Industry trends

In 2024, we anticipate the continuation of trends observed since 2020, particularly in the business landscape:

– Pandemic coverage remains unavailable in the traditional insurance market, although parametric options are emerging in overseas markets. Uncertainty surrounding 2020 claims persists.

– SASRIA coverage is capped at R500 million per loss per annum, prompting clients with higher exposures to explore international markets. Business interruption coverage, especially under SASRIA, is limited. Ahead of an election year, it’s advisable to review potential SASRIA exposures and corresponding business interruption covers.

-Public Grid Failure exclusions as well as limitations on Power Surge covers are expected to remain in place despite efforts to try and remedy the current load shedding crises.

– Climate-related and natural peril claims persist, with recent events such as earthquakes in Japan and flooding in KwaZulu-Natal and global occurrences such as flooding and heatwaves in Australia and the USA underscoring the expectation of continued climate-related losses.

– Attention to fire risk in South Africa is increasing due to a rise in metropolitan fires and concerns over infrastructure degradation. Informal settlement fires and recent large thatch losses further highlight this concern.

– War exposures in regions like Ukraine, Israel, and surrounding territories, coupled with potential conflicts in Europe and South-Eastern Asia, emphasise the importance of risk management.

Amidst these challenges, cyber exposures are rising globally, posing threats to national institutions and organisations, including those involved in warfare. It would be remiss of us not to mention the heightened exposures to businesses and individuals seeing that most of us are banking electronically, using social media platforms and sending and receiving emails.

On the personal insurance front, consumers face deteriorating claims trends, leading insurers to adjust terms and coverage. Theft, fraud, and motor vehicle losses are increasing, alongside technological advancements reshaping insurance buying patterns, with innovations like on-demand insurance gaining traction.

Looking ahead, we anticipate innovations in insurance products, such as revised motor policies for electric vehicles and adjustments to personal insurance to align with changing consumer needs. Technology will play a pivotal role in both advising on risks and assessing them, with insurers demanding more detailed risk information.

In conclusion we envisage that 2024 will bring its fair share of “interesting risk exposures,” requiring proactive risk management strategies whether for individuals or for businesses.

Peter Olyott  


Indwe Risk Services

Indwe is an authorised Financial Services Provider FSP 3425

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