Basing the cost of car insurance on how far you drive can save people money
and help the environment, a study says.
An analysis by the Institute of Actuaries of Australia found there was a
potential saving of $3.2 billion per year if the cost of maintaining a vehicle
was more closely linked to the number of kilometres driven.
One way of doing this was through pay-as-you-drive (PAYD) insurance, where
the cost of the policy was based not only on the usual factors - driver age,
gender, location and vehicle type - but also on how much the car was
used.
The only provider of PAYD car insurance in Australia is Real Insurance,
which has been in the market for about 12 months and sells insurance in
5000-kilometre blocks.
Real Insurance chief executive Roger Grobler said more than half of policy
holders purchased the minimum 5000-kilometre option.
"If you're not using your car, you can't be involved in an accident," Mr
Grobler said on Friday.
"The more you drive, the more the probabilities are of you being involved
in an accident and the more your insurance should cost.
"Traditional insurance just doesn't work that way."
The Institute of Actuaries of Australia said the $3.2 billion annual saving
- which equated to about $304 per vehicle - did not only flow to motorists in
the form of lower insurance costs.
Cities and governments also benefited as fewer cars on the road meant fewer
accidents, less congestion and reduced demand for road maintenance, as well as
cleaner air through less pollution.
The findings were presented at the institute's biennial convention in April
this year.
"Australians drive too much because much of the costs of driving are not
paid directly by the driver or owner," the institute's Colin Priest said in a
presentation at the convention.
"We estimate Australians will drive seven per cent fewer kilometres if
Australia switched to PAYD."
Mr Grobler said a very small reduction in the extent to which people used
their cars would have a "massive impact both for individuals and for
society".
A financial analyst at Canstar Cannex, Joshua Zenas, said those with PAYD
insurance had to keep track of how many kilometres they were logging.
"You need to be exactly aware of where you stand and how many kilometres
you are left with," Mr Zenas said from Brisbane on Friday.
"That extra burden is there on a driver."
Mr Zenas said those who were not heavy drivers could potentially benefit
financially from the PAYD method.
"There is a substantial level of savings based on the type of driving you
do," Mr Zenas said.
Some PAYD providers overseas used annual odometer checks or installed a
device in cars to keep track of driving distance, but Mr Grobler said Real
Insurance did none of these things.
"It's based on a trust principle, there's no monitoring," Mr Grobler
said.
Mr Grobler said PAYD insurance was available in the US, Canada, Japan,
South Africa, India and parts of Europe.
The average motorist drives about 14,600 kilometres annually, according to
figures from the Australian Bureau of Statistics.
source: www.smh.com.au
“Aussie John” Symond, the man who made a fortune swearing to keep mortgage lenders honest before selling a third of his company to a bank, has moved into the direct life insurance market.
Aussie Home Loans is marketing the phone-accessed life, funeral and accident products as an agent for the South African-based Hollard Group.
Mr Symond, the Chairman of Aussie, has pledged to help put Australians in a “better place” for their financial needs, quoting “alarming” research that shows only 40% of the population carries life or disability cover.
Competitors in the burgeoning direct life market include Hollard’s own Real Insurance brand, Allianz, Tower Australia’s Insurance Line and Once Life, which is backed by the Singapore-based Yanlord property group and underwritten by Commonwealth Bank-owned St Andrew’s Life Insurance.
A report released in April by Rice Warner Actuaries says Australia’s direct life insurance market represents about 8.2% of annual risk premiums and is relatively underdeveloped by international standards.
It sees direct products and direct distribution as a key growth area for life companies in the next few years.
“While marketing and distribution costs are high, direct products do not have to compete as aggressively in terms of price and features, and the financial services reform requirements are far less onerous,” the Rice Warner report says.
Aussie, which sold a one-third “strategic stake” to the Commonwealth Bank in August last year, has foreshadowed a move into the general insurance market later this year.
Source: www.insurancenews.com.au
Exigen Insurance Solutions, the specialist in rapid implementation of new business initiatives and products for insurance, today announced that Celent, a leading research and advisory firm focused on insurance technology strategy, has awarded Exigen client Real Insurance, a division of Hollard Australia, a 2009 Model Carrier award for product innovation and speed to market of its world-first, "trust-based" pay-as-you-drive (PAYD) product. Awards were presented at the 2009 Celent Model Carrier Summit, January 29 in New York City.
