the actual exporters of these goods."