The Ombudsman for Short-Term Insurance (OSTI) is an independent body that short-term insurance clients can contact if they feel that their insurance claim was not treated fairly. The latest OSTI report was released earlier this week and indicates how fairly each insurer handled their claims for the 2016 calendar year.
The OSTI report is especially valuable when you look at stats showing the number of complaints that were submitted per 1000 claims received by the insurer (i.e. referral rate). In addition, you can also look at the number of complaints that were in fact overturned by the Ombudsman (i.e. instances where they agreed with the complainant that the claim was not treated fairly).This number is referred to as the overturn rate.
If you consider the results for all the major South African short-term insurance companies, it’s clear that OUTsurance has once again beaten the industry averages in terms of the overturn rate and the referral rate.
If you take both factors into consideration, and you also look at the total claims that were handled in the calendar year per insurer, you’re also able to get a better overall idea of the insurance company’s individual performance.
So, looking at the overall picture (i.e. the product of the overturn rate and the referral rate), it’s evident that OUTsurance has, for the third year in a row, come out tops. Their overturn rate is only 1.7 claims per 10,000 claims processed.
Burton Naicker, the Head of Claims and Legal at OUTsurance commented that he’s very pleased with the results. He says that the claims team at OUTsurance always considers the merit of a claim rather than just reviewing a claim according to the underwriting requirements.
For more information on the 2016 OSTI results,
For more information on the 2016 OSTI results, click here.
Source: 2016 OSTI report; www.osti.co.za/annual-reports.html