Exigen Insurance Solutions’ Lifecycle Management suite for policy administration, billing and claims operating on the Exigen Insurance Business Process platform enabled Real Insurance to rapidly design, test and launch an industry-first PAYD product into the Australian market.
The award recognizes carriers cited in the Celent Model Carrier 2009 report. The report offers some key best practices in the effective use of technology that a "model carrier" would use, says Celent. Twenty carriers were selected from nominations solicited from over 100 carriers and 50 vendors. Real Insurance’s PAYD initiative was chosen "in part because of the innovative nature of the product and the quick time to market achieved through a phased implementation," says the report. Real Insurance is cited for achieving the tight coordination of all parties required to take the project "from conception to market in a rapid nine months, including integration with its own direct e-commerce channel."
"Developing innovative products and employing new technologies and business processes is a hallmark of the Real Insurance and Hollard brands," said Roger Grobler, managing director, Real Insurance. "In addition to working as a technology partner providing Real with a highly configurable and truly best of breed solution set with which to build the PAYD product and processes, Exigen Insurance Solutions also contracted with us as a business partner sharing the risk and reward to ensure rapid and successful time to market. Since our July 2008 launch, sales results have exceeded expectations and continue to increase month-over-month."
"We salute Real Insurance as an example of a carrier using technology and business partnerships in a highly strategic way," said Gwen Spertell, CEO, Exigen Insurance Solutions. "The Exigen Lifecycle Management suite’s flexible service-oriented design is helping carriers like Real Insurance to quickly roll out new products or enter new markets and distribution channels. We look forward to working with Real supporting their business expansion with innovative insurance product lines and channels for the Australian market."
(Source: Exigen Insurance Solutions)
Real Insurance, which launched Pay As You Drive™ car insurance into the Australian market this year, has been awarded Australia’s Cheapest Car Insurance award by Money Magazine.
Every year Money Magazine selects the Best of the Best financial products with research conducted by independent research company, Cannex. In judging the car insurance category,Cannex took into account average premiums on 3 different makes and models of vehicle priced between $40,000 and $70,000, and used male and female drivers between the ages of 30-40 across five states
A spokesperson from Money magazine said: "In these tough times consumers need to reduce costs wherever they can and shopping around for car insurance is a must.
"Money magazine is pleased to be able to recognise and reward the best products and services – particularly at a time where it's so critical for consumers to rein in their spending."
Says Roger Grobler, CEO of Real Insurance: "We wanted to give Australian’s a fairer go when it came to insuring their motor vehicles. Why should motorists who travel less than the average for their age, gender and area have to pay the same as motorists travelling two, three or four times as much".
"For example, someone travelling to the train station and back everyday should pay less than those travelling into the city and back everyday - they are less of an accident risk, they cause less wear and tear on our roads and their emission footprint is lower. These motorists should have access to an alternative way of insuring their cars while still maintaining the same level of comprehensive cover".
"Pay As You Drive™ offers a robust, comprehensive motor insurance product but motorists only pay for the kilometres they plan to travel".
"It’s ideally suited for people who drive to and from the train station, work close to home, and maybe use their car a bit on the weekend or for those who have a second or third car".
"Anyone driving less than the average for people with the same insurance profile could pay less than ‘traditional’ comprehensive car insurance."
Pay As You Drive™ has partnered with Greenfleet, a government approved greenhouse gas reduction initiative to offer motorists the option to offset their car emissions with a one off tax deductible donation which will assist in the planting of trees.
PATCHED-up pooches are racking up medical bills of up to $14,000.
As Australia's biggest private health insurer, Medibank Private, branches into the burgeoning pet market, new figures reveal the lengths to which owners go to save their four-legged friends.
A five-year-old fox terrier called Cricket received $13,525 worth of treatment to repair broken bones, a ruptured spleen, bleeding and inflammation of the lungs after plunging off a cliff.
