After two years of unprecedented claims coming from business interruption claims they weren't prepared for, and worldwide weather catastrophes, the reinsurance industry is not in a good space. And because of escalating claims that reinsurers have had to dip into their savings to pay, and their increasing scepticism about the local market, South Africans may soon be in for steep insurance premiums.
"I can almost guarantee you that 2022 didn't see huge amounts of bulging rates. But next year, it's definitely coming through," said KPMG SA Partner and KPMG Africa insurance practice leader Mark Danckwerts during the presentation of the accountancy firm's latest survey on the insurance sector.
According to the latest KPMG South Africa annual South African Insurance Industry Survey, the reinsurance industry – which consists of big global players like Swiss Re, Hannover Re and Munich Re who insure our local insurers – took most of the insurance pain since the pandemic started.