The 2015 financial year has proven to have been better than 2014 from a natural catastrophe perspective for the industry with the only significant event been the impact of the droughts on the agri sector which PPS Short-Term Insurance (PPS STI) does not operate in.
From an operational perspective PPS STI has enjoyed a growth of 8% on its gross written premiums and met its profit targets as budgeted.
In the year PPS embarked on obtaining its own Insurance license which has been awarded by the FSB and PPS STI now operates as an insurance company and not a broker. This will allow us to design and price our own product range and distribute this through the broker market, which suits our members as they prefer having the benefit of personal advice on their short-term insurance needs. It is the intention of PPS Short-Term Insurance (PPS STI) to allow members to convert their current policy to the new policy that is underwritten by PPS STI.
Due to the volatility of the short term industry PPS has decided to partner with Santam on the short- term business in order to benefit from Santam’s technical ability with respect to rating, underwriting and claims management. Santam has one of the best claims management processes in the country and will be managing PPS STI’s claims for it.
This is an exciting period in our development as we believe we can now satisfy and service the wider PPS member base as well as potential new members through our offering. We will be offering products that will cover the members personal and business requirements through a personal lines product as well as a business solution for members’ practices and covering their Professional Liability as well.
PPS Short-Term Insurance (PPS STI) will eventually, once it has achieved critical mass and reached profitability, also contribute to the members’ Profit-Share Accounts through dividends that will be accrued to PPS Insurance Company Ltd.
|MOTOR AND HOUSEHOLD INSURANCE||KEY INDICATORS||2015||FIVE YEAR REVIEW|
|PPS Short-Term Insurance offers PPS members the opportunity to obtain short term insurance at exclusive rates, in partnership with a leading underwriter in the South African market.||Number of policyholders||11 683|