Author: Indwe Risk Services
Navigating South Africa’s water crisis with proactive risk management
South Africa is facing a water crisis like never before. While climate change does impact water availability, the country’s water challenges stem largely from aging infrastructure, insufficient maintenance, and a lack of development to meet rising demand. With South Africans now feeling the effects, from disrupted daily routines to health risks and business instability, this crisis demands immediate attention.
Water is the backbone of South Africa’s economy and social structure. When supply falters, businesses are forced to slow or halt operations, affecting productivity and the workforce. The potential for continued disruptions makes it essential for individuals and companies to be proactive.
Risk mitigation for businesses
Businesses across South Africa face operational disruptions, hygiene issues, and safety risks for employees due to water shortages. Industries like agriculture and mining, which are heavily dependent on water, are especially vulnerable, facing issues that range from sanitation concerns to potential shutdowns in production.
Planning is key to mitigating these risks. Business interruption insurance is a wise consideration for any business, large or small. With a sound contingency plan in place, companies can weather adverse events that could otherwise threaten their survival. Additionally, companies should review their liability insurance to ensure it covers potential health-related claims that could arise from the inability to maintain hygiene standards during water outages.
Safeguarding your home
Water shedding poses unique risks for homeowners, including geyser failures, burst pipes caused by pressure changes, heightened fire risks, increased utility costs, and potential health hazards from waterborne diseases. Reviewing homeowner policies to ensure coverage for issues like burst pipes, water damage, and fire risks can make a significant difference. Adding fire alarms and extinguishers as extra precautions, especially given the possibility of limited firefighting resources, is a practical step.
Homeowners and businesses alike may also want to consult with their brokers to see if implementing fire prevention measures could help reduce premiums.
Practical Steps to Conserve Water
Taking small but meaningful steps to conserve water helps minimise risks and stretch available resources. Here are a few easy-to-implement water conservation tips:
- Turn off geysers when water is unavailable to prevent overheating.
- Insulate pipes to avoid damage and minimise the likelihood of bursts when water returns.
- Install low-flow taps and showerheads to reduce water usage.
- Collect rainwater for tasks like watering plants and cleaning.
- Limit irrigation and focus on essential needs only.
- Encourage water-saving habits among employees, family, and friends.
Be ready for future challenges
Preparation is your best defence against the risks of a worsening water crisis. Conserve water when possible, stay vigilant, and regularly review your insurance policies to ensure they align with your needs.
For professional guidance on risk management and tailored insurance solutions during this ongoing water crisis, reach out to Indwe. Our team is here to help you assess your risks, update your coverage, and prepare for any challenges that lie ahead.
Contact Indwe at 0860 13 13 14 or via email at indwe@indwe.co.za.
Indwe is an authorised Financial Services Provider FSP 3425
Fleet Insurance: Why It Matters and How to Choose the Right Coverage
Managing fleet vehicles is crucial for many businesses, but it’s also a significant expense and risk area. Fleet insurance, therefore, is indispensable in protecting not only the vehicles but also associated costs like risk management, security, environmental clean-up, and loss of income. This article provides an in-depth look at common risks for fleet operators, how to mitigate these, and the role of data in insurance decisions to help you make informed choices.
Key risks faced by fleet operators
Fleet operators encounter numerous risks that can result in high costs if not properly insured. The Tracker Vehicle Crime Index has shown some alarming statistics, including the fact that the likelihood of business-owned vehicles experiencing vehicle crime is 45% higher than that of privately owned vehicles. The hijacking of vehicles (from January 2024 – June 2024) stands at 54% while theft accounts of 46% of all vehicle crime.
Aside from hijacking and theft, these are the common risks faced by fleet operators:
- Vehicle accidents and collisions: not only common, but these can also be severe and incur huge costs to the business. Typical reasons for accidents are driver error, poor road conditions and poorly maintained vehicles malfunctions.
- Vandalism and theft: vehicles as well as cargo are often targeted for theft or vandalism, which results in loss and damage.
- Regulatory compliance: rules and regulations governing fleet operations are frequently changed and updated, making it crucial to keep up with laws such as having the correct licences and insurance in order to avoid fines.
- Fleet maintenance: neglecting service schedules, regular maintenance and necessary repairs can result in unreliable and unsafe vehicles.
- Environmental conditions: weather and other environmental conditions can affect, amongst others, visibility, and vehicle performance, posing significantly increased risk to fleet operations.
- Driver behaviour: speeding, distractions, fatigue, and other poor driver behaviours can increase the risk of accidents and other incidents.
- Storm damage: rain, moisture, and flooding of containers can occur during transportation, damaging or destroying the goods.