And six months of chemotherapy for Harry, an 11-year-old labradoodle with cancer, cost $5371.
These were the biggest claims paid by the nation's largest underwriter of pet insurance, Hollard Insurance, last financial year.
Other large payouts included almost $4000 for a maltese terrier that needed a blood transfusion after suffering gastro and just over $3500 for a siberian husky bitten by a brown snake. A 13-year-old Australian cattle dog with diabetes and cataracts ran up a bill of more than $1800 for radiology, surgery and medication.
Claims for mending broken bones were the costliest made by devoted pet owners, averaging $1381.
This was followed by claims for pneumonia, which produced average treatment bills of $940, and cataracts, which cost an average $884.
Williamstown executive assistant Michelle Moore, 32, estimates vet and medicine bills for her beloved dog, Audrey, have run to about $3500 over the last 18 months.
The three-year-old cavalier king charles spaniel had a lingering ear infection last year, and five weeks ago had surgery on a knee after barrelling into a couch.
"She is a great dog . . . but she has just had a lot wrong with her," Ms Moore said.
Luckily, Ms Moore took out pet health insurance with Petsecure when she got Audrey as an eight-week-old puppy. The insurance costs
her about $400 a year, but has covered about 80 per cent of Audrey's medical expenses.
"She is like my child," Ms Moore said.
"If I had children, they'd have health insurance. I have it, so why not have it for her?
"The funny thing is I have barely claimed anything on my own health insurance."
Hollard Insurance receives about 40,000 pet claims a year under policies it underwrites for 11 companies, including Petsecure, the RSPCA and Merial Perfect Partners.
In a climate of burgeoning household budgets, hard-pressed Australian consumers now have access to a car insurance product which could significantly reduce their annual car insurance premiums. Pay As You Drive from Real Insurance, is the first insurance product of its kind in Australia whereby qualified motorists pay only for the kilometres they plan to travel.
Says Real Insurance CEO Roger Grobler: "Current car insurance pricing is inefficient and unfair. Drivers who are similar in respect of age, gender, location and driving safety record and who use their cars sparingly should not have to pay the same as their neighbour who may be driving four or five times the distance.
"The way the current car insurance system is structured means that low-mileage drivers are simply subsidizing insurance costs for high-mileage drivers.
"Motorists are changing their travel patterns to accommodate the rising cost of petrol, increased traffic congestion and strained household budgets. Environmentally conscious motorists are also cutting down on driving their cars in response to climate concerns.
"It was against this background, that we felt the time was right to offer a robust, comprehensive motor insurance product for which they pay only for the kilometres they plan to travel."
Grobler points out that Pay As You Drive is not for everyone.
Says Grobler: "Pay As You Drive works for people who drive less than average. Motorists who drive a lot are actually being subsidised by traditional car insurance, and Pay As You Drive won’t work for them.
"Pay As You Drive is ideally suited for people who drive to and from the train station, or work close to home, and maybe use their car a bit on the weekend or for those who have a second or third car.
"Anyone driving less than the average for people with their same insurance profile will pay less than ‘traditional’ comprehensive car insurance.
"We want to give these people a fair go. Pay As You Drive reflects large scale changes in motoring habits and in so doing, accommodates the changing needs of motorists," says Grobler.
Recognising that these changing motoring habits also reflect people wishing to lower their carbon footprint, Pay As You Drive has partnered with Greenfleet, a government approved greenhouse gas reduction initiative to offer motorists the option to offset their car emissions with a one off tax deductible donation which will assist in the planting of trees.
Similar insurance products overseas require their policy holders to have their cars equipped with car monitoring devices. Pay As You Drive in Australia relies on the customer reporting the odometer reading of the car insured.
Car owners should call 13PAYD (which is 13 72 93), or log onto www.payasyoudrive.com.au to find out more and how much you may be able to save
Low mileage drivers now have a new way to reduce the amount they spend on their auto premiums – one that fully protects their privacy. Real Insurance (Australia) and Exigen Insurance Solutions, Inc. today announced the successful launch of a revolutionary trust-based Pay As You DriveTM automotive insurance product that eliminates the privacy concerns and lowers the technology barriers impeding the introduction of PAYD in world auto insurance markets.
