Climate change, a major threat to South Africa's insurance industry

According to industry professionals, climate change has become the main concern for South African insurers and reinsurers.

The high natural disasters claim experience and the increased reinsurance rates could push insurance companies to revise rates upwards.

In 2022, South Africa experienced one of the worst floods in its history where more than 400 people lost their lives. The disaster cost the market 30 billion ZAR (1.6 billion USD).

According to scientists, 2023 was the planet's hottest year on record. Global warming is expected continue in 2024.