- Riot and strike action: political unrest or strikes can cause damage and undue delays to your fleet.
How businesses can mitigate these risks
There will always be risks associated with fleet operations, but fortunately, businesses can mitigate these risks in numerous ways.
- Comprehensive Insurance: coverage should include insurance for vehicles, cargo, and environmental damage. Many insurers offer flexible options like reduced excesses and profit-sharing to make policies more affordable.
- Trusted broker partnership: while it seems counterintuitive, the more challenging a business’s financial situation is, the more important it is for them to have insurance as they are unlikely to be able to absorb the costs associated with incidents. That is why it is important to have a broker that can help explain which losses could be crippling to advise you on which insurance you need to have as opposed to which would be a nice to have.
- Driver Management: continuous driver training, monitoring for fatigue, and using tools like dash cams can help prevent incidents. In fact, of 3,400 professionals surveyed, 65% of them believed that improving driver training was the key method to reducing risks associated with poor driver behaviour and fleet safety.
- Routine maintenance and licensing: Ensuring vehicles are properly maintained and compliant with load and permit requirements is essential for safe operations.
- Telematics and Dash Cams: these can provide real-time data on vehicle performance and driver behaviour for businesses to identify areas of improvement in order to take proactive measures to protect their fleet. Dash cams serve a dual purpose, recording events that can be useful in the case of an accident and acting as a deterrent for risky driving behaviours. This visibility into fleet operations helps prevent incidents and reduce insurance claims.
- Safety analytics: Analyses of patterns in driver behaviour and vehicle performance help identify risks and proactively implement preventative measures.
Insurance vs. self-insurance
With escalating insurance costs, many fleet managers are choosing to partially cover their vehicles and even opting to self-insure. The availability of non-conventional packages through insurers, market conditions and pricing often inform these decisions. While self-insurance may reduce premium costs, it requires a strong financial buffer to cover potential losses. Large businesses can sometimes handle smaller risks in-house, but catastrophic events like accidents and third-party claims can be costly. Consulting with an insurance expert ensures you choose the right balance between self-insurance and traditional policies based on your risk tolerance and financial capabilities.
If you choose to self-insure, bear in mind the costs associated with third party claims and the knock-on effects of accidents which can often run into millions of rands.
The changing landscape of transport risk management
Risk management is the process of analysis and management of a fleet to identify and respond to the inherent risks associated with managing a business’s assets. In order to mitigate these risks as far as possible, businesses are employing strong enterprise risk management strategies to put them in the best position possible to respond to risks before they become significant – and expensive.
Transport risk management software offers proactive insights, giving businesses the opportunity to identify risks early one and take the necessary steps and precautions to lower their risk.
Locally, much has changed in the transport risk landscape. The Transnet crisis and challenges at ports pose a significant risk to loads in terms of loss due to spoilage etc. There is also the political risk in terms of Sasria and insurance exclusions such as lack of cover for consequential claims. Ongoing regulatory and legislative changes are difficult to keep up with, and with new risks constantly popping up, there are many new prerequisites for the insured to meet.
With the extreme cost and loss risks a transportation company faces, developing a transportation risk management solution is vital to guide their policies and operations. This will not only help mitigate a multitude of risks but is also attractive to shippers who want to know that their goods are being well protected.
The role of data analytics in insurance decisions
Data analytics for insurance is the systematic use of data and analysis techniques to draw insights and make prediction in order to make informed business decisions. By obtaining data from numerous sources, insurance companies can detect meaningful patterns or trends to assist them in everything from identifying suspicious claims to preventing fraudulent activities.
Here are the primary use cases:
- Risk assessment and pricing: analysing data helps insurers derive insights and create strategies that were previously impossible. Insurers can now create tailored risk profiles through risk assessment to ensure that premiums accurately represent the risk they pose.
- Fraud detection: data analytics can help insurers detect inconsistencies and anomalies such as unusual spikes in claim amounts or frequency. This type of information can also show possible collusion or systematic fraud.
- Telematics: by using real-time data from connected devices, such as location-enabled smartphones and sensors, insurers can get a thorough understanding of driver behaviour and vehicle performance, taking into account speed, mileage, acceleration, harsh braking, etc. This allows them to tailor insurance premiums accordingly and provide accurate and timely information on accident circumstances.
Selecting the right insurance partner for your fleet
When choosing insurance for your fleet it is critical to consult with a broker who has a proven track record of working with a significant number of transporters over many years. A seasoned, committed advisor will be able to help you get the right insurance based on the risks you face and to protect your business.
Indwe Risk Services offers comprehensive commercial insurance for businesses and our expert advisors are ready to assist you with your fleet insurance need.
