About Investsure

What is Investment Fraud Insurance?

Investment fraud insurance offers protection to you in the case that there is news relating to management committing fraud, deceiving or otherwise misleading shareholders, which results in the share price dropping significantly. The objective is to protect innocent shareholders against realized losses in share prices which arise from such news. The product was developed in response to ever increasing discovery of management fraud, where shareholders are ultimately the ones who lose.

InvestSure is a product of Compass Insurance Company Limited, a licensed Non-Life Insurance Company and Financial Services Provider, FSP number 12148.

Is this a complicated product?

No, this is a simple insurance product.

  1. The product is easy to understand, it protects shareholders from unexpected losses in the share price due to management committing fraud or misleading shareholders.
  2. To insure your shares is as easy as clicking on the buy option when you purchase shares. If you have current shares that you want to insure the process is very easy, all you need to do is select the shares you want to insure and select insurance to complete the process of ensuring your shares are protected.
How is InvestSure different from normal insurance?
  1. Investment Fraud Insurance is an insurance product; however it covers a previously uninsured asset of great importance - your shares. We are however doing things very differently:
    • No need to fill in any forms or submit any documentation. We collaborate with our partner trading platforms to provide you with an easy way of insuring your shares.
    • You don’t have to go through a process to claim, all information is directly exchanged between your trading platform and InvestSure making claims easier than ever before. We’ll also pay your claim into your trading account account.
    • You do not have to prove your claim to qualify, everything is done on your behalf automatically.
  2. Transparency:
    • We list all claim events on a public News Board hosted on a website.
    • We let all our clients know if an event affects a share they've invested in and insured. Yes we actually let you know when you can claim!
    • The value your claim is easy to calculate and depends on the Trigger Price and the value you sell the shares for; we pay the claim immediately into your trading account!
  3. Low price
    • We want to provide protection to clients when they need it, without significantly impacting their returns when they don't. We have therefore made sure to keep the price of the product as cheap as possible

Product details

How much does it cost?

The product costs 0.60% of the value of your purchase. This translates to a cost of 60 cents for every 100 rand you invest. This covers you for 12 months, even if the share price increases! Therefore if at the end of year 1 the share price is R150, you be covered for the full R150, despite paying 0.60% of R100. For example: You buy R2,000 worth of shares, we charge you R12.00 to insure these for a year. Only R12 for an entire year of cover!

What if the value of my shares increases?

We hope the share price on all shares increase; if it does you will receive the same protection without needing to pay additional premiums.

How long am I insured for?

You are insured for 12 months.

Where can I buy this protection?

The product is available on the Easy Equities trading platform (www.easyequities.co.za) and via www.investsure.insure for all non-EasyEquities clients. Easy Equities is currently the only trading platform with the product integrated at sale. The InvestSure team is now in the process of expanding the product to other trading platforms in the market (watch this space) – however if you like the product and are not investing via EasyEquities you can protect your shares at www.investsure.insure. If you like the product let your share trading platform know!

Does the share price need to go below what the shares cost me?

No, your claim is calculated on the share price the day before the news event. Your original purchase price has no impact on the calculation of the claim.

How does this impact my returns?

The product is priced as cheaply as possible in order not to influence your returns severely if no event occurs. At 0.60%- for 12 months of downside protection, the fee does not significantly erode returns, but provides a tangible benefit.

Is there paper work I have to fill out?


  1. There is no paperwork and no additional questions or underwriting; we like to make things easy. Simply check the box if you want to protect your shares.
  2. If there is a claim we will process the claim on your behalf, all you need to do is decide when you want to initiate the claim. See the Claims section for more.
What is covered?

The product is designed specifically to protect investors from the negative effects of information around management fraud and dishonesty coming to light in companies in which they made investments in good faith. Management wrongdoing includes things like:

  1. Accounting fraud
  2. Breach of regulation or laws
  3. Materially misleading or false statements
  4. Fraud
What is not covered?

The product does not cover losses due to, macro or micro economic factors, political risks or any general business risk such as failure to execute a business plan, meet estimates/projection or market expectations. Directors and their immediate family who hold shares in the company in which they are directors do not qualify for the cover

What is the News Board?

The News Board is a webpage where all prior and current events related to the product is published. All price movements on affected companies are tracked. You can see all prior events relating to the company you want to invest in as well as track shares that you might own and events listed for those shares that qualifies for a claim. The News Board can be viewed at: http://nb.investsure.info/.

