The crisis of natural disasters in KwaZulu-Natal

Inanda Bezuidenhout, franchise principal for short-term insurance, asset protection and risk management specialist at Consult by Momentum

KwaZulu-Natal (KZN) has been devastated by recurring floods and storms, displacing communities and causing extensive property damage. While natural disasters are inevitable, poor infrastructure, weak urban planning and delayed disaster response have worsened their impact. The key question is whether municipal mismanagement is contributing to this crisis, forcing insurers to cover costs that could have been avoided.

Municipal negligence: A growing concern:
KZN’s municipalities are responsible for flood management, road maintenance, drainage systems and emergency response. However, mismanagement, misallocated funds and a lack of accountability have left communities exposed. Taxpayer money meant for disaster risk reduction is often diverted or wasted, increasing vulnerability when disasters strike.

The burden on insurers and citizens:
As losses mount, insurers face rising claims and adjust premiums accordingly - shifting costs onto citizens. South Africans are, in effect, paying twice: once through taxes for municipal risk management and again through higher insurance premiums. This system is neither fair nor sustainable.

The double payment dilemma:
When municipalities fail in their duties, taxpayers end up shouldering the cost, funding both inefficient governance and increased insurance rates. This dynamic unfairly places the financial burden on individuals rather than the institutions responsible for disaster preparedness.

Urgent need for reform:
A major shift is needed in how disaster risks are managed and transferred. Solutions include:
• Holding municipalities accountable for risk mitigation failures
• Investing in resilient infrastructure and better early-warning systems
• Exploring public-private partnerships where municipalities and insurers collaborate on sustainable risk solutions
• Reviewing risk transfer mechanisms to prevent local governments from offloading their financial responsibility onto insurers and, ultimately, citizens

A call for accountability:
The people of KZN are not only suffering from natural disasters but also from governance failures that exacerbate their effects. It is time for municipalities to be held accountable and for systemic reform that prioritises disaster resilience and public safety - without unfairly penalising citizens.