The short-term insurance industry in South Africa is extremely competitive and it is a challenge to retain clients in order to remain profitable. In light of this the intention of this study was to investigate suggestions from the academic fields of marketing management and communication management towards the retention of clients specifically pertaining to the short-term insurance industry. Each of the academic fields includes relating approaches and theories which are pertinent to the retention of clients. Marketing management deems relationship marketing as most appropriate and likewise, relationship management in the stakeholder theory from communication management was selected. The two concepts that logically followed from this are therefore customer relationship management (CRM) from marketing management and public relations (PR) from communication management. The purpose of this study was to compare and contrast the suggestions made by marketing and communication management as academic fields towards client retention, in order to investigate the validity of these client retention methods and the possibility of combining their suggested methods. CRM and PR was thus investigated and validated as a possible integrated approach to client retention in the short-term insurance industry in South Africa. The problem addressed in this study relates to the competitive and challenging nature of the short-term insurance industry and insurance organisations’ continuous struggle to keep clients in order to survive. Swart (1998) addressed the issue of high policy lapse ratios and the resulting tremendous strain on the life insurance industry and confirmed that the quality of services and the quality of client relationships determines the retention of clients. No in-depth study could be found on whether Swart’s (1998) confirmation that the quality of relationships determines client retention also applies to the short-term insurance industry. The main purpose of this research was to suggest an integrated approach from the fields of marketing (CRM) and communication management (PR) and test this integrated approach among short-term insurance clients and short-term insurance organisations in order to get perspectives from both groups of respondents. The integrated approach was tested among these respondents by means of qualitative in-depth interviews with the aim to determine the effectiveness and relevance of such an integrated approach from the two academic disciplines to retain clients in the extremely competitive and challenging short-term insurance industry. The findings from the two groups of respondents, namely the short-term insurance clients and short-term insurance organisations, yielded interesting results. On the one hand both groups suggested new concepts as possible client retention tools. It could be argued that this adds to the relevance of the validity of these concepts. On the other hand it was also established that certain concepts, as identified throughout marketing and communication management literature, might not be as relevant to client retention efforts in the short-term insurance industry. Furthermore the findings also indicated that certain gaps existed between what short-term organisations regard as essential to retain clients and what clients regard necessary for them to stay in the relationship with the organisation. Clear inconsistencies were evident and may explain why so many client retention strategies are unsuccessful. Based on these findings a conceptual integrated framework for the implementation of client retention strategies relevant to the short-term insurance industry was presented. The study intends to contribute in three ways. Firstly, by contributing to the theoretical body of knowledge through the development of an integrated framework towards client retention in the short-term insurance industry. Secondly, from a practical perspective where findings can assist marketing and PR practitioners to retain clients more effectively. Finally, it is anticipated that the study has added to the theoretical knowledge by presenting a qualitative dimension by means of in-depth interviews whereby possible new concepts (not included in current marketing and communication management literature) relating to the retention of clients are identified. These possible new concepts may not only assist organisations to increase the success of retention efforts but also enrich the theoretical body of knowledge. Copyright / Dissertation (MCom)--University of Pretoria, 2012. / Communication Management / MCom / Unrestricted

Operational risk management has been identified as one of the primary risk types that short-term insurance companies will have to deal with on a rigorous basis in the future.

Operational risk management has been identified as one of the primary risk types that short-term insurance companies will have to deal with on a rigorous basis in the future.

Magister Commercii - MCom / In a contemporary local context characterised by significant socio-economic challenges, exacerbated by rising systemic risks, and hampered by capacity constraints of the state, we examine the case for a strategic approach to corporate social responsibility (CSR) as risk management for the public good. In this study, we propose that CSR could offer value as risk management to firm stakeholders and broader society, by aligning state, business, and societal objectives in tackling shared risk and by addressing some of the challenges associated with contemporary CSR practice. The objectives of this thesis were, therefore, twofold. First, to explain the relevance between the concepts of risk management and CSR and how a strategic approach to CSR as risk management may operate as a mechanism influencing practice and impact. Second, to analyse such an approach in practice to interrogate our propositions of CSR as risk management and to identify its key enabling and disabling factors. To achieve the first objective, we developed a theoretical and conceptual framework that positions CSR as a necessary and appropriate strategic risk management response to inefficient and inequitable markets. To achieve our second objective, we undertook an instrumental case study of Santam Limited and its proactive, pro-social risk management initiative, Partners for Risk and Resilience (P4RR). Using a critical realist case study approach, we interviewed 22 participants drawn from the company’s social and organisational contexts. Our findings suggest that the interaction of four principal stakeholder entities gave rise to P4RR: investors, company management, employees, and the state, and we would characterise the primary mechanism driving the Initiative as competitive pressures emanating from the market. Our findings broadly support our propositions that risk management is a useful analytical framework for CSR and, as a strategic approach, may encourage firm-wide integration of CSR practice and cooperation with salient stakeholders, while providing a rubric with which to evaluate its usefulness. Our findings are somewhat supportive of the proposition that such an approach may lead to a response to uncertainty that aligns more closely with economic risk management. Recommendations for future research include multiple case study analyses of different companies that engage in risk management for the public good. Strategically, we recommend the elevation of local government planning processes as a tool with which to align corporate pro-social activities to maximise the contribution to the public good.