How do I know when the News Board has a new event published?

We will notify you every time an event is added to the News Board for a share that you have bought cover for. We will also notify you if the triggers are met, informing you that you will be paid a claim if you sell your shares, including how long you have to sell them should you wish to claim. Yes, the insurer will let you know that you can claim!

What if I have heard of an event which is not on the News Board?

We will publish all events which fall within the scope of the Investment Fraud Insurance policy. If you believe that we have missed a major event feel free to send an email to info@compass.co.za or info@InvestSuretech.co.za and we will get back to you, as well as add the items to the News Board if the news does fall within the scope of the policy.

What is the News Date?

Any date on which allegations or information within the scope of the product comes into the public domain through multiple sources.

What are the share price triggers and why do they exist?
  1. This cover was designed to protect you as a shareholder from severe shocks to the share price which causes you to lose significant value in your investments in a short period of time.
  2. The share price trigger therefore indicates to us when there was a news event which falls within the scope of the policy which has caused significant damages to shareholders.
  3. The Share price trigger is also used as a reference point to pay claims. Once the share price trigger is met, this price at which the trigger was met is used as a reference price for paying claims – See the “Claims” Section for more.
  4. In summary, the triggers that determine whether your Investment Fraud Insurance policy will pay out are:
  5. Allegations of wrongdoing by directors surface via multiple reputable sources
  6. The share price moves more than 10% down from the Opening Price on the News Date or the day after.
What happens when the share price triggers are met?
  1. If you choose to sell your shares as a result of the management fraud, you will be paid out a claim (If there is a claim amount due to you - see Claims section and complete example below).
  2. For example – there is news / allegations of management fraud through reputable media sources and the share price drops on that day or the next day by 10%, at any point, you can sell your shares and we will pay any claim due.
  3. Real life example: Capitec Bank
    • Viceroy release a report on 30 January 2018 alleging that Capitec was committing serious accounting and other fraud.
    • The Opening Share Price on that day was R943.90 per share
    • After the news came out, during the day, Capitec’s share price dropped lower than R849.51 per share (Trigger Price). As a result, the claims period was triggered for 30 days.
    • If you sold your shares for any price less than R849.51 a claim would have been paid to you, up to the limit.
    • The limit in the above scenario was R283.17 per share. Therefore all sales between R849.51 and R283.17 would have been paid in full, for the next 30 days (so up until 28 February 2018).
    • If there were sales below R283.17, the claim would be calculated as if you sold at R283.17.
What happens if I sell shares I already bought this annual insurance for?

If you sell all your shares then a refund will be calculated and paid into your trading account at the end of the day. See Refunds, Renewals and Cancellations for more.

Who does not need to buy this product?

Any person with an extremely diverse portfolio. This is a personal decision and we can’t make it for you.

What happens if I own 1000 shares in a single company, but I have only insured some of those shares, and then I sell some of them?

If you sell some of the shares out side of a claim period, we assume that the first shares sold are uninsured so your cover is maintained as far as possible. If you sell shares because of a claim then those sold shares will be classified as insured ensuring you will receive maximum payout.

Can I insure my other investments against the risk of fraud?

Not yet, we are looking into other assets, such as listed bonds and select US stocks as well as moving towards adding more and more JSE listed shares, but for now we can only cover your Top 120 JSE listed shares.

How can I contact you?
  • Contact us via Easyequities
  • Contact us via Compass Insure
  • Contact us via Investsure
  • Why am I not able to insure all shares which appear on the platform?
    1. Most of the Top 120 shares by market capitalization are covered. Companies which are smaller than this are not covered by the product at the moment, and therefore insurance on them cannot be purchased.
    2. The limit for that particular share may have been reached already, without the insurer increasing that limit.


    When can I claim and how will I know that I can claim?

    We will send you an e-mail if you have insured shares in a company that is affected which will allow you to recover some of the losses experiences by the share price. This is an insurance first! Claiming is as easy as selling your shares! If you sell the shares that are insured during the claims period of 30 days we will automatically review and calculate the claim amount payable to you. You do not have to do anything else, just sell the shares that are insured and qualify for that claim.

    How do I claim?

    The claims process is automated via Easyequities. This is another world first. Simply sell your shares once the triggers have been met (within the time frame stipulated – 30 days) and the claim will be paid directly into your trading accountby the end of the day.

