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Insurers crunch claims numbers as storms clear

Santam would be able to provide information on the extent of the damages in two days, he said.

Rudolf Britz, chief actuary at short-term insurer Momentum, said they experienced an increase in property damage claims due to extreme weather.

“There is much talk about the causes of these events. We certainly are starting to receive more claims for extreme-weather property damage than we have previously,” he said.

Increasing population pressure resulting in more properties being built that are exposed to the elements, contributed to a rise in claims, Britz said.

The rising incidence of extreme weather events could push insurance premiums up.

“Traditionally, one can underwrite risk that happens in isolation and balance that against the broader pool, where conditions are stable,” said Britz.

“But once the entire pool is affected by more frequent and more severe events, then the whole pool has to contribute.

“This means that premiums must increase by more than inflation as events become more frequent and more severe.”


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