Business insurance brokers and underwriters in South Africa – what is an underwriting manager and how can they assist you with insuring your business?
An underwriting manager is any person:
- Who underwrites and issues a financial product to clients in the form of a short-term policy as defined in the Short-term Insurance Act, No 53 of 1998, by virtue of an authority approval or right granted to such a person in terms of a written agreement entered into by a person with a sort-term insurer or a Lloyd’s underwriter authorised to carry on short-term insurance business in SA.
- An underwriter is someone whose sole remuneration resulting from such activities and the person is deemed to be an agent of the short-term insurer or Lloyd’s underwriter, and
- Whose acts will in all respects be and are fully binding upon the short-term insurer or Lloyd’s underwriter, and
- Who receives premiums as an underwriting manager on behalf of the short-term insurer or Lloyd’s underwriter, and then the premiums will irrevocably be deemed to have been received by the short-term insurer or Lloyd’s underwriter, and
- Who in terms of the written agreement with a short-term insurer or a Lloyd’s underwriter has the authority to:
- Accept, bind, commit and quote terms and conditions in respect of insurance business on behalf of the short-term insurer or Lloyd’s underwriter, and
- Adjudicate, settle, compromise and agree to claims on behalf of the short-term insurer or Lloyd’s underwriter, and
- Provide services that would normally have been provided by a short-term insurer or a Lloyd’s underwriter had the underwriting manager not been in existence and if the insurance business been accepted by the short-term insurer or Lloyd’s underwriter.
Business insurance brokers in South Africa play an important role in protecting one’s business assets – ensure you choose wisely.