South African short-term insurers are finding it increasingly more difficult to maintain their market value amidst unpredictable and erratic economic conditions. In addition, the short-term insurance industry is faced with two major challenges: the growing number of direct short-term insurers entering the industry, and the significant decline in customer retention rates. Based on the literature review, it was found that these challenges present short-term insurers with a strategic imperative – they need to adopt a CRM approach, incorporating an integrated customer focus aimed at developing long-term relationships with customers. If they want to succeed in this pursuit, short-term insurers need to understand their customers‟ perceptions of the service offering, their existing relationship with the insurer, their levels of satisfaction, and their behavioural intentions towards the insurer. The primary objective of this study was to determine the influence of both direct and indirect short-term insurers‟ service quality and benefits derived from being in a relationship with the insurer, specifically on their customers‟ levels of satisfaction, their loyalty, and positive word- of-mouth intentions. In this vein, the study also sheds light on how short-term insurers can adapt their marketing strategies in order to develop and maintain successful long-term relationships with their customers. The study followed a descriptive research design. Convenience sampling was used to select suitable respondents, and data was collected by means of mall-intercept, person-administered surveys from individuals residing in the Gauteng Province of South Africa and who currently have short-term insurance. A sample size of 891 responses was realised. The results from the study indicate that respondents’perceptions of their insurers’ service quality offering do not differ significantly from their expectations. In other words, respondents seem to be satisfied with their insurers’ services. Results furthermore showed that quality services and additional relational benefits positively influence respondents’ levels of satisfaction with their short-term insurers, which in turn influence their intentions to remain loyal to their insurers or to communicate positively about them. In addition, no significant differences were observed between direct and indirect short-term insurance respondents with regard to service quality, relational benefits, customer satisfaction, or behavioural intention. Based on the results, this study proposes a model that sets out to demonstrate how South African short-term insurers can utilise service quality and relational benefits to realise and improve customer satisfaction, in order to encourage positive behavioural intentions among their customers. It is recommended that, in order to differentiate themselves, short-term insurers (both direct and indirect) should ensure that their service quality offerings are superior to those of their competitors’. Short-term insurers can attain high quality service offerings by paying special attention to their reliability, responsiveness, assurance and empathy. It is also recommended that short-term insurers should attempt to provide the same levels of relational benefits to all of their customers, independent of demographic differences, as a way to improve the overall morale and satisfaction of their customers. Since no significant differences were found in terms of different groups of respondents, it is further recommended that short-term insurers should differentiate themselves by customising their target market(s), through focusing their service and relational offerings on specific demographic, geographic, and psychographic segments. Finally, it is recommended that short-term insurers should use the model developed in this study with a view to improve the overall effectiveness of their CRM efforts. Recommendations for future research include extending this study to other South African provinces, in order to determine whether differences exist between respondents from different geographic locations. Future research can include representative numbers of respondents from each individual short-term insurer with a view to attain more accurate and representative information regarding specific insurers. A similar study can also be conducted among long-term insurers in order to determine whether the insurance industry in its entirety can benefit from the findings from this study. Finally, future research can test the CRM model presented in this study in the context of other service industries to determine its relevance and applicability. / Thesis (PhD (Marketing management))--North-West University, Potchefstroom Campus, 2013

