PODCAST | PSG Insure discusses SA’s insurance market

The state of SA’s insurance market takes centre stage in this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Cedric Masondo, CEO of PSG Insure. 

Masondo outlines the impact of what he calls “SA’s prolonged hard insurance market.”

He says the country’s reinsurers and insurers have shouldered huge losses over the past five years.

Covid-19 was the first in a series of unexpected disasters, followed by volatile market forces and social instabilities that contributed to the development of a hard market. This was worsened by factors such as the unrest in KwaZulu-Natal and Gauteng in 2021, which was followed by torrential flooding in KwaZulu-Natal.

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All this took place within the broader context of the deteriorating energy crisis, which caused large-scale damage due to power surges, equipment failure and inventory losses.

As a result, insurers saw claims rising, while businesses and consumers realised the importance of having protection in place. 

During this period some insurers experienced higher policy cancellation rates as clients optimise their disposable income. The nonpayment of debit orders and defaults on premium payments increased during this period. On a commercial level, companies experienced higher rates of closure or liquidation.

Even then, he says, the industry has largely weathered the storm.

Masondo  discusses the state of SA’s insurance industry; the impact of a prolonged hard insurance market; factors driving supply and demand; and future trends.

Business Day Spotlight is a TimesLIVE Production.