Losses caused by Western Cape fires and storms could cost the insurance industry in excess of R3 billion to R4 billion‚ outstripping the costs of previous disasters and leading to higher insurance premiums in affected areas‚ said Old Mutual Insure. On Friday‚ the death toll from severe weather and fires along the southern coastline had reached at least 12.
Hennie Nortje‚ head of claims at Old Mutual Insure‚ previously Mutual & Federal‚ said insurance premiums were likely to rise in the southern Cape‚ where risk of flooding had increased. He said the R3 billion to R4 billion in possible losses was an estimate.
Old Mutual Insure’s claims already ran into the millions‚ with initial estimates forecasting claims of more than R400 million‚ Nortje said. Santam, the country’s largest short-term insurer, had received more than 1,000 claims, said head of claims Ebrahim Asmal.
[Source: TimesLive]
