South African Market Challenges
in Short Term Insurance

AON South Africa expressed their view of the South African Insurance market in the following way:

 

“The Energy Crisis in South Africa, weather conditions, and the geopolitical events in Europe have all exposed the weaknesses in the local and global economy and proved the ultimate test of resilience for our Policyholders.

 

In keeping with global trends, the AON South Africa team takes a deep dive into South Africa’s insurance state of the market for 2023, focusing on market factors that are influencing the property and casualty market, riots, strikes, and the terrorism market. The motor market as well as the cyber is also attended to.” *

On top of the above, we have an energy crisis, pure water and water supply crisis and the looming 2024 general elections.

 

Certain cities in South Africa experienced deadly floods, with fatalities close to 500. These floods in 2022 became the costliest event in the South African Insurance industry. The South African energy crisis raises serious concerns about the stability and reliability of trading in the global and local space.

 

Loadshedding became a household name in the South African Market in 2017 and still in 2024 with frequent spikes of stage 6 load shedding and energy suppliers proposing stage 16 schedules lying ahead.

The above impacts our ability and reputation as a reliable exporter of goods, all goods, and especially agricultural produce. The frequency of severe fires in the Western Cape put severe pressure on the farming community as well as small farmers. This also results in farmers losing their entire crop.

 

Of late, we have seen an increase in the motor cars and accidents on certain highways especially the N3 in the Van Reenen’s pass area and the downhill leading into Pietermaritzburg.

Modeling and projecting damage because of a major hailstorm accruing at 4:30 PM at the Buccleuch interchange will be disastrous to the industry, as hailstorms are occurring on a more frequent basis.

Reporting by business technology, motor statistics in South Africa indicate the following:

  1. 57 cars highjacked in South Africa per day.
  2. 60 vehicles are stolen in South Africa per day.
  3. 6 million household break-ins occurred in South Africa between 2022 – 2023.                         

    **reference AON South Africa