Magazine date:
Jul 2008 The South African insurance market is affected by the country's bad economic situation: Inflation, rising interest rates, weakness of the rand, and soaring energy and foodstuffs prices stand as an impediment for insurance activities. For this year, companies are forecasting a 10 to 15% increase of their costs, versus 6 to 8% in the previous year.
While all classes of business are affected, it is the motor insurance which reported the heaviest losses due to the increase of loss ratio and repair costs for the ever more sophisticated cars.
For the South African Insurers' Association, only a consistent valuation of the tariffs is likely to maintain service quality and companies' profitability.