Non-life / General

Crime, flood and power surge claims could KO non-life insurers

2022 was a tough year for South Africa domiciled non-life insurers. In a November 2022 operational update, Santam Limited said that the year-to-date underwriting environment had been characterised by high claims inflation, electrical power surges, crime-related claims and adverse weather. This is hardly surprising news, given the devastating floods in KwaZulu-Natal (KZN) in April 2022 and the string of flood events that have made news headlines in areas of Gauteng and the Western Cape since. Ailing power utility Eskom was unfortunately busier (sic) than the weather, achieving a 200% jump in loadshedding hours in 2022 over 2021.

Insuring heritage property in South Africa – how it works and what to consider

For many South Africans, the thought of owning a heritage property is an exciting prospect, given its cultural relevance, its potential worth as an investment in conjunction with its distinctive architectural character.

Stay safe as the festive season approaches

How Location Technology is Revolutionising Insurance Risk

Since insurance first started centuries ago, premiums have been determined on the basis of client risk profiles, with insurers pooling risk across large numbers of clients to take advantage of the laws of large numbers. It has always been an imperative for insurers to ensure that their premiums reflect client’s individual risk profiles, because otherwise their risk pool would attract higher risk clients and repel lower risk clients. When it comes to property insurance (e.g., buildings and contents), companies such as Santam embrace technology to ensure that premiums are fairer and better differentiated between clients. Geolocation or geocoding technology allows insurers to more accurately weigh the risk of a property based on its location. With this information, insurers can generate more accurately priced policies.