Investment and insurance
Sep 23 2018 – Lameez Omarjee
Extreme weather patterns have increased the potential for liability claims, costing both insurers and clients more, an industry expert has warned.
In 2017, worldwide weather events, natural phenomena and large man-made disasters ran up estimated losses of $337bn (about R4.8 trn), according to global reinsurer Swiss Re Sigma. This translated to insured losses of $144bn (about R2.05bn).
South Africa has also contended with the results of extreme weather, such as the Knysna fires, the drought in the Western Cape, and severe floods and storms in Gauteng.
Insurers and reinsurers did manage to pay valid claims. However, the increase in weather events means insurers must be aware of a likely increase in such claims in the future, explains Caroline Theodosiou, director at law firm Norton Rose Fulbright.
Having paid out large numbers of claims, the next step is to recover the monies paid out. According to Theodosiou, this is where […]