The short-term insurance is under a huge pressure as it is trying to keep up with the pace of regulatory changes and costs, increased competition and market trends, according to Alexander Forbes MD Gari Dombo.
Dombo was speaking this week in Johannesburg at a media round table discussion on the state of the car insurance industry in South Africa.
He expressed concerns that car hijacking claims have increased and as well as the household insurance claims have increased and this due to power surge caused by the recent loadshedding.
According to the latest national crime stats released this week, car hijacking and truck hijacking have both increased dramatically at 14.2% and 29.1% respectively but vehicle theft has decreased by 2.7%.
Dombo revealed that Alexander Forbes is currently working with their ‘partner’ to introduce Telematics in their motor insurance. He said more details will be revealed before the end of this year but he indicated that it will be compulsory to the younger customers up to the age of 30 and optional above that age category. Dombo said Telematics will offer them an opportunity to understand their customers driving patterns and behaviour and as the insurer, they will offer an incentive to younger drivers.
He said more than 60% of cars in the country are uninsured because of the costs associated with insurance and their objective is to make insurance affordable to every motorist.
Gari Dombo, MD, Alexander Forbes