Commercial Crime Insurance for Clients in the Rand Common Monetary Area (CMA)
One of the effects of the COVID19 pandemic has been an increase in the number of commercial crime cases experienced by corporates, small to medium sized organisations and public sector in Africa. There has been a surge in the demand for commercial crime insurance both in the insurance and reinsurance markets across the southern and eastern African region. Despite the increase in demand for the insurance cover, capacity for commercial crime insurance remains limited.
Maksure Risk Solutions has negotiated and structured a commercial crime insurance cover for insurance and reinsurance buyers operating in the Rand Common Monetary Area (CMA) which links South Africa, Namibia, Lesotho and Eswatini into a monetary union. The insurance product is structured and priced in the South African Rand as the currency of acceptance.
Commercial crime insurance covers a business against direct financial losses that arise as a result of theft and fraud by employees, computer fraud, loss due to a computer virus, electronic data loss, extortion, fraudulent transfer instructions or third-party impersonation fraud, among other things.
The Maksure Risk Solutions commercial crime insurance has six sections which are:
| Employee dishonesty | This covers the employer against fraud committed by employees either operating alone or in collusion with others. |
| Computer fraud | Direct theft by any person via a company’s computer systems. |
| Computer virus | Direct financial loss sustained as a result of a computer virus. |
| Electronic data loss | Direct financial loss sustained as a result of the malicious alteration or destruction of data. |
| Extortion | Direct financial loss sustained as a result of an employee being threatened with physical harm. |
| Fraudulent transfer instructions | Direct financial loss sustained as a result of fraudulent transfer instructions sent to a financial institution holding a company’s assets. |
Commercial crime insurance does not provide coverage for consequential losses. Consequential losses excluded are as follows:
- Reputational damage or loss of brand value
- Interest which may have been earned had the loss not occurred
- The loss of potential profits which would potentially have been earned had the loss not occurred
- The loss of business to a competitor as a result of employee dishonesty (even if that competitor is an ex-employee who may have stolen confidential customer data)
- Potential loss of income/profit as the result of the theft of trade secrets or intellectual property
“We believe that our newly negotiated commercial crime insurance cover will be a breathe of fresh air in the market as capacity is currently constrained” said Mr. Knight Mawere, Chief Operations Officer at Maksure Risk Solutions.
For more information regarding our Commercial Crime Insurance, contact our Corporate and Facultative Reinsurance teams at +27 11 805 0086 or email info@maksure.co.za.
About Maksure Risk Solutions
Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.
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