Destiny finance trading as Diaspora Insurance LTD is regulated and authorized by the Financial Conduct Authority (FCA) under Firm Reference Number: 795897. It is also a member of the UK Financial Services Compensation Scheme (FSCS) which is an independent and free service scheme, protecting consumers when financial firms fail. In addition, Diaspora Insurance is reinsured by one of the biggest reinsurance companies called Africa RE, FM Re and is underwritten by Guardrisk Life International Limited.
In essence, YES, your premiums are protected through the following platforms:
- Financial Conduct Authority (FCA)
- UK Financial Services Compensation Scheme (FSCS)
- Guard Risk Life International LTD(Underwriting)
- Africa Re & FM Re (Reinsurance)
- How Premiums are protected through FSCS
1)Funeral plan provider claims
If your funeral plan provider goes out of business, it should have arrangements in place to ensure that a new regulated provider can take over your funeral plan. Alternatively, it may provide you with compensation. If these arrangements aren’t in place, the FSCS will protect plan holders of authorized funeral plan providers that have failed. The FSCS works with the failed firm, the FCA and the insolvency practitioner (IP) to ensure that they have the information they need.
2) Replacement funeral plan
Where possible, the Scheme will seek to give you the option of entering into a new contract with a replacement regulated funeral plan provider. It would be a like-for-like replacement plan with the same terms as your original plan. Where that’s not possible, it would have terms as similar as possible to the original plan, before completing the process, the client will be asked if they want to receive a replacement cover. If they don’t, they can choose to receive compensation for the plan instead.
If the policyholder would rather receive compensation, FSCS will calculate the amount by reference to what it would cost to buy the same plan on today’s market. If the FSCS cannot arrange a replacement funeral plan, they will then pay the policy holder compensation on the same basis. Compensation limits for all types of funeral plan claims, are protected up to £85,000 per eligible person, per firm. If the client chooses to receive compensation, FSCS will calculate the amount by reference to what it would cost to buy the same plan on today’s market.
- How Underwriter is protecting Premiums
Underwriting is the most important function in the insurance world. It is the process through which an individual or institution takes on financial risk for a fee, in this case, Guard Risk life International is there to determine the level of risk involved and calculate the amount of premium to be paid.
Roles of Underwriters
- Centralizes the risk management function in group structures and allows for the sharing of risk within the group.
- Reduction in the cost of conventional insurance.
- Allows companies to retain risk and share in the profit potential of an integrated risk management Programme.
- Access to direct insurance and reinsurance markets (local and international)
- A selection of investment instruments to enhance returns and increase capacity.
- Flexibility to create a Customized insurance to respond to client-specific risk exposures.
- Access to a comprehensive corporate risk financing tool.
- Budgeting certainty in that the cost of risk can be determined more accurately.
- Actuarial input on appropriate cell risk retention.
- How reinsurance is protecting Premiums
Reinsurance, in layman’s terms is “insurance for insurance companies,”. It is a contract of indemnity between a reinsurer (FM Re & Africa Re) and an insurer (Diaspora insurance). In this contract, diaspora insurance transfers risk to FM Re and Africa Re the idea is that no insurance company has too much exposure to a particularly large event or disaster
Purpose of reinsurance
- expanding the insurance company’s capacity.
- stabilizing underwriting results.
- providing catastrophe protection.
- withdrawing from a line or class of business.
- spreading risk; and
- acquiring expertise
What is Premium?
An insurance premium equates to the money that is paid by any person or company/business for availing of an insurance policy. The insurance premium amount is influenced by multiple factors and varies from one payee to another. It is Paid monthly, quarterly, Semi-annually and or annually.
Diaspora insurance premiums are determined by age and amount of cover. NB Premiums do not change, you maintain the same premium you agreed at inception up until the age of 85 years where you stop paying and qualify for free cover for the rest of your life. One of the CF, we consider that our clients will not have any source of income at that age so instead of worrying about premiums you enjoy your retirement.
Mode of payment
Direct debit– it’s an arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed dates, typically to pay bills. The direct debit dates to choose from are 1st ,8th, 15th,22nd and 28th This gives our clients different option dates and enforces our culture of Treating Our Customers Fairly.
Bank transfer– A bank transfer is simply the direct transfer of funds from one bank account into another. This transfer of funds can be between two different UK banks or between two accounts held with the same UK bank. International bank transfers can also be completed between two banks from different countries or territories.
Standing order- an instruction or prescribed procedure in force permanently or until changed or cancelled
Inconclusion, it is important to join an insurance company that is regulated and authorized. The risk of collapsed unregulated Burial Societies are vastly, Hence Diaspora Insurance is giving its clients peace of mind by abiding by the law and protecting its consumers .