Indwe Risk Services is an authorised Financial Services Provider FSP 3425
Safe and compliant gas installation: what you need to know
Many South Africans are switching to gas due to the rising costs of electricity as well as the unpredictability of loadshedding. There are, however, specific regulations that homeowners need to comply with when installing their gas equipment to ensure their insurance policies remain valid.
Gas installations can pose considerable risks if installed incorrectly. Gas leaks could result, which would have significant health risks for anyone exposed to the fumes and pose a massive danger of explosions and fires.
In 2009, regulations were introduced which state that all gas installations must have a certificate of conformity according to the Pressure Equipment Regulations promulgated under the Occupational Health and Safety Act 85 of 1993.
These regulations also state that any homeowner who installs a liquid gas installation must be in possession of such a certificate (which should be obtained from the LPGAS-registered installer at installation phase). The onus rests on the homeowner to ensure that they have this certificate and that they present it to their insurance company as soon as installation is complete.
If you do not have a valid certificate issued by an LPGAS-registered installer and your home is damaged or destroyed due to a gas-related incident, the insurance ramifications could prove dire. An insurer would be fully within their rights to reject a claim, which will have far-reaching financial consequences for the homeowner.
What is a Gas Certificate of Compliance (COC)?
It is easy to think that such an important certificate would be a complicated legal document, but it is, in fact, a simple certificate stating that the installation was done by an authorised person registered with the Petroleum Gas Safety Association of Southern Africa (LPGAS) and that the installation has been thoroughly inspected, is certified leak-free, and is in compliance with South African National Standards (SANS).
Getting a COC is a quick and simple process if the installation was done correctly. If installation was poorly done, upgrades will need to be done before the certificate can be issued. The process is very similar to that of getting an electrical compliance certificate.
Gas installations that require a COC include gas fires or braais, gas stoves and ovens, and hot water systems. While it is critical for inspection and certification of compliance to be done for insurance purposes, it is also vital for the safety of the homeowner and their family who reside in the residence.
Why do you need a COC?
A certificate of compliance assures you safety from fires, explosions and health hazards like carbon monoxide poisoning, it is also a legal requirement in terms of OHSA and SANS, and all insurers require a legal COC to insure your home. Having a COC is also a prerequisite to selling a property, and the COC must be passed on to the new owner once registration has taken place.
Does a COC need to be updated?
In short, yes. A new COC is required when a new gas installation is done or when there have been significant repairs or modifications to the installed system. A new COC will also be required if, during a routine inspection, the current installation is deemed unsafe.,
Gas installation regulations
There are multiple regulations that govern gas installations, including where gas bottles must be placed and what materials must be used for the installation.
Gas bottles must be placed:
- More than 1m across from windows and doors.
- More than 2m from any air vents and drains.
- More than 3m below any window.
- More than 1m from your boundary wall.
- More than 5m from an electrical point or plug with switches.
Hoses and piping:
- Only approved gas piping can be used, i.e., Class 1 or 2 copper piping.
- Copper pipes that run through walls must be sleeved.
- The flexible hose cannot be more than 2m long or run through any partition such as cupboard walls, wood, or dry walling.
- The flexible hose must be made from approved material.
Best practices for homeowners
Here are some tips to ensure you always practice gas safety:
- Only use a registered gas installer and dealer.
- Always use a tested and verified gas product.
- Be sure to check that the seal on the cylinder matches the brand of the cylinder.
- Always check your gas appliances before use.
- Conduct annual maintenance check with a registered installer.
NB! If you suspect your gas appliance is unsafe, turn it off immediately and don’t touch it until it has been checked by a registered gas engineer. Open all the doors and windows to ventilate the room and ensure that you have shut off the gas supply at the meter control valve.
It is essential for all homeowners with gas installations installed on their property, or those planning to have an installation done, to ensure they are compliant with the regulations mentioned above and within their homeowners insurance policy.
Indwe Risk Services can offer you all the advice and cover you need to keep you and your family safe from gas-related disasters.
Indwe Risk Services is an authorised Financial Services Provider FSP 3425
In 2024, cyber threats continue to evolve, and businesses must remain vigilant to protect sensitive data and financial assets.
Cybersecurity should never be an afterthought because cyber risks advance in tandem with the progression of technology. Having adequate cybersecurity is central to business and should be considered as important as any other business policy.
The statistics are alarming
The World Economic Forum Global Risks Report 2024 shows that cyberattacks are ranked fifth in the current risks landscape at a staggering 39%. In terms of global risk ranked by severity over the short and long term, cyber insecurity in the private sector ranked third in the short term and eighth in the long.