South African short-term insurers are finding it increasingly more difficult to maintain their market value amidst unpredictable and erratic economic conditions. In addition, the short-term insurance industry is faced with two major challenges: the growing number of direct short-term insurers entering the industry, and the significant decline in customer retention rates. Based on the literature review, it was found that these challenges present short-term insurers with a strategic imperative – they need to adopt a CRM approach, incorporating an integrated customer focus aimed at developing long-term relationships with customers. If they want to succeed in this pursuit, short-term insurers need to understand their customers‟ perceptions of the service offering, their existing relationship with the insurer, their levels of satisfaction, and their behavioural intentions towards the insurer. The primary objective of this study was to determine the influence of both direct and indirect short-term insurers‟ service quality and benefits derived from being in a relationship with the insurer, specifically on their customers‟ levels of satisfaction, their loyalty, and positive word- of-mouth intentions. In this vein, the study also sheds light on how short-term insurers can adapt their marketing strategies in order to develop and maintain successful long-term relationships with their customers. The study followed a descriptive research design. Convenience sampling was used to select suitable respondents, and data was collected by means of mall-intercept, person-administered surveys from individuals residing in the Gauteng Province of South Africa and who currently have short-term insurance. A sample size of 891 responses was realised. The results from the study indicate that respondents’perceptions of their insurers’ service quality offering do not differ significantly from their expectations. In other words, respondents seem to be satisfied with their insurers’ services. Results furthermore showed that quality services and additional relational benefits positively influence respondents’ levels of satisfaction with their short-term insurers, which in turn influence their intentions to remain loyal to their insurers or to communicate positively about them. In addition, no significant differences were observed between direct and indirect short-term insurance respondents with regard to service quality, relational benefits, customer satisfaction, or behavioural intention. Based on the results, this study proposes a model that sets out to demonstrate how South African short-term insurers can utilise service quality and relational benefits to realise and improve customer satisfaction, in order to encourage positive behavioural intentions among their customers. It is recommended that, in order to differentiate themselves, short-term insurers (both direct and indirect) should ensure that their service quality offerings are superior to those of their competitors’. Short-term insurers can attain high quality service offerings by paying special attention to their reliability, responsiveness, assurance and empathy. It is also recommended that short-term insurers should attempt to provide the same levels of relational benefits to all of their customers, independent of demographic differences, as a way to improve the overall morale and satisfaction of their customers. Since no significant differences were found in terms of different groups of respondents, it is further recommended that short-term insurers should differentiate themselves by customising their target market(s), through focusing their service and relational offerings on specific demographic, geographic, and psychographic segments. Finally, it is recommended that short-term insurers should use the model developed in this study with a view to improve the overall effectiveness of their CRM efforts. Recommendations for future research include extending this study to other South African provinces, in order to determine whether differences exist between respondents from different geographic locations. Future research can include representative numbers of respondents from each individual short-term insurer with a view to attain more accurate and representative information regarding specific insurers. A similar study can also be conducted among long-term insurers in order to determine whether the insurance industry in its entirety can benefit from the findings from this study. Finally, future research can test the CRM model presented in this study in the context of other service industries to determine its relevance and applicability. / Thesis (PhD (Marketing management))--North-West University, Potchefstroom Campus, 2013