    How long do I have to sell my shares if I want to claim?

    You can sell your shares within 30 days from the News Date.

    Do I need to submit any documents to claim?

    No, you do not have to submit any documents or complete any forms. The claim will be handled automatically after you initiate the claim on the trading platform.

    How is the claim calculated?
    • Opening Price is the closing share price on the day before the news was published.
    • Trigger Price is the Opening price less 10% (Opening Price * 90%).
    • Realised Price is the share price when you sold your shares.
    • The client keeps the amount they sold their shares for.

    Determination of claim amount per share:

    Trigger Price less the higher of the Realised Price or 30% of the Opening Share Price (Limit of Cover).

    Claim example:

    • Opening Share price: R100
    • Triggers all met which results in a
    • Trigger Price of R90
    • Realised Price of R40
    • Claim paid from Trigger Price to Realised Price
    • Therefore Claim amount is R90 less R40
    • Claim amount paid is therefore R50 per share.
    What is the Limit of Cover?

    When calculating claims the Realised Price (please see How is the claim calculated?) will be capped at a minimum of 30% of the Opening Share Price.

    Claim example with sell below the Limit of Cover:

    • Opening Share price: R100
    • Triggers all met which results in a
    • Trigger Price of R90
    • Realised Price of R20
    • Limit of Cover R30 [R100 * 30%]
    • Claim paid from Trigger Price to Limit of Cover, as the Realised Price was less than the Limit of Cover.
    • Therefore Claim amount is R90 less R30
    • Claim amount paid is therefore R60 per Qualifying Share
    How fast will my claim be paid?

    Claims are automatically settled and you do not have to submit any documentation. As a result of our world class technology we can pay claims within seconds, faster than any other insurer!

    How do I get paid for a claim?
    1. Your trading platform provider will provide the insurer with all the information needed to calculate your claim in real time as you sell the shares. The claim amount will be paid back into your trading account used to buy the shares.
    2. The claim amount will be paid directly into your trading account.
    Will a claim ever be rejected?
    1. Once the triggers have been met, all sales of shares which qualify for the cover will result in a claim being paid.
    2. We do not foresee any reason not to pay a claim. If all requirements for the claim have been met we will pay the claim.
    Who pays these claims?

    Compass Insurance Company Limited is the insurer. They also have reinsurance from through one of the worlds’ largest reinsurers.

    Refunds, renewals and cancellations

    If I sold all my shares, do I get a refund for the annual premium I paid?

    It depends.

    1. A refund will be calculated when you sell a share that you had insured, unless your sale resulted in you being paid a claim. This refund will be paid into your trading account.
    2. If a claim is paid to you, no premium refund will be paid to you for those shares as you have been paid a claim for them.
    How does a refund get calculated?

    Refunds are calculated on a pro rata basis when you sell your shares and paid into the clients trading account. Therefore if you bought and insured 100 shares in company ABC at R100 per share on 1 January and sold all those shares at the same price on 30 June; you would be entitled to a refund of 50% of the premium paid, as long as the sale did not result in your receiving a claim.

    How do I renew my insurance?
    1. We will provide you with the option to renew your policy for another 12 months a month before your existing policy expires. You can renew by click on the “Renew” button on our communication and agreeing to the terms.
    2. If you selected that your policy should automatically renew you will receive a communication advising you of the renewal as well as of the premium that is payable on the renewal date. Please ensure that you have adequate funds in your trading account to enable the renewal premium to be paid.
    What if I want to cancel my policy?

    You can cancel your policy at any time by selecting “cancel policy” on the shares that are insured. You will receive a refund on premiums that have been paid and the refund will be automatically paid into your trading account.

    What happens after 1 year from inception date?

    A message will be sent to you asking to renew your policy. You have the option to renew all your covered shares at that date.

    1. When choosing to renew, credit will be granted for purchases on the policy for months that have been paid for but not used.
    2. If you choose not to renew, each cover on your policy will expire 1 year from the relevant purchase date.
    3. A message will be sent to you notifying you of the available funds in your account, the date renewal will take place and the amount that will be deducted for renewal.


    Tax treatment differs on an individual basis depending on whether you are a:

    1. Long term investor (Investing for a period of 3+ years) or
    2. Trader (i.e. your job is trading shares)

    For advice please contact a tax practitioner.