South African catastrophes, power woes signal end of cheap insurance

Three major jolts in as many years coupled with the once unthinkable possibility of a power grid collapse have spooked reinsurers in South Africa, spelling an end to cheap coverage in the continent’s most developed insurance market. Insurance premiums are climbing worldwide on the back of rising inflation and interest rate hikes. But reinsurance rates in South Africa are outstripping the global trend – in some cases tripling – as insurers grapple with an unprecedented claims load, six industry executives told Reuters.