Market and Economic summary In March both market and news headlines were dominated by the war in Ukraine. Developed markets were quick to introduce sanctions against Russia and individuals linked to Putin. During the month, markets tried to digest the impact that sanctions would have on both companies and economies worldwide. Most market participants questioned the impact that higher commodity prices (oil and wheat in particular) would have on inflation as well as global growth expectations. The next point to ponder was how central banks would react to the changing landscape. Global equity markets remained volatile and ebbed and flowed on the news being reported from Ukraine. The US Federal Reserve (Fed) approved a 0.25% rate hike - the first increase since December 2018. Fed officials also signalled an aggressive interest rate hiking path ahead in a bid to control inflation expectations.
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![]() Breaking up is hard to do – but not in the case of your insurance company. You can switch insurance to whichever company you want, whenever you want. It should never be difficult or ‘wrong’ to change insurance companies. You might want to hold out for a no-claims bonus or think that your loyalty will be repaid with lower premiums, however if you feel that your insurance provider no longer has your best interests at heart, it might be time to move on – no matter what time of year or at what point of your policy term you are. What is a policy and what is a term? Remember that short-term insurance is different from things like medical aid and life insurance in that it doesn’t impose blackout periods or conditions which stipulate when you are allowed to claim. You are 100% covered on your car, home contents or buildings from day one. You don’t get more covered as time goes by. If you pay premiums on a month-to-month basis, you can simply notify your insurer that you want to cancel your policy (your contract). That’s it – simple as that. They may try to woo you with reduced premiums but you are under no obligation to accept their offer. It doesn’t matter if you’re approaching your renewal date or if you are in the middle of your policy term (mid-policy or mid-term). If you’ve paid for a whole year in advance – i.e. for a 12-month term/duration – and you cancel halfway through this period, your insurance company will pay back your premium on a pro rata basis. The only reason why they won’t pay you back is if you’ve claimed to the value of the maximum insured amount. Tip: Remember that all insurance companies look at your claims history to determine your insurability as a client so if you’ve made a lot of claims during your term, a new insurance company might charge you a higher premium than your existing provider. A poor claims history, a previous insurance policy cancelled by the insurer due to excessive/ fraudulent claims and a high risk profile (e.g. geographical location or high performance vehicle combined with an inexperienced driver) are all reasons why you may be refused insurance. Reasons to switch insurers Here are a few common reasons why people decide to call it a day with their insurance company. Have a look to see if any of these apply to you and if it’s time to get a new quote:
Opportunities to relook your insurance Even if you are not unhappy with your current insurer, it might be a good idea to review your cover if: You recently got married or divorced, and you are restructuring your assets, responsibilities and finances. You want to add or remove a driver who no longer lives with you – e.g. a student child who has moved or a child who just got their driver’s licence. You’ve bought a new car or home, or a lot of new and expensive tools/furniture/electronic equipment. You’ve just welcomed a new dog into your home and want to raise your liability cover. You’ve changed jobs and want to update your mileage or where the car is parked, for example. Things to remember before changing Before you make a decision to switch insurers, be sure to compare the extent and limits of cover to your existing policy and check your new policy for excess fees. The deal you are getting may not be as great as you think if you discover that your new insurer offered you a much lower premium at the expense of your type of cover and insured amounts. If you would like us to review your current insurance and cover please contact Marizka in our Short-term department email [email protected] (011)658-1333 Source: Santam In partnership with Morningstar: Looking at the year-to-date performance of markets, the ride has been anything but smooth. Inflation, higher interest rates, and the Russian invasion of Ukraine top the current list of investor concerns at the moment. In partnership with Morningstar: On the South African front, the local equity market and the rand have been incredibly resilient. The FTSE/JSE All Share Index is up around +2% year-to-date (as at 28 March 2022) and the rand has strengthened by roughly 9% against the US dollar since the start of 2022. Across the globe, inflation and interest rates are heading one way and that is up. With ongoing global uncertainty and volatility, South African investors are left wondering what the implication of this global turmoil could be on their investments locally. In partnership with Morningstar: To quote the legendary Warren Buffett, “the investor of today does not profit from yesterday's growth”. As much as we have all heard the disclaimer on every investment advertisement that past performance should not be seen as an indication of future returns, many investors still switch to the latest hot offerings just before the inevitable slump in performance. In partnership with Morningstar: The father of value investing, Benjamin Graham, is quoted as saying that “in the short run, the market is a voting machine but in the long run, it is a weighing machine”. This advice is particularly appropriate in the current environment where markets appear especially interested in short term asset price movements and less focused on longer term fundamentals. Market and Economic summary Global equity markets continued to struggle in February as market jitters around US inflation continued to drag markets lower in the first two weeks of February. As concerns of Russia invading Ukraine became a reality in the third week of February, markets moved into a sharp risk-off trade. This meant that money flowed out of emerging markets (EM), anything Russian or linked to Russia and into perceived safe-haven assets such as US treasuries and gold. This drove bond yields lower towards the end of the month and led to EM currencies weakening. Despite the recovery in developed market bonds towards the end of the month, global bonds ended the month lower. There was little room to hide in global markets in February however the two areas of the market that weathered the storm were global energy and materials. |
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