Thesis (MComm)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Almost all enterprises, individuals and organisations face some form of political risk on a continuous basis. In the past, mines have been lost, terrorist attacks have been devastating, and financial markets have experienced large losses due to political risk factors. We live in an ever-increasing politically insecure world where political risk factors and the analysis thereof receive increasing attention from both international and domestic establishments. From a business perspective, making the correct business decisions and determining the appropriate risk management strategy consequently are crucial to the success of an enterprise, due to the ever-present nature of political risk factors in the business environment. Especially in the emerging market economies of the world, political risk is an important phenomenon. In such emerging market economies, political risk factors could play a role that is as important as the economic factors that are decisive in the performance of markets. It is well known that the emerging market economies of the world have been the main recipients of foreign direct investments. A closer study of these economies has indicated that the majority of such investments have gone to the so-called BRICS countries (the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People‟s Republic of China, and the Republic of South Africa). After having studied the political and economic environments of the BRICS countries, it was concluded that ten political risk factors are common to these countries, namely nationalisation, confiscation, creeping expropriation, currency inconvertibility, breach of contract, non-honouring of government guarantees, war, violent civil unrest, non-violent civil unrest and terrorism. These political risk factors were investigated in a South African context by means of an empirical survey. A census was undertaken that consisted of structured personal interviews (based on a questionnaire) that were pre-arranged with most of the agents who sell Sasria insurance on behalf of Sasria Ltd. These agents mainly were conventional short-term insurers who handled claims on behalf of Sasria Ltd., which placed them in an excellent position to provide the study with valuable information. Violent civil unrest and non-violent civil unrest have not only been the political risk factors that had the most important impact on the total annual claims amount of the respondents over the past five years, but have also been the political risk factors that most frequently resulted in claims. It therefore did not come as a surprise that these were the two political risk factors for which there had been the highest level of demand for cover over the past five years. In terms of the importance of impact, the frequency of claims and the demand for cover, violent civil unrest and non-violent civil unrest are expected to remain the two most important political risk factors in South Africa over the next five years. When compared to the past five years, all the political risk factors (excluding breach of contract) are expected to have an increased impact in South Africa over the next five years. They are also expected to present an equal number or more claims in general. While excluding war and terrorism, the expectation is that the demand for cover against them will generally remain at the same level, but may increase. The South African short-term insurance industry generally faces considerable challenges regarding the cover provided against political risk factors to the public and businesses in South Africa. The industry and the South African public therefore need to be aware of the impact that various political risk factors have on the cover that is provided. This research study should assist the executives of short-term insurance in making better risk management decisions and exercising better control over their responsibilities regarding specific political risk factors in South Africa. / AFRIKAANSE OPSOMMING: Feitlik alle ondernemings, individue en organisasies kom voortdurend voor een of ander politieke risiko te staan. In die verlede was daar verlies van myne, terroriste-aanvalle het verwoesting gesaai en finansiële markte het groot skade gely vanweë politieke risikofaktore. Ons bevind onsself in 'n wêreld van toenemende politieke onsekerheid waarin internasionale sowel as binnelandse instellings meer en meer aandag aan politieke risikofaktore en die ontleding daarvan wy. Vanuit 'n sakeperspektief word korrekte besigheidsbesluitneming en die vasstelling van toepaslike risikobestuurstrategië vanweë die voortdurende teenwoordigheid van politieke risikofaktore binne die sake-omgewing gevolglik van uiterste belang vir die sukses van 'n onderneming. Politieke risiko is veral in die ontluikende mark-ekonomieë van die wêreld 'n belangrike verskynsel. In hierdie ontluikende mark-ekonomieë kan politieke risikofaktore 'n rol speel wat net so belangrik is as die ekonomiese faktore wat deurslaggewend is ten opsigte van hoe markte presteer. Dit is welbekend dat die ontluikende mark-ekonomieë van die wêreld die vernaamste ontvangers van buitelandse direkte beleggings is. 'n Nadere beskouing van hierdie ekonomieë het getoon dat die meerderheid van sulke beleggings na die sogenaamde BRICS-lande (die Bondsrepubliek van Brasilië, die Russiese Federasie, die Republiek van Indië, die Volksrepubliek van China en die Republiek van Suid-Afrika) gaan. 'n Studie van die politieke en ekonomiese omgewings van die BRICS-lande het tot die gevolgtrekking gelei dat hierdie lande tien politieke risikofaktore in gemeen het, naamlik nasionalisering, beslaglegging, kruipende onteiening, onverwisselbaarheid van valuta, kontrakbreuk, nie-nakoming van regeringswaarborge, oorlog, gewelddadige burgerlike onrus, nie-gewelddadige burgerlike onrus, en terrorisme. Hierdie politieke risikofaktore is met behulp van 'n empiriese ondersoek binne die Suid-Afrikaanse konteks ondersoek. Gestruktureerde persoonlike onderhoude (wat op 'n vraelys gebaseer was), is gebruik om 'n sensus te onderneem. Hierdie onderhoude is vooraf met agente wat Sasria-versekering namens Sasria Bpk. verkoop, gereël. Die agente was hoofsaaklik konvensionele korttermyn-versekeraars wat alle eise namens Sasria Bpk. hanteer. Hulle was dus in 'n uitstekende posisie om die studie van waardevolle inligting te voorsien.

This study sought to examine the value of modus operandi (MO) information in the investigation of short-term insurance fraud. A comprehensive literature study was conducted concerning the dynamics of MO information in forensic investigation and short-term insurance fraud in South Africa and internationally, and individual semi-structured interviews were conducted with forensic investigators at Santam and MiWay to promote knowledge and understanding of the importance of MO information in short-term insurance fraud investigations. Results of this research indicate that participants did grasp the significance of MO information in the investigation of short-term insurance fraud. It is, however, apparent that they did not optimally exploit MO information regarding insurance fraud as a result of limited experience, ineffective databases and the inaccessibility of available data – all of which prevent the improvement of utilising MO data pertaining to short-term insurance fraud. Forensic investigators in the short-term insurance industry isolate themselves from each other and fail to share the available MO information amongst each other, resulting in a non-systematic fragmented approach to short-term insurance fraud investigation. The study identifies the challenges and shortcomings experienced by forensic investigators at Santam and MiWay that prevent the optimal utilisation of MO information in the investigation of short-term insurance fraud. The study then suggests a set of recommendations that could assist forensic investigators and other role-players in enhancing the utilisation of such information. / Criminology and Security Science / M. Tech. (Forensic Investigation)

