{"id":9928,"date":"2022-02-03T10:30:28","date_gmt":"2022-02-03T10:30:28","guid":{"rendered":"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence"},"modified":"2022-02-03T11:12:57","modified_gmt":"2022-02-03T11:12:57","slug":"south-africa-vs-coronavirus-insurers-face-crisis-of-confidence","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence","title":{"rendered":"South Africa VS Coronavirus: Insurers face crisis of confidence"},"content":{"rendered":"

Africa-Press – Mauritius. <\/strong><\/span>Difficulty for many customers in paying their premiums means that insurers are \u201clikely to feel the pain for longer,\u201d than banks, says Petri Redelinghuys, founder of Herenya Capital Advisors, an equity brokerage in Johannesburg.<\/p>\n

The banks are providing relief to customers who can\u2019t pay their mortgages. They are financially strong enough to do so, and will be able to earn back the delayed loan repayments.<\/p>\n

But people who have their insurance policies cancelled for not paying their premiums might not come back once they start working again, says Redelinghuys.<\/p>\n

They may need to be won over again as if they were new customers. That process will be harder if insurers are seen as having ducked out of legitimate claims. Reluctance to pay up means that the industry risks compounding the damage it\u2019s facing from COVID-19.<\/p>\n

Insurance Claims Africa (ICA), a specialist firm which assists in the preparation of claims, has condemned Santam\u2019s decision to reject a settlement proposal from hundreds of tourism and hospitality businesses hit by COVID-19.<\/p>\n

Santam, which claims a general insurance market share of 22% in South Africa, argues that no insurer can afford to offer widespread pandemic coverage as the premiums would be too high.<\/p>\n

ICA says the 400 businesses it is representing bought policies that included claims arising from infectious diseases. It argues that the long court process that is likely to result will cause mass closure of tourism businesses and job losses.<\/p>\n

Ryan Woolley, CEO of ICA, has said that it\u2019s \u201cunconscionable of insurers to penalise their clients for their own poor underwriting skills. \u201d Spanish Flu Resisting claims looks like a short-sighted strategy.<\/p>\n

During the Spanish flu epidemic of 1918-19, South African insurance advertising sought to attract new customers by highlighting the amount that had been paid out in claims.<\/p>\n

An *advert run at cinemas in South Africa in May 1919 said that insurance companies in the country had paid out more than one million pounds to the widows and orphans of breadwinners.<\/p>\n

\u201cThe Epidemic May Return,\u201d warned the advert.<\/p>\n

\u201cInsure to the hilt. Do it now. \u201d One consequence of Spanish Flu was to pave the way for the significant insurance industry growth in South Africa.<\/p>\n

According to Stuart Jones and Andr\u00e9 M\u00fcller in The South African Economy 1910-1990, the number of insurance companies doing business in the country increased from 70 in 1917 to 90 in 1933.<\/p>\n

In the same period, the ratio of insurance company assets to those of commercial banks climbed from 42.7% to 75%. Affordability In today\u2019s market, the pricing of policies, as well as reluctance to pay claims, has the potential to stall increased penetration.<\/p>\n

In terms of short-term policies which often don\u2019t need personal contact, \u201clife goes on,\u201d says Owen Senzangakhona Nkomo, chief investment officer at the Inkunzi Student Accommodation Fund in Johannesburg.<\/p>\n

Nkomo is still paying his car insurance premiums, despite the fact that his car is lying unused. But longer-term policies such as life insurance are a problem, he says: it\u2019s hard to buy cover now as COVID-19 risk is being excluded.<\/p>\n

Nkomo sees no lack of awareness of the need to buy insurance. People understand the benefits and are getting lots of \u201cnudges\u201d to buy it through their phones and online, he says.<\/p>\n

The problem is that insurers need to design products that people can pay for. \u201cIt\u2019s all about affordability. \u201d Insurers, he says, need to \u201cadjust to the environment that we\u2019re in\u201d in terms of pricing.<\/p>\n

For More News And Analysis About Mauritius<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mauritius. Difficulty for many customers in paying their premiums means that insurers are \u201clikely to feel the pain for longer,\u201d than banks, says Petri Redelinghuys, founder of Herenya Capital Advisors, an equity brokerage in Johannesburg. The banks are providing relief to customers who can\u2019t pay their mortgages. They are financially strong enough to […]<\/p>\n","protected":false},"author":84,"featured_media":9927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6,8,16],"tags":[233,245,589,241,693],"class_list":["post-9928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-mauritius","tag-coronavirus","tag-mauritius","tag-south-africa"],"yoast_head":"\nSouth Africa VS Coronavirus: Insurers face crisis of confidence - Mauritius<\/title>\n<meta name=\"description\" content=\"Difficulty for many customers in paying their premiums means that insurers are \u201clikely to feel the pain for longer,\u201d tha ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Africa VS Coronavirus: Insurers face crisis of confidence\" \/>\n<meta property=\"og:description\" content=\"Difficulty for many customers in paying their premiums means that insurers are \u201clikely to feel the pain for longer,\u201d tha ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence\" \/>\n<meta property=\"og:site_name\" content=\"Mauritius\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-03T10:30:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-03T11:12:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2022\/02\/img-61fbb89937e0d.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"732\" \/>\n\t<meta property=\"og:image:height\" content=\"419\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"South Africa VS Coronavirus: Insurers face crisis of confidence\",\"datePublished\":\"2022-02-03T10:30:28+00:00\",\"dateModified\":\"2022-02-03T11:12:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence\"},\"wordCount\":594,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2022\/02\/img-61fbb89937e0d.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mauritius\",\"coronavirus\",\"Mauritius\",\"South Africa\"],\"articleSection\":[\"all news\",\"files\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence\",\"url\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/south-africa-vs-coronavirus-insurers-face-crisis-of-confidence\",\"name\":\"South Africa VS Coronavirus: Insurers face crisis of confidence - 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