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Tough Times Ahead

Published on: 09 January 2015

René Otto, MiWay CEO, said the (financial) industry faces challenges such as tough economic conditions in the country that leads to consumers lapsing policies and/or defaulting on premiums.

He said this is turn, leads to losses when claims are rejected due to non-payment of premiums and strong competition in the market also leads to downward pressure on premiums and profits. Otto indicated that regulatory change, especially the volume and pace thereof, puts pressure on resources. However, he said, all these factors could lead to consolidation in the market through acquisition.

- as published in COVER magazine, 1 Jan 2015 p17 (www.cover.co.za/)