Managing Rising Insurance Premiums in South Africa: Key Insights for Businesses and Policyholders

Insurance premiums in South Africa are rising, causing concern for both businesses and individual policyholders. From climate-related risks to economic pressures, it's important to understand the factors behind these increases and explore ways to manage your insurance costs effectively.

Simone Hargrave

5/5/20251 min read

Why Are Insurance Premiums Increasing in South Africa?

Several factors are contributing to the rise in premiums across the country:

1. Impact of Extreme Weather Events

South Africa has been facing increasingly frequent and severe weather events, driving up insurance claims. For example:

  • The 2023 Western Cape floods led to R403 million in insurance claims.

  • The Gauteng hailstorms in 2023 contributed to an additional R180 million in claims.

  • In 2024, weather-related claims paid out by Santam totaled R607 million, a staggering increase from previous years.

This surge in claims is pushing up reinsurance costs, which are then passed on to consumers through higher premiums.

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