Banking & Insurance

The South African Reserve Bank (SARB) cut rates by another 100 basis points this morning in an inter-meeting move. Rates are now down 225 bps since the start of the year, and down 250bps since July last year.

Many companies are having to shutdown their premises temporarily at short notice due to the COVID-19 pandemic. Improper action or negligence when decommissioning buildings and production facilities brings risks for companies. Mothballed factories or offices are by no means safe from fire or other hazards – in fact such risks can be exacerbated when premises are idle or largely unoccupied. 

On March 12, 2020, a plaintiff shareholder filed a securities class action lawsuit against Norwegian Cruise Line Holdings, alleging that the company was employing misleading sales tactics related to COVID-19 bookings and cancellations. Another D&O claim was lodged soon after against Inovio Pharmaceuticals relating to statements the company made about developing a vaccine for COVID-19.

After the likely spike in insurance claims arising from the COVID-19 pandemic, insurers are likely to introduce new or change  existing exclusionary clauses which were not previously considered to be necessary. The rapid spread and potential damage of the coronavirus presents an extraordinary situation for governments, businesses and individuals.

Understanding and drawing on the cancellation, refund or insurance covers of all operators in the travel value chain offers victims of COVID-19 cancellations the best option to spread their risk, increasing the chances and value of settlement. Now that COVID-19 has been declared a global pandemic it is simply not possible to travel internationally.

The relentless drive towards digital banking is making banks ‘invisible’, leaving customers looking for more value, human engagement and diversity of transactional channels according to the South African Customer Satisfaction Index (SA-csi) for banking.

An interview with Raynold Tlhavani, Partner Webber Wentzel, and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing business interruption insurance in the light of impact of COVID-19.

With reports that more than half of companies around the world do not have effective business continuity plans in place to combat an infectious disease outbreak like COVID-19 and the virus starting to take a stronger foothold in South Africa, businesses must do more to prepare themselves for the repercussions this could have on operations.

While people who contract COVID-19 (corona virus) who are under the age of 80 and do not have any pre-existing conditions - such as cardiovascular disease, diabetes, chronic respiratory disease, hypertension or cancer - are most likely to experience only flu-like symptoms, those who are over 80 years’ of age or individuals with pre-existing conditions are certainly at a much greater risk.

The out-break of Covid-19, which originated in China and has since spread to most of the world, is one of the most serious threats to public health in recent times and has now been designated as a pandemic by the World Health Organisation.