Real Insurance, a part of the Hollard Group of companies, is now offering Australian motorists a usage-based insurance product that allows them to pay only for the kilometres they plan to travel. Exigen Insurance Solutions, which specialises in rapidly implementing new business initiatives and products for insurance, served as both a business partner and a technology partner to Real Insurance.
“Motorists are changing their travel patterns to accommodate the rising cost of gas, increased traffic congestion and environmental concerns,” says Roger Grobler, Real Insurance CEO. “Against this backdrop we felt it was time to offer a PAYD product. We created the first product to not require a monitoring device by enabling customers to report odometer readings.”
“After a previously unsuccessful policy administration system installation that could not support PAYD, our search for a competent technology partner brought us to Exigen,” says Grobler. “Exigen had the complement of integrated policy administration, billing and claims solutions and a world-class team that was able to meet the challenges associated with designing and bringing to market a completely new way of offering PAYD insurance. We were fortunate to have Exigen as both a technology and business partner with a strong mutual incentive to create a market-friendly, best of breed solution.”
“TowerGroup released research in November 2007 that profiled PAYD implementation as embodying two principles of innovation insurers must consider in their future plans: be agile, and be willing to accept risk,” says Matthew Macauley, Senior Research Associate, TowerGroup. “Most legacy policy administration and actuarial systems are designed with a heavy rating emphasis on the insured vehicle year, make and model. PAYD has completely altered this to mileage driven. To adopt this type of pricing model, insurers must have systems that are agile enough to adapt to novel approaches. The systems must be designed to capture data that has never been capturted in the past. Agility is key to revolutionising pricing models. More important, having more accurate pricing models is a crucial component in attracting and retaining profitable customers.”
Trust-based PAYD differs from the current market-place PAYD systems in significant ways. Most importantly, it does not require the installation or expense of a telemetry device that communicates driver behavior and odometer readings to the insurer. As a result, it alleviates deep consumer privacy concerns that amount to a privacy penalty for those who want a PAYD product but do not want a monitoring device.
“Collaborating on a trust-based PAYD product was a perfect fit for our business model,” says Gwen Spertell, Exigen Insurance Solutions CEO. “Hollard prides itself on developing innovative products and services for customers and Exigen itself is committed to redefining how insurers and IT providers can work together in economic alignment.”
“The success of the implementation also illustrates the robustness of Exigen’s new Billing Lifecycle Management product, which needed to meet specific trust-based PAYD demands,” added Spertell. “These included high-volume customer notification via phone, web, fax and mobile device; multiple billing and payment options; and rollover miles and no claim discount functionality.”
About Exigen Insurance Solutions
Exigen Insurance Solutions (www.exigeninsurance.com), headquartered in San Francisco, specialises in rapidly implementing new business initiatives and products for insurance. Exigen Insurance Solution’s market-ready new product systems and suite of P&C business lifecycle systems for policy administration, claims, billing and account management allow clients to rapidly introduce modern, service-oriented solutions. The solutions deliver competitive advantage and business process efficiency to top 10 global and U.S. carrier clients as well as mid-size and regional insurers.
Pay As You Drive from Real Insurance, the first insurance product of its kind in Australia whereby qualified motorists pay only for the kilometres they travel, has won The Best General Insurance Product category at the Australian Banking and Finance Magazine Telstra Insurance awards.
Says Real Insurance CEO Roger Grobler: "Pay As You Drive gives people a fair go on their car insurance. We wanted to offer Australians a product which reflects large scale changes in their motoring habits and one which would accommodate these changing needs.
"We recognised that current car insurance is unfair to people who use their cars sparingly. The result is that Pay As You Drive offers people who drive less than the average for their age, gender and area to pay only for the kilometres they drive."
Grobler says that the way the current car insurance system is structured means that low-mileage drivers are simply subsidizing insurance costs for high-mileage drivers.
"We wanted to change that so if for example you drive to and from the train station, or work close to home, or you use your car a bit on the weekend, or you have a second or third car, it is likely that Pay As You Drive will save, in some cases quite dramatically, on your car insurance premiums," says Grobler.
