Fire, faulty workmanship, and natural catastrophes are the top causes of insurance claims for business in South Africa, says global insurance company Allianz.
“Insurance claims from companies have become more severe over the past five years due to factors such as higher property and asset values, more complex supply chains and the growing concentration of exposures in one location, such as in natural catastrophe-prone areas,” said Allianz Global Corporate & Specialty chief claims officer Thomas Sepp.
“At the same time, the top two causes of claims – fires and natural hazards – remain significant loss drivers for companies. Last but not least, the impact of soaring inflation around the world will bring further pressure on claims costs,” he said.Fires generate the most expensive losses for South African businesses accounting for more than 60% of the value of all claims over the past five years.
“South Africa experienced three major claims events in the past three years. Covid-19 business interruption following the nationwide hard lockdown as well as civil unrest and flooding. It’s no surprise to see fire, natural catastrophe, storm and water damage accounting for the majority of the value of all claims in the country.
Other lines of insurance, such as directors and officers, professional indemnity and general liability, are also susceptible to inflationary pressures through rising legal defense costs and higher settlements.
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