14/04/2022
Most insurers and reinsurers are certainly going to be hit hard by claims that are going to come out of these floods from KZN.While this is not the first to happen we are told it is the worst thus far with more rains still predicted in the coming weeks.
It is unfortunate that most of the insurers will start reviewing their ratings to manage and limit their exposures in the KZN provinces because of these floods.One main player in this space has already instructed their actuaries to get to work in this regard.It is the client that would eventually finance for these losses by seeing an increase in their premiums.
The occurence of these events will certainly make people to rethink about the need to have short term insurance,for their property and household goods.Many people continue to remain uninsured for many reasons.This could be because our economy is hard pressed and people believe that they can do without short term insurance or simply the lack of knowledge of the products offered.
Natural disasters are not a frequent occurence in our country.However,when this happens it leaves a lot of destruction behind.A lot of hard work accumulated over years and items of sentimental value disappear in an instant.
With the COVID-19 pandemic,the lootings in our country and now the floods it has become more important to acknowledge the role of short term insurance in our economy.We cannot afford to stay exposed one more day extra and blame it on ignorance when something happens.
Article by Thabo Moorosi.
Thabo Moorosi is the founder and CEO of Mamepe Insurance Brokers and can be contacted on [email protected]/Cell 065 932 9095 or 010 335 0301