The awards were mediated by a panel of leading insurance industry experts including former Suncorp Insurance boss, Diana Eilert, senior Moody’s analyst, Wing Chew and top UBS analyst, Ralph Butterworth.
Car owners should call 13PAYD (which is 13 72 93), or log onto www.payasyoudrive.com.au to find out more and how much they may be able to save.
Medibank Private has selected The Hollard Insurance Company and global reinsurer Swiss Re to provide life insurance products to Medibank Private’s members and customers.
After a comprehensive tender process, Medibank Private selected Hollard and Swiss Re because of their ability to precision-tailor products and provide expert support in the critical success areas of direct marketing, call centre sales, automated underwriting and policy administration.
According to Gavin Donnelly, Managing Director of Hollard Financial Services; “Our proven sales and service capability helped to set us apart. Hollard is a distribution-centric business. That means we work with our partners (which includes Swiss Re) to tailor insurance solutions rather than limiting them to a one-size-fits-all approach. This includes designing unique life insurance products for our clients. But what really sets us apart is our tried-and-tested ability to maximise sales opportunities and create superior customer experiences from our dedicated in-house call centre. This combination of services allowed us to customise a distribution and service strategy for Medibank’s branch infrastructure”.
With only 20% of Australians holding adequate life insurance cover, Medibank Private is well-positioned to leverage its strong brand and large membership base to challenge the market share of existing life insurance providers. Hollard is excited to be part of this opportunity.
Richard Enthoven Managing Director of Hollard Australia says, “The Medibank Private product will enable customers to access significant sums of life insurance without going through complicated application processes. This is especially important when you consider the state of under-insurance in Australia. We are very excited about the prospect of being able to deliver this much-needed service to the market.”
The life and permanently-unable-to-work insurance was launched on 7th October 2008.
Winner of the 2007 Australian Best Niche Insurer award, Hollard is a specialist product provider and administrator with more than 6.5 million policy holders worldwide. Hollard entered the Australian market in 1999 and has since become the partner of choice for many of Australia’s leading underwriting agencies, independent insurance brokers, financial institutions and retailers.
Hollard Financial Services specialises in life insurance distribution and policyholder administration support for medium to large retail organisations.
For further information contact Gavin Donnelly Managing Director of Hollard Financial Services on (02) 9762 8301 or visit the Hollard website on www.hollard.com.au
The Hollard Insurance Company Pty Ltd (ABN 78 090 584 473) (Hollard) announced today that it has agreed to purchase 100% of Firma Insurance Services Pty Ltd (ABN 40 101 982 110) (Firma).
Firma is a specialist taxi insurance agency offering comprehensive insurance cover for taxis.
It also arranges CTP Green Slips.
Firma has established itself as a respected player since entering the taxi insurance market in 2003.
Hollard is an APRA-approved Australian general insurer focused on developing specialist insurance businesses. Its approach includes establishing start-up underwriting agencies and purchasing existing operations.
Richard Enthoven, Managing Director of Hollard, explained his company’s entrance into the taxi insurance market and the purchase of Firma. “We have considerable taxi experience overseas and are familiar with the profit drivers. We believe the medium term prospects for taxi insurance are very good, and have been looking for the right opportunity to enter the market. Firma, with its strong customer base and experienced management, gives us an excellent platform to grow our presence”.
Jehan Sammy, Firma’s Operations Manager, added, “We are excited that Hollard has decided to back us. We view this as a real testament to the success we’ve had in building the business to date, and also in the direction we’re headed. Hollard is linked to some of the most successful underwriting agencies in Australia and internationally. With Hollard we have the backing of a local insurer who is also a partner, and we are confident this will directly translate to a superior offering for our clients”.
Hollard will be the insurer of record for all comprehensive policies issued by Firma from 1 November 2007.
For further information please contact:
Mark Fleiser – Senior Account Manager (Hollard) – 02 9253 6606
Jehan Sammy - Operations Manager (Firma) - 02 9597 2333
The country’s leading outboard and PWC distributor Yamaha Motor Australia announces a new insurance product that is only available through its national dealer network. The new product called Yamaha Marine Insurance is being launched at this year's Melbourne and Sydney Boat Shows and is a first for the Australian and world insurance market.
