InvestSure created a world first insurance product that protects investors from losses in the share price which are caused by allegations of management misleading or deceiving the public. Such events include accounting fraud, bribery, collusion etc...
When these events happen and the market believes the allegations, they cause sudden and severe losses to shareholders. Think Enron, Steinhoff, MTN, VW and many more around the world.
We created a completely automated insurance experience – we even tell you when your insured share has lost value as a result of fraud! If you sell your insured shares within the time frame prescribed (30 days), we pay the claim immediately into your investment account. No paperwork, no contacting insurance, our automated and integrated system sees your loss and immediately pays your claim.
InvestSure offers a simple way to take the risk of a significant loss off the table, at a very small cost. Picking individual companies to invest in may offer superior returns to ETF or index funds, but it comes with increased risk of significant capital loss. The insurance for shares that we created only protects you from losses caused by management deception or fraud, but these are often the most significant and permanent losses.
As an example, in a case of two identical portfolios with five equally weighted shares, an investor who experiences Steinhoff-type loss would take 23 years to catch up to the performance of the identical InvestSure-insured portfolio (due to the small insurance cost on the insured portfolio), and that’s assuming that there are no more loss events in that time. That is 23 years of performance saved; simply by covering the risk.
South African investors can buy the InvestSure product for 0.60% of the value insured, providing annual coverage against any losses caused by management fraud.
TRADING & INVESTMENT PLATFORMS
InvestSure offers a full API integration, which minimises integration time. You don’t need to do a lot of work and your clients have a simple and effective way to protect themselves from losses due to fraud. We leverage AWS to offer a high level of security, availability and scalability. The fully automated process means that once integrated your people don’t need to invest time in maintaining the product, it’s a simple, once-off job.
In our first year of operation the product was only offered on a single platform, where it was bought by clients over 5,000 times, saving some clients the pain of a 55% loss in a single year.
We’re growing and have multiple platforms in the pipeline – please see the Contact tab to join the list.