Thesis (Ph.D.(Psychology))--University of the Witwatersrand, Faculty of Humanities, 2013. / The research entailed a comprehensive study of vicarious trauma in short-term insurance claims workers, compared to trauma counsellors and a control group of holiday booking consultants. A well-known, comprehensive model of compassion fatigue/secondary traumatic stress, developed for therapists formed the basis of the study. The research attempted to determine whether this model can be applied more widely to include administrative populations exposed to traumatised clients on a regular basis. To this end, the model was deconstructed into its eleven constituent parts and each element was investigated in addition to other variables of interest to the study. This was done to determine the importance and applicability of each model element and other selected variables to the administrative context. A mixed methods approach was utilised, which combined quantitative and qualitative data. The results yielded by the study were collectively utilised to construct an etic and an emic voice from the research. At the same time, effects from vicarious trauma were considered from an overarching bio-psychosocial stance, systematically gauging effects on various levels of functioning. Scores from quantitative measures on secondary traumatic stress, negative cognitive schemas, empathy, social support and compassion satisfaction were statistically analysed, which revealed significant differences between the worker groups. Widely accepted relationships between the study variables were tested and found to hold true within and across groups. Regression analysis determined the roles of empathy, social support and compassion satisfaction in vicarious trauma, as measured by secondary traumatic stress and negative cognitive schemas. In addition, constructivist selfdevelopment theory was employed to interpret the negative cognitive effects from vicarious traumatisation. Qualitative data were utilised to further elucidate the role and nature of vicarious trauma in each of the worker groups. The themes of exposure to client suffering, detachment, level of empathic engagement, personal trauma history and difficult life demands were unearthed from the qualitative data, which illuminated the importance and role of each of these elements to claims workers. Other areas of interest, being utilisation of sick-leave as a means to cope, work-related illness, attitudes towards professional counselling, feelings evoked by traumatised clients, and the language utilised by workers in response to client traumata were investigated. Further effects on participants as well iv as effects that reach beyond the person were identified and examined. Effects on the social and work contexts were also elucidated. Finally, interesting themes that emerged spontaneously from the data were considered. The consideration of the various model elements and other areas of interest systematically revealed that administrative workers dealing with traumatised clients are also affected by the process of vicarious trauma. Furthermore, the model was found to be largely suitable to the context of claims workers. However, the model was expanded to augment its usability within the more general administrative domain. Finally, the overarching aim was to enrich, contextualise and elaborate on the experiences of claims workers within their unique work context, to facilitate insight and a deeper understanding of vicarious trauma in more administrative populations that have largely been overlooked in research.

This study shows that managers of short-term insurers may improve their financial results if they can identify and manage the factors that are critical to their financial results. The development and application of the concept of critical success factors are therefore used as a basis for this study. The study reviews the functions performed by short-term insurers, focusing on the effect these functions have on their cash flows. Selection and pricing of risk are discussed in detail. The underwriting cycle in South Africa, and several possible causes of the cycle are investigated. Reinsurance, claims handling and rilanagement expenses are important components of the cash flows of short-term insurers and are therefore examined in detail. The optimum risk level at various combinations of underwriting and investment income is empirically tested, using the financial results of several insurers. The study investigates different approaches to the measurement of financial success of insurers, and the return on shareholders' funds is found to provide the fairest and most reliable method. Empirical comparisons are made on the financial results of the insurers that participated in the study to distinguish between those that are financially successful and those that are not. To discover what the industry consider to be their critical financial success factors, a postal survey was done of key decision makers in the South African short-term insurance industry. Respondents identified several success factors, but did not include some success factors discovered during the review of the literature. Respondents apparently experienced difficulty in separating strategic issues from operational ones. The survey revealed that the pricing of risk is problematic for short-term insurers. The importance of the investment function is also underestimated by the industry. The study concludes that the combined systematic risk of the investment and underwriting portfolios is a critical success factor, along with the capital base of the insurer, the ability of the insurer to use the leverage provided by using policyholders' funds as free reserves and the size and direction of an insurer's cash flows. / Business Management / D. Com (Business Management)