What is the historical background to the market’s switch from Multimark to Broadform?

The Multimark (MM) policy was introduced to the South African market in 1987. The policy was used extensively by most insurers until 2007 when SAIA decided that the continued use of a market agreed wording could be construed as contrary to the conditions of the Competitions Act no. 89 of 1998. Whilst the Multimark policy was no longer endorsed as “market agreed”, many insurers and brokers continued to offer the same cover under different names.

Changes to the legislative landscape, such as the introduction of the Consumer Protection Act precipitated a need for a wider liability cover. The CPA has exposed most businesses to strict liability (no fault liability) which means that a business can be held liable for the intentional, ‘non-accidental’ acts of a person who is not part of the business. Since Multimark policies only respond to liability arising out of an accident, the market has been moving towards Broadform liability which does not impose this restriction.

“Broadform” is a generic term for a liability insurance policy originating in the United States. Its introduction into the South African market was initially limited to the larger commercial and corporate risks. However during period 2009 to 2011 Camargue Underwriting Managers was largely responsible for precipitating the market’s move towards also insuring smaller businesses on a Broadform basis.

General Liability