Yamaha Motor’s GM Steven Cotterell says, “This is a world first for Yamaha and it means we can add the final piece of the jigsaw to provide a one-stop shop for marine product, services, finance and now insurance which will help us to continue to lead the market place.”Yamaha Marine Insurance, the ultimate pleasure craft cover is designed for all boats with Yamaha marine products and including Waverunner. It is only available through authorised Yamaha dealers and Yamaha Finance Australia.
Yamaha Marine Insurance dealer benefits
Yamaha factory backed; Exclusive to Yamaha participating dealers; Only genuine Yamaha parts used for all repairs; Authorised Dealers Priority claims approval up to $2,000; Repair work referred to authorised participating Yamaha dealers; Gap cover available for a nominal extra fee including extras cover; $10 million legal liability cover on Waverunners; Full replacement of boat and Waverunner in first 12 months of registration; New for old on mechanical and electrical components of motors regardless of age; Encourages use of DataDot that provides the marine industry a much needed security data base; DataDot deters theft and increases the chances of recovery as it provides an audit trail for police and insurance companies; Insurance premium savings and tangible policy benefits passed on to clients.
Yamaha Marine Insurance owner benefitsYamaha
Marine Insurance is the ultimate in pleasure craft cover at very competitive premiums and it provides real “peace of mind” for owners. Only genuine Yamaha parts are used for repairs, dealers have priority claims approval up to $2,000 to get the customer back on the water sooner and there is nil theft excess when Data Dot DNA is applied to boat, outboard motor, trailer and PWC.
Factory badged insurance product; Pay by the month option; Gap cover available; Agreed value on Hull, motor, trailer and equipment and accessories; Lost keys cover up to $500; Death cover $30,000; Convenient YMI Membership ID card.
Yamaha Marine Insurance is administered by Nautilus Marine Insurance Agency (AFSL 227 186) and underwritten by The Hollard Company Pty Ltd (AFSL 241 436).
Yamaha Marine Insurance will be rolled out to all Yamaha Dealers around Australia throughout the months of July and August. Part of the roll out program will be comprehensive training of all sales staff in this exiting new product
This article originally appeared on www.sundaytimes.co.za
Hollard sets the standard for best of both worlds, writes Richard Stovin-Bradford.
The theory that a pleasant working environment can enhance staff wellbeing and result in greater productivity is proven by 1200 staff at Hollard’s state-of-the-art headquarters in Johannesburg.
Hollard, the country’s largest privately-owned insurance company, provides life and short-term insurance to more than six million policyholders in South Africa and internationally.
For ebullient Hollard chief executive Paolo Cavalieri, the vast expanses of glass at the open-plan offices encircling Villa Arcadia (a Herbert Baker mansion) symbolise openness and transparency.
“You can always see what’s going on and who’s meeting who. The building makes things happen naturally — its design and the energy it breeds is a stroke of luck. The first day I walked in here, I thought to myself: wow, it’s pumping.”
The impression of disarming openness is reinforced as one sits with Cavalieri shooting the breeze in the bustling Hollard café which, he says with appropriately Italianate gestures, has the best coffee in town. The blend was chosen after exhaustive tasting.
The aroma is magic, and the vibe electric. The café is abuzz with “Hollardites” sitting in brightly coloured armchairs, talking shop over their cappuccinos.
Old-fashioned face-to-face contact has clearly not been replaced by the internal telephones or e-mail.
Cavalieri enjoys good food — his parents Elsa and Cesare hail from Parma and Ferrara/Bologna respectively — and he expects his staff to do the same, saying: “The food here is good — we have one caterer who handles everything. You pay, but it’s subsidised.”
When not sitting at their desks or meeting clients, Hollardites mix their work with table football, play table tennis, hone their mountaineering skills on a climbing wall, indulge in retail therapy at the Hollard shop — or just chill out at the café.
Everything happens in the central atrium, where staff can see and be seen. It safely accommodates 1000 people if Cavalieri and his team want to speak to staff.
