The transport and logistics industry in South Africa faces an array of challenges, from road accidents and hijackings to the complexities of goods in transit. Understanding these risks and mitigating them effectively are essential.
In a recent discussion with Sid Beeton, Divisional Manager for Transport, and Nico Venter, Commercial Manager Cape Town, we explored how ONE Insurance is addressing these challenges while expanding its service offerings.
A Comprehensive commercial vehicle offering – ONE Insurance has grown from its origins in the late 1990s when Andrew Harvey acquired Absolute Underwriting Managers. Initially focusing solely on heavy commercial vehicles (HCVs) through a partnership with ABSA Insurance Company, the company has since evolved and now provides cover for all lines of business. . Today, ONE Insurance operates under a cell captive arrangement with Old Mutual Alternative Risk, enabling them to manage financials internally while making underwriting decisions independently. The company is in the final stages of obtaining its own license to write business directly, signalling further exciting growth opportunities.
With a presence in major South African cities of Johannesburg, Pretoria, Durban, Cape Town, Port Elizabeth, and Bloemfontein, ONE Insurance has established a national footprint. This widespread coverage ensures “boots on the ground” for effective claims handling and customer service and provides the backbone of its strategy to keep decisions decentralised at the local level. Local is lekker!.
A Tailored approach to transport insurance – ONE Insurance is the largest underwriter of transport risks in South Africa, with an annualised transport-related income in excess of R1.7 billion. Their product range caters to a diverse set of transport needs, from single-truck owner-operators to massive fleets exceeding a thousand vehicles. Their offerings include:
- Motor Insurance for commercial vehicles, support vehicles, and personal-use vehicles within transport businesses.
- Goods in Transit (GIT) cover, addressing risks associated with transporting cargo.
- Hazardous Chemicals (Hazchem) and Liability Insurance to cover spillage cleanup and other related risks.
- Value-Added Products, such as excess buy-downs, loss of use cover, roadside assistance, and non-accident towing.
Long-Haul vs. Short-Haul Differentiation – One key aspect of ONE Insurance’s approach is its differentiation between long-haul and short-haul transport. Long-haul operations typically present higher risks due to extended hours on the road, exposure to hijacking, and driver fatigue. These trucks often traverse vast distances, leaving depots on day one and returning only days later. With increased exposure to accidents, fatigue-related incidents, and theft, long-haul transport generally carries a greater risk.
In contrast, short-haul transport operates mainly within urban areas, where vehicles are parked overnight in secure yards. While short-haul operations face risks such as third-party claims, static accumulation exposure and environmental hazards like hail and fire, they generally present lower overall risk. ONE Insurance accounts for this by offering discounts and favourable excess structures for short-haul policies.
Managing risk through technology and innovation – Risk mitigation is a top priority , particularly in a high-risk industry like transport. Their approach includes:
- Telematics and Tracking Systems: Qualifying vehicles according to their risk matrix are required to have tracking devices linked to a recovery service.
- In-Cab Camera Systems: A partnership with Truck Assist has enabled the installation of multi-camera systems in transport vehicles. These include:
- Forward-facing cameras to capture road conditions.
- In-cab cameras monitoring driver behaviour.
- Side cameras for third-party claims and security.
- Fuel tank surveillance to prevent fuel theft.
- Fatigue detection cameras, which have been instrumental in preventing accidents by alerting drivers and fleet managers to signs of drowsiness.
- A 24/7/365 in-house Incident Management Centre that monitors and reviews every exception report generated by the Ai driven cameras which can be as many as 500 incident reports during a night shift, primarily being fatigue incidents.
As part of its offering, ONE Insurance offers rebates to clients for the installation and monitoring of these systems, sometimes covering up to 100% of the costs.
The role of specialist brokers in Transport Insurance – ONE Insurance operates exclusively through brokers, with a strong preference for those specialising in transport insurance. The transport industry demands 24/7 support, requiring brokers with in-depth expertise who can assist clients at any time. While the company’s Incident Management Center (IMC) helps brokers handle emergency situations—such as vehicle breakdowns, pollution control, and cargo recovery—most transport insurance still requires specialised knowledge.
Transport insurance is like agribusiness; you are either a specialist or not. If you dabble in it, you can come unstuck due to the complexity and high risks involved – Sid Beeton.
For brokers, ONE Insurance provides significant support, including training on risk management, access to driver training programs, and integration with telematics solutions. Their proprietary OneWeb system gives brokers real-time access to data, helping them analyse trends, assess risks, and make informed decisions for their clients.
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Growth in Goods in Transit Insurance – While ONE Insurance dominates the transport motor insurance market, they see room for growth in Goods in Transit (GIT) coverage. The company aims to strengthen its market presence in this segment by offering standalone GIT policies as well as integrated transport solutions.
Additionally, ONE Insurance’s composite approach allows clients to bundle multiple insurance products under a single policy number, simplifying administration while providing comprehensive coverage. This flexibility enables them to cater to transport businesses that require more than just motor insurance, such as liability, theft, and property coverage.
ONE Insurance’s commitment to risk management, technological integration, and specialised broker support sets them apart in the South African transport insurance industry. By differentiating between long-haul and short-haul risks, leveraging advanced telematics, and working closely with brokers, they provide tailored solutions that address the unique challenges of commercial transport.
As they continue to expand into new insurance segments and refine their product offerings, ONE Insurance will continue focusing on innovation to ensure that transport businesses across South Africa receive the best possible coverage and support.