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Old Mutual gets R245m in flood-related claims

Cost of damage to run into billions
These included homeowner insurance claims, motor claims, commercial and speciality claims for equipment, shipping and maritime infrastructure.
LONDIWE BUTHELEZI
Old Mutual Insure has received more than R245 million in flood-related claims and says this is "only the tip of the iceberg".

The owner of iWYZE and Mutual & Federal Risk Financing (MFRF) said that by 14 April, more than 720 claims related to flooding in KwaZulu-Natal had come in. These included homeowner insurance claims, motor claims, commercial and speciality claims for equipment, shipping and maritime infrastructure.

The floods had claimed 443 lives by Sunday evening, and 63 people were still missing. President Cyril Ramaphosa estimated that more than 40 000 people had been displaced, as close to 4 000 homes were completely destroyed and over 8 300 homes others partially damaged.

Ramaphosa said it has become clear that the cost of damage caused will run into billions of rands.

Old Mutual Insure said the extent of damage to infrastructure and property was slowly becoming apparent. But it's still too early to tell what the total claim volume will likely be.

"While this is a significant indication of the scale of the damage, this is more than likely only the tip of the iceberg. We are expecting many more claims to come in this week given that it is still early days," said Old Mutual Insure's head of retail, Soul Abraham.

Abraham said this is "already the biggest natural disaster to have happened to the insurance industry following the Knysna fires in 2017", where the total damage was R7 billion for the entire South African insurance industry.

Natural disasters are becoming a thorn in insurers' side, particularly in KZN, where deadly floods have recurred three times in the past three years.

"We are seeing a significant increase in weather-related losses in recent times and expect changing weather patterns and climate change to continue to cause havoc," said Abraham. -Fin24

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Namibian Sun 2024-12-15

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