25/07/2022
GLOBAL SUPPLY-CHAIN DELAYS ARE IMPACTING INSURANCE CLAIMS
Dear Santam partner
Santam wishes to advise that over the next couple of weeks, and possibly months, clients might experience delays in the repair of damaged motor vehicles due to a global shortage in parts caused, among others, by COVID-19 and other supply-chain challenges.
These challenges also impact the availability of electronic and other related equipment or materials.
As you know, over the past two years the motor industry has faced multiple challenges, with the global demand for and supply of motor vehicles, related parts and services being impacted. South Africa’s situation is not unique. Multiple factors, including back orders due to COVID-19, the conflict between Russia and Ukraine, the recent flood damage to vehicle-manufacturing facilities and the harbour in KwaZulu-Natal, as well as international lockdowns in China and Taiwan, which are two major parts-manufacturing countries, have all exacerbated supply constraints.
Logistics services have as a result been severely disrupted and remained constrained, with the cost of these services increasing massively since 2020.
As a business we are actively engaging with a myriad of industry stakeholders, including vehicle Original Equipment Manufacturers (OEM), OEM parts dealerships and other suppliers, to find solutions to assist our clients. We are also onboarding additional suppliers and increasing the roll-out of our parts software solution. This will enable us to have a wider pool of suppliers, optimising motor body repair (MBR) parts procurement processes for Santam clients.
This supply-chain volatility impacts us across all vehicle brands, and will ultimately affect turnaround times, particularly for the repair of damaged vehicles.
We know the delays are frustrating and assure you we are doing all we can to avoid inconveniencing clients. However, for the foreseeable future, supply constraints will continue to affect our claims processes, especially the repair of all vehicle types, due to the unavoidable delays. We therefore apologise to you and your clients for any inconvenience these supply-chain constraints may cause.
Your relationship manager is there to assist you. Please reach out to him or her whenever necessary.
Keep well.
Andrew Coutts
EXECUTIVE HEAD: INTERMEDIATED BUSINESS
COMMERCIAL AND PERSONAL