Intention of Educ8

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(No Transcript)
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Intention of Educ8

• To provide an innovative risk solution.
• To provide superior, competitively priced covers
  for members.
• To harness the collective buying power of the
  members.
• To reduce the cost of insurance over the long
  term.
• Underwriting profits may be used for the benefit
  of members.

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What does the Educ8 product range entail?

• It is a wide range of products aimed at
• Schools
• Teachers
• Governing Bodies / School Management
• Students

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Current Educ8 Product Range

• Educ8 Multiperil Policy (Facility)
• Educ8 Personal Accident Protection Plan
• Educ8 PrivateEdge
• Educ8 Assist
• Existing brokers are able to access the facility

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Why a different approach?

• Schools do not always have adequate cover
• Escalating insurance costs
• Minimal incentive to manage risk
• No opportunity for profit share
• No overall risk information

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Conventional Insurance

• For every R1.00 VAT exclusive premium , the
  split is as follows

5 Profit 15 Administration 20 Commission 60
Risk Premium
5
15
20
60
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The Educ8 proposal

• We propose an Educ8 facility, in which
  underwriting profits are retained by the members.
• Offer superior cover at affordable prices (not
  neccesarily the cheapest)
• Provides a sustainable cost effective insurance
  solution.
• Provides unconventional Niche Products

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Benefits to SA Schools

• Obtain superior products at competitive prices
• Streamlined Administration Claims Management
• Web enabled Ability to access Policy and Claims
  information
• Lower insurance costs (if properly managed)
• Profit Share potential

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What covers are included in the Facility?
Conventional Covers

• Fire and Allied perils
• Office Contents
• Consequential loss
• Theft
• Money
• Fidelity
• Business All Risk

• Accidental Damage
• Electronic Equipment
• Motor (Own damage)
• Houseowners/holders

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How does it work?
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Service Model
School A
School C
School D
School B
Alexander Forbes Branches
Alternate/Approved Broker Network
Cre Facility Management
Schools Mutual
Underwriting
Cell Insurer
Policy
Claims

Administration
Services
Analysis
Re-Insurers/Wholesale
Niche Markets
Conventional Markets
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Fund Structure
Premium
After three (3) years, any surplus
reverts to the members
Fund
urplus
FUND
ARRANGED
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EDUC8
EDUC8
MULTIPERIL PROGRAMME
MULTIPERIL PROGRAMME
If insurer paid claims
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TRADITIONAL RISK
PROTECTION PURCHASED
exceed 60 of Premium
Paid, the Fund will begin
80
to contribute in order to
maintain the Loss Ratio
at 60.
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Premium Structure

• Example
• An annual premium R 7 000
• Broker Commission (20) R 1 400
• Balance of premium R 5 600
• 80 to Insurers R 4 480
• 20 to Contingency Fund R 1 120

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Premium Rebate Rules

• 3 Year Participation / No benefit if early
  withdrawl
• Individual Claims Ratio below 40
• Facility Claims Ratio below 60
• 50 of Fund Surplus refunded to members by
• Rate Reduction
• Premium refund
• Assistance with Risk Management Programmes

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Educ8 Personal Accident Protection Plan
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What Cover Will Be Provided?

• Accidental DeathScholars R 30 000School
  Employees R 50 000
• Permanent Disability R 1 000 000
• Medical Expenses Limit R 50 000
• Death Benefits Limit R 10 000

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Optional extensions

• Fees Remission
• Reimburses the pro-rata costs of school fees if a
  scholar is unable to attend school as a result of
  an accident or an illness for a continuous period
  of 5 days or more
• Serious Illness
• Pays a capital sum in the event of a scholar
  being diagnosed with a critical illness as
  specified, including cancer, coronary disease and
  blindness

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Optional extensions Cont..

• HIV
• Pays a capital sum should the scholar become HIV
  positivefollowing exposure to the HIV virus as a
  result of an accident
• Education Continuance
• Accident and IllnessPayment of school fees
  following a parent/guardian (the person
  responsible for payment of such fees) suffering
  anaccident/illness resulting in death or
  permenant disablity

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Optional extensions Cont..

