Building Resilience Against Climate Change

Climate change is bringing more unpredictable weather and increased risks. We need to ensure our homes and businesses are adequately covered.

South Africa's weather patterns are changing rapidly, leading to rising insurance costs. We as insurers must educate everyone about these evolving risks. By raising awareness and encouraging proactive change, we can collectively navigate this new landscape.

While South Africa was once considered relatively low risk for natural disasters, this perception is shifting. In 2023, we experienced severe weather and fire-related claims, compounded by the impact of the Türkiye earthquake.

The Evolving Risk Landscape

Many people lack sufficient insurance cover, which is hindering their ability to recover from disasters. At Santam, we are leveraging new technologies and collaborating with others to enhance our preparedness as these evolving risks are also reflected in regulatory changes.

By leveraging advanced technologies like predictive analytics, geocoding, and scenario analysis, we can better assess risks and set premiums that reflect the changing environment. But addressing resilience goes beyond just product design — it requires collaboration.

Data-driven innovation will be essential for insurers as we adapt to this new era of climate risk. Programs like the Santam Partnership for Risk and Resilience (P4RR) demonstrates our commitment to a collaborative approach by sharing data and conducting joint risk assessments to build predictive capabilities that guide disaster preparedness efforts.

How Can Our Clients Minimise Their Risk?

Here are a few steps clients can take to protect themselves and their assets:

1. Ensure Adequate Cover: Review your insurance policies to ensure they cover floods, fires, and hail. We offer suitable options for both homes and vehicles.

For example: Our property cover allows clients to opt-in for comprehensive landslip or substantive cover. For vehicle cover, our comprehensive cover includes what we call perils, as well as third-party cover.  

2. Home and Contents Insurance: Ensure your policy covers both structural damage and weather-related incidents. Keep your property's value updated.

3. Property Maintenance: Proactively maintain your property by cleaning gutters, clearing drains, fixing leaks, and trimming trees to minimize potential damage.

4. Car Insurance: Verify that you have comprehensive cover which includes weather-related damage. Always utilise garages or sheltered parking for added protection.

We encourage our clients to consider investing in a carport or garage for undercover protection, reducing risk. Additionally, make use of our value-added services roadside assistance or include optional add-ons like car hire cover, to ensure you’re prepared for the unexpected.

Building a Resilient Future Together

Insurance plays a crucial role in facilitating recovery from adverse events. We aim to provide everyone with the necessary security. Let's collaborate to build more resilient communities. 

Related articles: 

• A new era of risk - Insurance in a changing climate