The Hollard shop, which sells more branded merchandise to staff than is given to clients, was doing a brisk trade. There is even an online mall for Hollardites that takes advantage of bulk-buying discounts.
As befits a family-owned business where family values are key, Cavalieri says that on Father’s Day and Mother’s Day staff are encouraged to take their folks out for a meal — at Hollard’s expense.
But it’s not all play and no work. Cavalieri said: “We take what we do seriously, but we don’t take ourselves seriously.”
Human resources head Ivan Mzimela said: “We are very hands- on people and we must be doing something right because we won all the short-term insurance awards at the recent Safsia (South African Financial Services Intermediaries Association) awards.”
For those who enjoy Hollard cuisine too much, Cavalieri says there is a fully equipped gym where “you can work off the croissants”.
He is a former national rowing champion and was manager and coach of the SA team at the Barcelona Olympic games in 1992. Naturally, Hollard sponsors the SA rowing team.
South African oarsmen Donovan Cech and Ramón Di Clemente designed the gym which has a full- time biokineticist, a masseuse and a spinning instructor. Hollard also has a wellness centre with a nurse and doctor, where staff can get anything from flu jabs to counselling on family issues.
“We look after our crew,” he said, referring both to the rowing team and his staff. “And we chose real characters to run the gym.”
As two staffers spin the handles furiously in a game of table football Cavalieri’s sporting streak, honed on the race track and the water, resurfaces: “The competitive angle is important, but winning is not the most important thing.”
There is a pause. The mischievous look in his eyes beats his tongue to it as he confirms: “But it is, really.”
As is the case at FirstRand’s investment banking core, Rand Merchant Bank, there is no oppressive culture of rules and regulations. RMB’s rule book is a sizeable cahier full of empty pages. Hollard is remarkably similar.
Cavalieri said: “We don’t have any rules about who can and can’t play, or when — it’s all about how you manage your time.”
Mzimela said: “Paolo is right, we don’t actually sit down and write rules. “Yes, we have employment policies like everyone else, and we make sure staff members realise it’s a fun place to work— but that it’s also a work environment. It’s a question of balance.”
The environment does much to attract new staff, as does its No 5 ranking in the 2006 Deloitte/ Financial Mail “Best Company to Work For” survey.
But Mzimela said Hollard’s unorthodox approach to hiring can catch people unawares: “When we hired a new IT director recently, we spent more time quizzing her on her interests and on her potential cultural fit than on her skills. She was a bit surprised.”
If he spots an outstanding candidate during interviews, he usually takes them straight to meet Cavalieri, who invariably makes himself available — his door is always open.
Cavalieri said: “We try to create an environment where people can be themselves. We don’t have an environment here where you go home and be a cross-dresser — you can be [one] here too.
“The two biggest things are to be yourself and to be transparent. We do give it a lot of importance and, through Ivan and his team and the marketing team, we are serious about our culture.”
The culture extends to the car park, where there are no allocated spaces for the bosses.
Motor racing enthusiast Cavalieri — he was a BMW factory team driver and an Alfa Romeo factory support driver in the ’80s — said: “I start my day with a handbrake turn in the car park.
“It gives me a big [thrill] and by doing a handbrake turn I’ve created a parking bay that wasn’t there before.”
Hollard sponsors — and has business partners involved in — motor racing.
In fact, Cavalieri has devised a Villa Arcadia hill-climb speed-trial, running from the entry boom to the front door — albeit not during the working week.
A well-known company routinely rated as having good staff conditions is Google, the global Internet firm. One of the top 10 reasons to work at Google is that work and play are not mutually exclusive.
Google staff have on-site doctors and dentists, massage and yoga facilities, “plenty of snacks”, and they can even take their dogs to work — or have their laundry done. Hollardites can have their dry cleaning done at work, and there are in-house cobblers and tailors for the snappy dressers — or even the cross-dressers.
You would think staff would never want to leave. But sometimes they choose to, and sometimes they are asked to leave.
But when people do leave, Mzimela and his team always conduct an exit interview. He said: “Nine times out of 10, people say they love the company.”
Enough said.