Motor vehicle crime constitutes the bulk of insurance claims in South Africa. The claims, however, have dropped dramatically (by 50%) since 2005 with the concerted efforts of the insurance association and police authorities to prevent crime and accidents on the roads. It is also considered good practice, when researching cars for sale, to find out which vehicles are specifically targeted by crime syndicates.
Most of the insurance companies in South Africa offering short term insurance are members of the South African Insurance Association (SAIA). This helps in promoting greater awareness for the need to get short term insurance among the citizens of South Africa. Unfortunately, two of the factors that prevent most South Africans from doing so are the high number of incidents and the resultant high premiums for short term insurance, and the perception of poor insurance service.
The Demand for More Professional Ethics in Insurance
The short term insurance companies in South Africa that can guarantee no premium increases within a specified period often get more clients. In some cases, if the an insured party agrees to attend advanced driving classes, or guarantees and proves that his or her car is parked in secure places, then there is an increased chance of being offered a lower premium.
The insurance industry in South Africa is playing catch-up with the rest of the world: more insurance companies are now offering 24 hour road assistance, cash bonuses for no claims within a specified time period, and fixed and discounted rates.
At the same time, the current market for insurance is well supplied with insurance brokers. This adds to the cost of insurance as it is the consumers who have to pay for the commissions of the brokers. Insurance companies will not assume this cost.
Home Insurance in South Africa
Although disaster can strike at any moment, many South Africans have not taken the initiative to get home insurance. Many rely on the government to assist them with funds, food, and other basic services when a calamity strikes.
As an initiative to get insured, home insurance plans in South Africa are remarkably comprehensive. The need today is to close the gap between South Africans and home insurance through a massive information campaign. This campaign should focus on what could be saved other than living on what can be doled out.
It’s really all about being more independent and protected. Many insurance companies in South Africa have a market that is barely tapped into. If they can break through the initial resistance, a flood of new customers should be forthcoming. If you would like to compare your own coverage (or lack thereof) with the estimated total value of your property, you can use this property index as a guide.
Home insurance in South Africa has gone through several changes, including policies that would cover almost all incidents including tornadoes and tropical storms. Getting the home insurance while it is still at this stage is a smart move because once the information campaign the government is planning really kicks off, there will be a move to offer more detailed separate insurance plans instead.
Getting approved for home insurance is based on materials used for the house, financial and credit reports, a good history of being a prompt payer, and respectable citizen with no criminal record on file.