Summary:The Cyril Ramaphosa as the next candidate for

Summary:The news article published by Business Live on the 22nd January 2018 mentions the fact that the Rand has strengthened to the dollar, based on the mention that the current president Jacob Zuma should step down earlier than expected. That the decision can have many positive factors, but the main one being the strengthening currency.Point of View on Article:Based on the article, it appears that foreign investors and countries do not have trust in the current president. And this has led to our countries economy and currency strength to head on a steady decline. With the election of Mr. Cyril Ramaphosa as the next candidate for presidential election – our rand had seen an incline in value. Amongst other changes, he has made – shuffling cabinet and dismissing parties that benefited from corrupt behaviors. It has re-instilled the belief and trust in our country and that has prompted foreign countries to gain interest in us again and to potentially invest in our country. This is a positive thing, as more investments could lead to more companies from abroad that open their doors within South Africa. And this will also decrease our unemployment rates. A strengthening Rand means that the cost of living, in turn, would also reduce, as we would pay less for fuel and food. As it would not cost as much to import or move around from one supplier to the other. Allowing for consumers to invest revenues in other assets or avenues.Impact on Short Term Insurance Providers:Should the rand’s strength increase to the projected R11.00 to the American Dollar, we could see the cost of living reducing. Consumers could look to purchase more assets, such as buildings and vehicles. This would mean more bonds and loans would be taken out to finance these assets.With the assets being acquired, most financiers would require of the clients to source insurance or take the insurance product that they have available. This would lead to an increase in sales for the short term insurance providers – they would then be able to employ more people to assist the clients with sales, and also with general client queries. The negative of this would be, that the more assets the clients can afford to purchase would also lead to an increase in claims. If there are more vehicles on the road then we would potentially see an increase in claims. The more homeowners there are, there may be more claims submitted for geysers etc. And if it gets too expensive for them they may, in turn, cancel profiles with their current insurance providers, and source cover elsewhere.But for the most, I do foresee it having a positive impact on short-term insurance providers. Impact on Career:With a strengthening rand, and more assets and businesses opening up. There would be more opportunities offered for one to grow within an industry. You could even venture into opening up your own brokerage, to provide services and products to an expanding market.


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