Prestmarine caters for currency fluctuations

UNDERWRITERS ARE becoming increasingly reluctant to insure consignments in huge dollar amounts where premiums are invoiced in SA rands, says Prestmarine International managing director Riaan Grobbelaar. "Receiving premiums in rands and having to settle claims in dollars has resulted in major currency losses for insurers," he told FTW. "The general feeling of underwriters is that the purpose of a marine policy is to insure against marine perils and not currency fluctuations." Grobbelaar further notes that claims ratios have deteriorated considerably as a result of this phenomenon, and not necessarily because of excessive losses. "The result is that underwriters automatically penalise a client by way of higher rates, because he has to cover dollar based sums insured on SA rand premiums," he said. In a bid to overcome the problem, Prestmarine International has introduced a product where premiums can be paid in dollars where claims have to be settled in dollars, thereby eliminating any form of penalty imposed by the underwriter. "We saw where the rand was going and decided to introduce this product last year," said Grobbelaar. "Our clients can now rest assured that currency fluctuations are catered for, should a major loss occur."