Why your short-term insurance premiums are skyrocketing

  • 📰 BusinessTechSA
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 61%

South Africa Headlines News

South Africa Latest News,South Africa Headlines

Oswald Kuyler, head of Short-Term Insurance at Consult by Momentum explains why short-term insurance premiums are set to skyrocket by as much as 10 – 15%, saying that it’s not just the cost of our grocery basket has increased, but so has the price of our ‘insurance basket.’

It’s the 1st of the month, and the vibration of your phone alerts you to yet another debit order coming off your bank account. While it’s never your favourite time of the month – especially with the cost of just about everything going up – at least you know what to expect and have planned for it in your budget.

“As a result of several macroeconomic factors – coupled with one or two ‘black swan’ events – insurers have seen a rise in their loss ratios, with many reporting a double-digit loss. And the bad news is that this will continue, with the World Economic Forum’s 2021 Global Risks Report citing extreme weather events, climate action failure, human environmental damage and infectious diseases as the top four risks that are systemic in nature.Kuyler noted that motor vehicle repair and replacement costs have increased due to a significant strain on the global supply chain cycle following the pandemic.

“Load shedding has led to power surges that can cause damage to property and goods. Also, bear in mind that extended periods of ‘planned darkness’ provide more opportunity for criminals, making households more vulnerable to theft.” In the case of certain events, they will bear a significant brunt of the blow, which will be reflected in their rates to insurers.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 24. in ZA

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.

The HUAWEI MateBook X Pro Premium Edition: An Elegant High-Performance Flagship Notebook - HypertextHere’s a few tips why the HUAWEI MateBook X Pro Premium Edition is the most elegant high-performance flagship notebook of 2022.
Source: htxtafrica - 🏆 42. / 51 Read more »

NATASHA MARRIAN: An alliance of growing acrimonyCosatu won’t back Ramaphosa for second term, but it’s shackled to the ANC by golden handcuffs, writes NatashaMarrian.
Source: FinancialMail - 🏆 20. / 63 Read more »

NATASHA MARRIAN: An alliance of growing acrimonyCosatu won’t back Ramaphosa for second term, but it’s shackled to the ANC by golden handcuffs, writes NatashaMarrian.
Source: FinancialMail - 🏆 20. / 63 Read more »

NATASHA MARRIAN: An alliance of growing acrimonyCosatu won’t back Ramaphosa for second term, but it’s shackled to the ANC by golden handcuffs, writes NatashaMarrian.
Source: FinancialMail - 🏆 20. / 63 Read more »

Huawei MateBook X Pro Premium Edition: elegant, high-performance flagship laptopPromoted | Huawei's new MateBook X Pro Premium Edition is for businesspeople who demand perfection in a laptop.
Source: TechCentral - 🏆 8. / 71 Read more »

Power surges to potholes: Five claim trends affecting SA’s insurance landscapeSPONSORED | Infrastructural challenges, climate change and the residual effects of Covid-19 are some of the factors that have triggered indelible changes to SA’s risk landscape, says Western National Insurance.
Source: FinancialMail - 🏆 20. / 63 Read more »