Cum Laude Graduate’s Research Provides Insight into the Insurance Industry
The insurance sector plays a vital role in supporting a sustainable South African economy.
Ms Ugeshnee Veerasamy Moodliar, who was awarded her Master of Business Administration (MBA) cum laude, explored the factors that affect lapse rates in the short-term insurance industry. The study, which was supervised by Professor Mihalis Chasomeris, investigated the policyholder features that determine short-term insurance lapse; the macroeconomic variables that influence such and how short-term insurers manage the lapse.
‘The findings from my research indicated that product type, gender, cluster group, policy duration and sum insured have a statistically significant influence on lapse rate. However, the macroeconomic variables examined were found to exhibit a weak significant correlation with short-term insurance lapse rates,’ explained Veerasamy Moodliar.
‘Recommended approaches to mitigate lapse rate include strategies to retain customers and those that could be applied during the development phase of short term insurance policies. The study will be beneficial to industry stakeholders such as financial intermediaries, insurance underwriters and administrators. It also adds to the current body of knowledge on short term underwriters and the modelling of insurance lapse rates,’ she added.
As a Revenue Manager at Talksure Pty Ltd, an independent financial services provider, Veerasamy Moodliar said that completing the degree will enhance her career prospects.
‘I was pregnant while completing my dissertation; however, I did not compromise on the quality of my studies or my work. My positive approach enables me to deliver a high standard of service to any given task. This has resulted in numerous nominations and awards during my career. Most recently, I received a performance excellence award for my work achievements while also balancing my studies and pregnancy. This qualification will boost my opportunities for career growth and prepare me for a more senior management role.’
Words: Thandiwe Jumo