- A subsidiary of Old Mutual Insure is launching a bespoke insurance policy for wealthy South Africans.
- South Africa now has more than 43,000 high-net worth individuals (people who are worth more than R12 million).
- The policy offers cover against cryptocurrency theft and accidents from self-driving cars.
Elite Risk Acceptances, a subsidiary of Old Mutual Insure, has launched a new insurance policy to cater to the specific needs of high-net worth South Africans (those individuals worth more than R12 million).
There are some 43,600 of these individuals in the country, and despite the tough economy, their numbers grew by 8% in 2017 according to New World Wealth’s 2018 South African Wealth Report.
"This market [high-networth South Africans] has very specific needs ... and is seeking a more comprehensive offering," says the MD of Elite Risk, Christelle Colman.
The new insurance policy will include cover for the following:
1. Cryptocurrency theft
In line with the global growth of cryptocurrencies, Elite will cover theft of digital currencies as a result of hacking, says Colman. However, policyholders can expect a relatively low maximum payout of R5,000 for the loss of cryptocurrency as a result of cyber crime.
According to Colman, the policy will also be the first to cover for the loss of cash as a result of phishing.
2. Accidents from self-driving vehicles
Audi's A8 luxury sedan is the first car with Level 3 self-driving capability.
As some vehicles in SA now have self-driving features, the Elite policy will cover accidents that occur while a vehicle is in self-drive mode, for instance when parking.
Because "wealthy individuals don't like to drive cars once they've been involved in an accident, no matter how small," according to Colman, the policy also assists policyholders who want to buy a new car afterwards. It will cover the gap in value created by the loss in trade-in value as a result of the accident.
3. Art collections and other collectibles
Extensive Landscape Northern Transvaal made auction history in 1985 when it became the first South African painting to break the one hundred-thousand rand mark, selling for R120 000. (Strauss & Co.)
In addition to insurance cover, clients will also have access to a panel of experts available to assess the value of their art works.
4. International travel
To assist with their jet-setting lifestyle, annual insurance cover for both business and leisure travel can be taken out for the whole family. The cover will include medical assistance and concierge assistance services anywhere in the world.
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