Released on = March 27, 2007, 2:09 am

Press Release Author = Shushmul Maheshwari

Industry = Media

Press Release Summary = High vehicle thievery in South Africa is putting out the
insurance industry as a major chunk as all motor claims in the country are related
to vehicle crime.

Press Release Body = Business Against Crime, or BAS, after getting a contribution of
over 1.3 Million Rand from the South African Insurance Association (SAIA) to battle
against crime, warned that high level of crime in South Africa is weakening the
spirits of both domestic and international investors. The BAS presented its views on
February 5, 2007 during a media conference in Johannesburg.

The reported cases of vehicle thievery and robberies have reduced on a YOY basis
since it touched the pinnacle of 115,557 vehicles in 1998-99. The lowest level was
recorded in 2004-05 at 96,291. The South African Police Service released its
official statistics for 2005-06 reporting a surge in the thievery of automobiles to
reach 85,964.

The rate of vehicle thievery and robbery, which is expressed as the units of
vehicles hijacked or stolen per 1,000 registered vehicles, dropped from 175 to 129
per 1,000 vehicles registered for 1998-2004. This forms a reduction of 26% in the
vehicle robbery and theft rate.

"It is very much in the interest of the short-term insurance industry that we remain
involved in combating vehicle crime. Motor insurance is our largest class of
business, with 43% of the industry's gross premium being motor. Half the net cost of
all claims paid is for motor claims. During 2004, for example, of the total value of
net claims of R15.4bn, R7.6bn was for motor claims. Approximately 30% of these motor
claims relate to vehicle crime", said Barry Scott, Chief Executive, SAIA.

According to the RNCOS report "South Africa Insurance Industry Analysis
(2006-2009)", around 43% of total insurance claims are vehicle related. Hence, the
rising instances of vehicle thievery have been a barrier for the insurance firms to
remove in terms of claims.

The market research report compiles the detailed information on market share of
motor insurance by general segment, by cell captive segment, by specialist segment,
and by bank segment with statistical data. The report also gives a radical analysis
of the South Africa insurance sector, industry performance subsuming segmentation by
product and players, with focus on property, transportation, accidental and health
insurance and other non-life insurance. Those who want to foray into the market will
find the 'opportunities, driving forces, and challenges' section extremely helpful
in understanding the insurance landscape in South Africa.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM075.htm
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Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
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info@rncos.com