Cape fires and storms may cost insurers in excess of R4bn

Losses caused by Western Cape fires and storms could cost the insurance industry in excess of R3bn to R4bn‚ outstripping the costs of previous disasters and leading to higher insurance premiums in affected areas‚ said Old Mutual Insure.

On Friday‚ the death toll from severe weather and fires along the southern coastline had reached at least 12.

Hennie Nortje‚ head of claims at Old Mutual Insure‚ previously Mutual & Federal‚ said insurance premiums were likely to rise in the southern Cape‚ where risk of flooding had increased.

135 schools damaged by Western Cape storms

He said the R3bn to R4bn in possible losses was an estimate. Old Mutual Insure’s claims already ran into the millions‚ with initial estimates forecasting claims of more than R400m‚ Nortje said.

By Hanna Ziady‚ Business Team – Tiso Black Star Group

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