• Education Continuance
• RetrenchmentIn the event of retrenchment of a
  parent/guardian cover will provide school fees
  for six-month period following the first month
  of unemployment
• 24 Hour Extention

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Product Pricing

• Compulsory benefits Various according to number
  of pupils, rates may be discounted by up to 40
  depending on the number of pupils involved
• Optional benefits - Various according to
  requirements/options

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Educ8 PrivateEdge
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Why Educ8 PrivateEdge?

• Governing Body Members of schools can be held
  responsible for actions and decisions they make
  on behalf of the school, putting their personal
  assets at risk
• Normal DO does NOT cover the School
• Thus the Schools reserves and even its future
  viability may be threatened
• Clearly this is of utmost concern where the
  fortunes of the School and its Members are
  interlinked

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What is covered?

• Labour Practice Liability- Losses arising from
  claims made by employees as a result of any
  Labour Practice Violation
• Trustee Liability- Losses arising from any
  breach of trustee responsibility in connection
  with any employment benefit fund
• Schools Management Liability - Losses by reason
  of a wrongful act

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What is covered Cont..

• Personal Management Liability- Loss by reason of
  any wrongful act in their capacity as a
  governing body member of the school, to the
  extent that the school is legally permitted or
  required to indemnify the insured person for
  such a loss
• Crisis Containment - Public relations costs
  necessary to manage a crisis that may result in
  a financial loss

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Labour Practice Violation encompasses

• Unfair dismissal
• Misleading representations relating to employment
• Unfair deprivation of career opportunities
• Harassment
• Employment-related
• Denial of natural justice
• Unlawful interference with privacy
• Defamation
• Discrimination
• Wrongful infliction of emotional distress, mental
  anguish or humiliation

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Trustee Liability encompasses
Legal costs, damages or judgements, and/or
settlements arising from claims made during the
policy period alleging any breach of trustee
responsibility in respect of any provident,
benefit, superannuation, pension or retirement
fund
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Schools Management Liability encompasses

• Covers the School for legal costs, damages or
  judgements, and/or settlements arising from any
  claim made during the policy period by reason of
  any Wrongful Act
• The School will be reimbursed for amounts it was
  legally entitled to and has paid out on behalf of
  its directors and officers as a result of their
  Wrongful acts

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Personal Management
Covers the Governing Body Members for legal
costs, damages or judgements, and/or settlement
arising from any claim made during the policy
period alleging a Wrongful Act committed by a
governing body member in that capacity except for
and to the extent that the school has in fact
indemnified the governing body member
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Crisis Containment encompasses

• Covers the Company for any Crisis Loss arising
  from a Crisis during the policy period.
• This cover is not subject to retention, however,
  it is sub limited to R 5 000.

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Some Exclusions

• Personal profits
• Criminal, dishonest, fraudulent, wilful,
  intentional or malicious acts
• Prior acts
• Bodily injury / damage to property
• Professional services

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Pricing

• Pricing primarily based on revenue
• Example of premiumRevenue Limit PremiumR 0 -
  1 000 000 R500 000 R1 750R 20 50 000 000 R5
  000 000 R6 800
• Limits above R5 000 000 but less than R10 000 000
  to be referred to AIG
• Can be paid monthly, Quotes done on line
• Revenue School fees, gov subs fund raising
  income

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Educ8 Assist
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Benefits to the School

• 1 Free event standby per year
• First aid kits at cost
• Audit of first aid kits
• Disaster management planning
• Utilisation reports
• Teachers are covered for medic assist

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Benefits to Pupils - Medical

• Emergency response
• Emergency transportation
• Medical referral
• Guaranteed hospital admission (R2000)
• Repatriation of mortal remains
• Escorted return

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Benefits to Pupils - Trauma Line (R10 000 benefit)