A report from Cybersecurity Ventures forecast that cybercrime damages would skyrocket to over $9.5 trillion worldwide in 2024, with a projected increase of 15% over the following two years, reaching nearly $10.5 trillion annually by 2025.
It is estimated that nearly half of all cyberattacks globally are targeted at small businesses, many of which go out of business shortly after falling victim to a cyberattack.
The rise of cyberattacks in the corporate world
While malware and ransomware pose significant risks to business data, it is business email compromise (BEC) that tops the list as businesses rely heavily on email communication. BEC is a complex form of cybercrime in which unsuspecting employees are manipulated by an impersonator into transferring funds, performing unauthorised actions, or disclosing sensitive information.
Research has show that BEC scams have risen by 20% in 2024. AI-based tools are further impacting this problem by autogenerating BEC content.
According to VIPRE’s Email Threats Trend Report 2024: Q2, 40% of BEC emails were generated by AI. It also reported that 49% of all detected spam emails were BEC emails, attempting to impersonate someone within an organisation in an effort to commit digital fraud.
New attack vectors and vulnerabilities
Cloud-based systems have much to offer, but they are not without risk. Cyber-attackers can easily penetrate vulnerable firewalls, leaving confidential information and data at their disposal.
AI attack tools are easily available on GitHub. While many are used for scanning for vulnerabilities, penetration testing and training AI-based systems, they can also be used to launch attacks such as DDos, phishing and malware attacks.
Common cyber threats and the associated business risks
In this ever-evolving cyber landscape, attackers are increasingly using AI tools to create sophisticated and adaptive attack vectors to target businesses. These include:
Phishing and social engineering
AI-powered phishing attacks have become increasingly sophisticated, capable of generating nearly indistinguishable emails and social engineering schemes from legitimate communications. These highly convincing messages pose a significant threat to organisations, as a single compromised account can lead to both reputational damage and substantial financial losses.
Malware
Attackers can use AI to create new kinds of malware that can evade traditional security measures.
Vulnerability checks
AI tools can be used for automating and accelerating the discovery of possible entry points by analysing datasets to recognise vulnerabilities in systems or networks.
Deepfakes
Deepfakes pose a significant security threat, enabling attackers to create highly convincing audio and video impersonations of trusted individuals. By manipulating these deepfakes, malicious actors can gain unauthorised access or manipulate targets into revealing sensitive information. The increasing realism of deepfakes makes them a particularly dangerous tool in the hands of cybercriminals.
AI Poisoning
Cyber-attackers can influence the training data of AI models to introduce biases or vulnerabilities, in turn compromising the integrity of the AI-based applications.
These kinds of cyberattacks can result in both reputational and financial losses to a business. When clients feel that their information is not secure in your domain, they not only lose trust in your business, but also in the products or services you provide.
Over and above that, cyberattacks can result in interruption to business services, complex and time-consuming system recovery, loss of assets and loss of business.
Cyberattacks increase during holiday seasons
Holiday seasons such as increase cybersecurity threats for businesses. Many of these businesses function on skeleton staff during these times while simultaneously increasing service demands which can lead to unsupervised networks and systems. This is especially prevalent in eCommerce sales.
Most businesses have cyberattack mitigation strategies in place, but they often don’t plan for the increase in hacking attempts and security incidents.
Preventative measures
There are multiple, easy-to-implement measures that businesses can take to mitigate their risk of cyberattacks. These include:
- Strong password protection policies with multi-factor authentication.
- Constant upskilling of employees through training and awareness programmes.
- Up to date security software (antivirus, encryption, firewalls, etc.). It is advisable to set an auto download for any software updates.
- Regular security audits and detailed incident response plans.
Indwe’s cyber insurance offerings
Regardless of mitigating measures, there is always the potential of cybercriminals gaining access to your information, which is why having cyber insurance is a critical component of your risk mitigation strategy. Indwe Risk Services offers cyber insurance and risk mitigation strategies to support your business in defending against cybercrime. Being proactive is vital in order to best avoid the damage caused by breaches.
Taking up cyber liability insurance helps protect your business against internet-based risks. It covers financial losses from data breaches, business interruption, cyber extortion, cybercrime, and third-party liability post data breach.
Indwe Risks Services remains committed to constantly evolving to secure the cyber landscape to protect its clients. Businesses need to be more vigilant now than ever, as cybercriminals are increasingly finding new and innovative ways to circumnavigate the latest defences and take advantage of the security loop holes in new technology.
We urge businesses to assess their current cybersecurity protocols and to reach out to Indwe for advice on cyber liability insurance and other risk mitigation services for cybercrime prevention.
Indwe Risk Services is an authorised Financial Services Provider FSP 3425