Toll of extreme weather, crime

DAMAGES RISING: AS THESE INCIDENTS INCREASE, CONSUMERS' INSURANCE COVER SHOULD TOO

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Severe weather and crime are increasing in South Africa and this means the risk of damage is also increasing, which makes it important to check your short-term insurance is adequate to cover losses if disaster strikes.

Consumers are increasingly falling back on their short-term insurance as climate-related severe weather and crime increase, according to the 2024-2025 Santam Insurance Barometer Report, which highlighted that 18% of consumers claimed against a short-term insurance policy in the past 12 months.

This is the highest percentage since 2019, Lizelle Greeff, underwriting specialist at Santam Broker Solutions, said.

Across the globe the impacts of climate-related adverse weather events are being felt, with United Nations secretary general Antonio Guterres recently stating that soaring temperatures in Europe are no longer rare and should be considered the new normal.

Although only 8% of South African survey respondents reported suffering a financial loss due to extreme weather events over the past two years, 48% said they were "very concerned" and a further 29% were "somewhat concerned" about this risk.

According to the US's Environmental Protection Agency, extreme weather events, such as heat waves and large storms, are becoming more intense with human-induced climate change.