1. Deanne Wood
OSTI
Presentation to the Select Committee on Finance National Council of Provinces (NCOP)
14 February 2017

2. Points of address Mission Statement and Values Introduction
Jurisdiction
Governance Structure
Statistics
Complaint Trends
Main operational areas of concern for OSTI

3. Mission Statement and Values
To resolve your short-term insurance complaints fairly, efficiently and impartially
Established in August 1989 OSTI provides consumers with a free, efficient and fair dispute resolution mechanism.
It offers consumers a “no risk” mechanism to resolve disputes with insurers

4. Introduction
Recognised under the Financial Services Ombud Schemes Act. 
OSTI is an independent office funded directly by insurers and indirectly by consumers (through payment of premiums).
OSTI acts independently and objectively in resolving disputes and is not under instructions from anybody when exercising its authority.
Insurers, who are members of OSTI, have agreed to abide by the Ombudsman’s decision. But decisions are not binding on complainants.

5. Introduction cont …
Insurers and complainants may appeal to internal Appeal Tribunal
OSTI acts as a “mediator” or informal arbitrator. OSTI does not represent either of the parties to the dispute.
OSTI’s decisions can be based on law and equity
OSTI does not give legal advice

6. Jurisdiction
The Office can assist consumers with the following personal lines short-term insurance for claims under R2million including:
Motor
Homeowners (Buildings) – here the jurisdictional limit is R4million
Household (Contents)
Cell phone
Travel
Disability
Credit protection insurance
OSTI has limited jurisdiction over Commercial Insurance (businesses with a turnover in the last financial year of less than R25 million).

7. Governance structure
OSTI’s Terms of Reference define the powers and duties of the Ombudsman.
OSTI’s board comprises
four consumer representatives,
three insurer representatives,
one representative from the South African Insurance Association (a trade association, which represents all short-term insurance companies in South Africa),
two independent directors, and
one representative from the Financial Services Board.

8. Summary of Statistics - 2016
Complaints received
14 917
Complaints opened
10 175
Complaints closed
8 631
Average
Turnaround time
91 days
Value to consumers
R90million
Calls received by call centre
71 000

9. REGISTERED CASES PER CLAIM TYPE
Complaint Trends
REGISTERED CASES PER CLAIM TYPE
Motor
Homeowners
Other
Commercial
Household Contents 711
Non claim related 303

10. Main operational areas of concern for OSTI
Consumer education and awareness:
OSTI endeavours to educate consumers
Systemic issues within industry
Free service offered by OSTI
Resources are limited

11. Main operational areas of concern for OSTI cont…
High number of complaints submitted vs number of staff employed to deal with complaints:
Approximately 1000 new complaints registered per month
Assistant ombudsmen resolve around 100 complaints per month
NPO – limited funds for employing additional staff
Persistent challenge to find the balance between resolving matters efficiently and resolving them competently

12. Thank you