• Advice regarding- Exam pressure- Relationship
  problems- Rape- Drug abuse- Peer
  pressure- Pre-marital sex- Pregnancy- Suicide-
  Anorexia/Bulimia- School and learning problems

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Benefits to Pupils - Trauma Line (R10 000 benefit)

• Assistance with life threatening emergencies
• Drowning
• Burns
• Poisoning
• Overdose
• Allergies etc

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Benefits to Pupils Tutor Line

• Telephonic learner support for most subjects
• Assistance with projects via an Internet library
• Primary and secondary pupils

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Benefits to Pupils Computer Line

• Online advice
• Hardware additions
• Software additions
• Internet setup
• Programme enquiries
• Virus support
• PC games support
• Sony Playstation support

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Benefits to Pupils Career Counseling

• Personal career assessments
• Occupation search
• Study information
• Assistance with CV
• Job market trends
• FAQ relating to career planning job interview etc.

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Pricing

• Pricing R26.22 per annum per pupil inclusive of
  VAT or R2.20 per month
• Product will be included in all Personal Accident
  Protection Plan quotations

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Who does what?
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Cre-8 - Innovative Insurance Solutions

• Marketing of the Educ8 Product Range
• Management of the Educ8 Facility
• Ongoing development and enhancements of the Educ8
  Product range
• Existing brokers are able to access the facility
  through Cre-8

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Who earns what?

• Educ8 Multiperil
• Brokers Normal Brokerage
• Guardrisk 5 of Self insurance
  policy
• School Potential P/Share

• Educ8 Personal Accident Plan
• Brokers 20 Brokerage

• Educ8 PrivateEdge
• Brokers 15 Brokerage
• CFerreira 5 Facility Fee

• Educ8 Assist
• Brokers 10 Brokerage

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Educ8 Product Benefits
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Educ8 Product Benefits

• One of the many benefits to schools would be the
  ability to access their policy and claims
  information on the web.
• The AE will have to ensure that the clients
  information is created on the client extranet and
  updated on a regular basis
• Ongoing develepment and enhancements of the Educ8
  Product range will also be communicated to
  schools on the client extranet as well as on the
  Educ8 web sites

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www.educ-8.co.za
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https//client.alexanderforbes.co.za
Secure Site - Username and Password for each
user who wants to access site
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Risk Library

• What is a Risk Library?
• Risk library is essentially a web based centre of
  excellence for pure (operational / physical) risk
  related matters.
• For R25 per month (VAT exclusive) it provides
  its members with a comprehensive set of
  internationally recognised Best Practice
  Standards which are used to indentify, evaluate,
  treat and monitor Pure (physical) Risk Exposure.

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Risk Library (cont)

• Risk Standards / Compliance Modules (Web Access)
• Risk Control Organisation and Administration
• Fire
• Security
• Emergency Planning
• Motor Vehicles
• Occupational Health and Safety System

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Risk Library (cont)

• Self Audit Documents / Risk Management Check
  Lists Applicable to Specific Business.
• Project Plan Document to track progress and
  allocate responsibilities to risk improvements
  with timelines
• Toll-free Advice Line Risk Engineering
  Consultant to handle queries.
• Client visits (if required), will be negotiated
  by Risk Engineering Consultant (at an additional
  fee).

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www.risklibrary.co.za
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The Way Forward

• Approach Cre-8 to quote on existing business for
  a comparative analysis.
• Provide Cre-8 with a mandate to place all
  business onto Educ8 Facility.
• Provide the following info in respect of existing
  schools
• Details of clients
• Current structure of covers/excesses
• Premium/commission structure per class insurance
• Historical losses per class
• New Business template to be completed for new
  clients

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Any questions?
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Thank you
YOUR CRE-8 CONSULTANT Sales and
Marketing Cre-8 Telephone 011 669
3000 Websites www.cre8sa.co.za www.alexanderfor
bes.com
ELIZE BOTHA Research Development Cre-8 Telephon
e 011 669 3494 Facsimile 011 669 2396 Mailto
elize.botha_at_cre8sa.co.za