Affordability pressures squeeze SA insurers, barometer shows

The explosion of new risks such as those relating to climate-change damages and cybercrime, in a country in which a shrinking number people can afford to buy short-term insurance, is turning the industry on its head.

Though the number of people who can afford to buy insurance is dwindling, general insurance companies cannot keep increasing premiums as this could cause more people to struggle to afford insurance, Coutts said. Coutts said the industry has to shift to a new way of doing insurance, one driven by fourth industrial technologies and the internet of things in which consumers can get notifications on their phones before overheating wires cause fires, leaking geysers damage ceilings or malfunctioning fridges ruin a business’s entire stock.

Keeping a lid on insurance premiums through prevention interventions also means the pricing of insurance might become more inclusive and thereby help companies expand their risk pools. Expanding risk pools is what the industry needs to survive while the severity of claims is increasing faster than insurers’ ability to increase premiums, said Coutts.

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

SA Airlink flies to court over rival SA Express | Pretoria NewsThe privately-owned SA Airlink has turned to the Gauteng High Court, Pretoria, in an urgent bid to halt rival state-owned South African Express Airways from embarking on additional routes into Africa. pretorianews
Source: IOL - 🏆 46. / 51 Read more »

Bidcorp’s SA businesses performing above expectations in tough economyThe company says political and social upheavals in several geographies have hurt some of its businesses
Source: BDliveSA - 🏆 12. / 63 Read more »

Tourism body's radical changes rattles SA wildlife interaction industry's cages | IOL NewsSATSA has announced that local facilities offering a number of wildlife interactions will no longer be recommended to international tour operators.
Source: IOL - 🏆 46. / 51 Read more »

NEIL MANTHORP: It’s happening in SA cricket, but you must know where not to lookAll round the truth about the game is quite scary, and it could do with administrators who have a greater sense of fiduciary duties
Source: BDliveSA - 🏆 12. / 63 Read more »

SA Red Cross appeals for emergency supplies for New Hanover tornado victims | IOL NewsAccording to the organisation, trolleys had been placed in Pick 'n Pay outlets where items such as food, toiletries and blankets could be donated.
Source: IOL - 🏆 46. / 51 Read more »

ANC welcomes Andre de Ruyter's appointment, urges SA to unite in 'rebuilding' Eskom | IOL NewsANC national spokesperson Pule Mabe on Monday night welcomed the appointment of Andre De Ruyter as Eskom's new chief executive
Source: IOL - 🏆 46. / 51 Read more »