Weather Whiplash: Why Insurance Is More Essential Than Ever!

The snowfall last week, which impacted much of KwaZulu-Natal and parts of the Free State, serves as yet another reminder of South Africa’s increasingly unpredictable weather patterns. In 2023, Johannesburg also experienced a light snowfall, though it was far less severe than last week’s event. Even then, such occurrences were considered unusual in the South African context.

In recent years, South Africa has faced extreme weather conditions, including the devastating floods in KwaZulu-Natal in 2022, powerful winds in Cape Town in 2024, and the 2024 Tongaat tornado. These incidents reflect the ongoing changes in weather patterns.

To manage the consequences of these unpredictable events, insurance is becoming more of a necessity than the luxury it has traditionally been perceived as, particularly in South Africa. Both businesses and individuals need to adapt to these changing conditions, and a key part of this adaptation is securing appropriate insurance coverage.

Based on recent incidents, here are some of the insurance policies that businesses and individuals should consider (in no particular order):

• Life insurance – The events mentioned above claimed several lives, highlighting the importance for individuals to have valid life insurance policies.
• Funeral cover – This is closely linked to life insurance policies and provides additional coverage for funeral-related expenses.
• Business interruption – These events often halt business operations, leading to a loss of income. As a result, businesses should consider business interruption policies to mitigate such risks.
• Car insurance – Valid motor vehicle insurance policies are essential. During last week’s snow, many vehicles were stuck in snow or suffered flat tires. Such situations can cause damage, making motor vehicle insurance critical.
• Agriculture insurance – Farming businesses need to review their policies. For instance, during last week’s snow, media reports highlighted livestock and crop losses due to extreme cold.
• Cyber insurance – Cybercriminals often exploit moments when businesses and individuals are preoccupied with disasters. As such, it’s important to have cyber insurance to protect against cyberattacks during these vulnerable times.
• Building, home, or contents insurance – In the event of disasters such as tornadoes, it is crucial to protect property and possessions by taking out relevant insurance policies.

The above list is not exhaustive.

For those without these policies, it is important to purchase them. For those who already have coverage, it is critical to ensure that the policies remain valid—by reviewing them regularly and reporting any risk-altering developments to the insurer. Policyholders should work closely with their brokers or insurers to understand the extent of their coverage. Finally, it is essential for policyholders to fully understand their policy conditions and exclusions.