Johannesburg, 15 April 2014 – RMB Structured Insurance Limited (RMBSI) has added to its portfolio a new specialised Underwriting Management Agency (UMA), Commuter and General Underwriting Managers Pty Limited (Commuter & General) that will cater specifically to the South African taxi industry. The UMA has been formed by Derek Vermeulen who has been providing insurance options to the taxi industry for 29 years. Additional benefits for taxi drivers and in particular their passengers will form part of the unique offerings that Commuter & General aims to deliver.
According to Derek Vermeulen, the major shareholder of Commuter & General, “A large portion of taxis on our roads are not insured. At best approximately 50 000 of the 200 000 units that we see every day remain insured for any meaningful period during the operating life of the vehicle. This creates an undesirable situation in which taxi owners are assuming risk as they are no less vulnerable to vehicle theft, damage or liability to third parties through daily use, this while also posing a risk to taxi passengers. We intend rising to the challenge of bringing a suitable innovative product to the market that will address this vital shortcoming.”
Steve Smith, Head of RMBSI’s UMA division adds, “Insurance is not meant to be a burden. At RMBSI, we appreciate that the taxi industry operates under tremendous pressure – being vulnerable to market conditions and working with tight margins. For this reason, Commuter & General will offer brokers policy options that can be tailored in a meaningful way to meet a taxi owner’s needs.”
“Partnering with entrepreneurial underwriters to create niche insurance businesses in the RMBSI Group, we have a deep understanding and appreciation of how the UMA model can outperform more traditional distribution channels and provide a far superior offering to brokers and end-clients. For ambitious UMA’s focussing on growth, we assist with taking these businesses to the next level by finding and unlocking new growth opportunities and improving profit margins by maximising the UMA’s ability to share in underwriting profits. We will assist to identify and execute ways of boosting the UMA’s business, be this through increased market share in existing markets, product diversification, geographic expansion or even acquisitive growth,” adds Smith.