Not all risks can be prevented from occurring but we can at least provide some form of financial security through strategic risk management.

A great advantage of insurance is that it spreads the risk of a few over a large group of people exposed to risk of a similar type. It reduces financial distress and chances of default in company’s operations hence allowing business continuity (providing financial protection against loss occurring as a result of an uncertain event eg fire or theft)

The concept behind insurance is that a group of people /companies exposed to a similar risk come together and make contributions towards formation of a pool of funds.

These are collected by insurance companies in the form of premiums. In this way the applicant will be substituting a small certain cost/loss (premium) for larger uncertain loss/cost due to fortuitous events.

Rip-off

Contrary to some common perceptions, insurance is not a rip-off.

For most people, it is a necessary and valuable financial service especially to those who own valuable assets/ properties that will be very hard to replace without facing severe financial hardship.

In general, think of insurance as “hardship avoidance,” not “convenience” or “hitting the jackpot.”

Having taken cognisance of the current credit crunch and world recession that has partly affected our economy the insurance sector has crafted insurance packages that ensure continuous and comprehensive covers.

These packages are designed for all sectors including manufacturing, construction, tourism, finance, agriculture, health and all other complementary service providers.

Our economy has been improving, albeit at a slower pace than anticipated. The improvement has been a result of the introduction of the multi-currency system.

Monthly contracts

As an industry, we are alert to the fact that cash flow and liquidity are major challenges to both individuals and corporates. In response to this, we have moved from the traditional annual premiums, to quarterly and monthly contracts.

Everyone is urged not to limit risk assessment to what one sees, but familiarize with all the risks that can affect your surroundings, including people.

When we think about ‘risk’ we often relate only to those things that are highly dangerous or hazardous, but in reality we deal with risk everyday.

Driving to work, investing in the market or starting a new project, are all examples of risk.

Each of these examples has various degrees of perceived danger or associated hazard. We rarely take into consideration all the risks associated with any given task or the possible impact such risk may have on the anticipated result.

With the available expertise in the insurance industry, we are able to continuously reduce the cost of insurance without compromising the value.

Remember, what you don’t know about insurance both on a business or personal level can cause tremendous distress.