Insurance Association highlights the impact of climate-related catastrophes

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GUEST – Themba Palagangwe, SA Insurance Associations's General Manager: Governance and Transformation



Climate-related catastrophes such as floods and storms continue to exert a significant toll on both consumers and society at large, greatly affecting South Africa’s socio-economic landscape.



The South African Insurance Association (SAIA) has observed a notable surge in weather-related insurance claims among its member companies for both property and motor insurance, underscoring the growing vulnerability of individuals and communities to climate change risks.



South Africa experienced severe weather events that resulted in more than 400 deaths and destruction of more than 12 000 homes in 2022. In KwaZulu-Natal, the floods were the most catastrophic natural disaster to hit South Africa in living memory, leading to billions of Rands in economic losses. According to the Western Cape government, at least R3.5 billion worth of infrastructure was destroyed in two major floods in June and September last year. Such devastating events have a huge impact on the well-being of communities.



In response to this escalating trend, SAIA remains committed to enhancing consumer awareness and promoting risk management frameworks. By advocating for the adoption of non-life insurance products and services as integral components of comprehensive risk mitigation measures, SAIA aims to empower individuals and households to navigate the evolving challenges posed by climate change.
8 Apr 2024 4PM English South Africa Business News · Investing

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