Outsurance offer

[ians]

Outsurance are offering all your premiums back if you don't claim in 15 years, what do you the chances are they will still be in business in 15 years time.

[Dave A]

what do you the chances are they will still be in business in 15 years time.

Probably pretty good. It's a very shrewd offer...

...as in the big winner will be Outsurance - for sure.

[Dave S]

I haven't yet heard of an insurance company that didn't cover their own bank account, so somehow Outsurance is still going to make a killing, besides, what are the chances you are going to drive on South African roads for 15-yrs without even a minor incident?

[ians]

It is simple you pay a premium every month which is invested, like you would a life insurance policy, except there is no claim so they cant loose, they pay you out what you put in only excluding interest, chances are in a 15 year investment the interest will be lot more that what you put in. Someone at outsurance must have seen the huge benefits from their no 4 year no claim bonus and decided it is a no brainer.

They use the best assessors in the business and get out of millions of claims, which seems to be the norm nowadays, with the new most common clause I hear, "no claim due to a lack of maintenance" or the old ones, the excess is so high it is not worth claiming or the best old one, if you claim you know your premium with compensate for the claim in the future when it gets increased.

[wynn]

Well remember if you don't claim you are not dead. if your relatives do claim, it is because you are dead.
after fifteen years of staying alive you at least get your contributions back, better than a kick in the pants provided the installments are reasonable.

[Justloadit]

Most life policies include a savings portion, which you can claim at any time. Outsurance is simply rewording this.

I wonder how they would repudiate your benefactors in the case that you die with in the 15 year period?
mmmm Because you gave no notice or your intention to die before the 15 year contract, your claim is repudiated, or something along those lines

[IanF]

Google insurance float and see how Warren Buffet analyses it and makes a fortune from it.

Since our float has cost us virtually nothing over the years, it has in effect served as equity. Of course, it differs from true equity in that it doesn't belong to us. Nevertheless, let's assume that instead of our having $3.4 billion of float at the end of 1994, we had replaced it with $3.4 billion of equity. Under this scenario, we would have owned no more assets than we did during 1995. We would, however, have had somewhat lower earnings because the cost of float was negative last year. That is, our float threw off profits. And, of course, to obtain the replacement equity, we would have needed to sell many new shares of Berkshire. The net result - more shares, equal assets and lower earnings - would have materially reduced the value of our stock. So you can understand why float wonderfully benefits a business - if it is obtained at a low cost.

Link to an article but as with everything the devil is in the detail.