CAMARGUE COMMERCIAL CRIME

Presented by Justin KeevySenior Underwriter

SUSPECTS

• Most common suspects

• Where did all the money go?

• Sentencing

• Recovery

MOST COMMON LOSSES

• Stock Theft (Manual Invoicing) (Cycle Counting and Collusion)

• EFT Transfers

• Cash Theft

• Debtors (Rolling)

• Payroll (SARS) (Ghost Employees)

• Cheque Fraud

• Cyber Crime (Syndicates)

• Corruption

• Change of Banking Details

• Retail (Credit Cards) (Returns) (Cash)

LET’S FACE THE FACTS

• Estimated loss to an organisation as a result of fraud = 5% of annual revenue

• Estimated that corporate fraud costs SA economy R150Bn annually

• Employees biggest perpetrators (47%) in Africa, average loss due to fraud is R400,000

• From 107 cases analysed in Africa, more than 20% of cases resulted losses of at least US$1m (ZAR 9,68 million)

• +/- 50% of organisations do not recover any losses suffered due to fraud

COMMON PROBLEMS WITH MULTIMARK FG

• Unidentifiable Employee Clause

• Complicated deductible structures

• No collusion with third parties

• Cover only for Insured’s money and Property

• Third party computer crimes not addressed

• Insured required to prove intent of employee theft (personal financial gain / intent to cause the Insured a loss)

• Restrictive methods of theft

OVERVIEW OF COVER

WHAT IS COVERED?

• Theft of the company’s property by employees

• Includes Care, Custody and control

• Money and any other property

• Third party collusion

WHAT IS COVERED?

• Theft by employees (continued)

• Identifying guilty employees not required

• No restrictions on the method of theft

WHAT IS COVERED?

Extortion

• Committed by employees or third parties

• Threatened violence to commit theft

Fraudulent Transfer Instructions

• Employees or third parties

WHAT IS COVERED?

• Computer Fraud

• Hacking

• Use of viruses

• Employees or third parties

WHAT IS COVERED?

• Contractual Penalties

• Contractual liabilities arising out of

• Theft by employees

• Computer Fraud committed by non-employees

SUMMERY OF THE THEFT COVER

Type of Theft Employee Others

Computer Hacking/Virus Covered Covered

Fraudulent Transfer Instructions Covered Covered

Extortion Covered Covered

Other/Ordinary Theft Covered Not covered

MORE ABOUT THE COVER

Policy covers malicious destruction of data, including

• Alteration or destruction of data

• Care, Custody and Control

• Destruction of media

• Computer programs

• Physical records, if damaged as a result of theft

EXTENSIONS

• Costs of recovery of uninsured loss

• Reinstatement of office records

• Claims preparation costs

EXTENSIONS

Legal fees

Automatic Reinstatement

FIDELITY GUARANTEE COMPARISON

Commercial Crime v Fidelity Guarantee

Insured EventCommercial Crime

Fidelity Guarantee

Employee Dishonesty Covered Covered

Computer Fraud (incl. third parties) Covered Not covered

Electronic Data Loss Covered Not covered

Computer Virus Covered Not covered

Extortion Covered Not covered

Commercial Crime v Fidelity Guarantee

Insured EventCommercial Crime

Fidelity Guarantee

Contractual Penalties Covered Covered

Fraudulent Transfer Instructions Covered Not covered

Unidentifiable Employees Covered Not covered

Claims Preparation Costs Covered Optional

Insured EventCommercial Crime

Fidelity Guarantee

Costs of Recovery Covered Optional

Reinstatement of Office Records Covered Optional

Automatic Reinstatement Covered Not available

Commercial Crime v Fidelity Guarantee

Camargue Commercial Crime Risk Management Services

WHISTLE BLOW HOTLINE

RISK MANAGEMENT HOTLINE

• Risk management hotline

• Fraud risk surveys

My employees will never steal from me”

“My employees will never steal from me”

72% are going to change their mind

MEDICAL ESTABLISHMENTS LIABILITY

Professional Indemnity

• Cover does include:

- Breach of professional

duty

- Defamation

- Breach of warranty of

authority

- Infringement of

copyright

- Loss of documents

(not money)

CLINICAL TRIALS POLICY

• What is a clinical trial?

A research study that uses humans to test

safety, quality, effectiveness and efficacy of new or

existing medicines, medical devices or treatment

options

• What does a clinical trials policy cover?

This policy covers medical research companies

for the compensation they are obliged to pay people

who suffered harm as a result of participating in

their medical research.

CLINICAL TRIALS POLICY

• Cover is provided on a no-fault basis

• Some significant exclusions

- Existing injuries

- Genetic injuries

- Genetic engineering

- HIV/AIDS if the trial is for those drugs

- Participants deliberately contravening

protocol

- Invasive methods, although some are

covered

- Claims from USA/Canada

Thank you