Insurance and Climate Change: How Weather Events Impact Your Premiums

The world has witnessed a concerning increase in extreme weather events in recent years, and South Africa has yet to be immune to this trend. With the Western Cape experiencing severe flooding and other weather-related disasters, it’s crucial to understand the relationship between climate change and insurance rates. This blog will delve into this connection and discuss how weather-related claims affect premiums. We’ll also suggest managing your insurance portfolio after suffering from a significant weather-related claim.

The Impact of Climate Change on Weather Events

Climate change is causing more frequent and severe weather events around the globe. South Africa has seen its fair share of extreme weather conditions, including floods, droughts, wildfires, and storms. These events can significantly damage homes, vehicles, and businesses, leading to a surge in insurance claims.

Rising Insurance Premiums

Insurance companies face higher playouts as the frequency and severity of weather-related claims increase. To cover these costs and remain financially stable, insurers often raise premiums for policyholders. This means that even if you’ve never made a claim, your premiums may still increase due to the collective impact of weather-related disasters.

Reference to Recent Weather Events

One striking example of this trend is the recent flooding in the Western Cape. The region experienced heavy rainfall, leading to widespread flooding, property damage, and loss of livelihoods. Insurers in the area faced a surge in claims, which can ultimately result in premium increases for affected policyholders.

We understand that dealing with the aftermath of a significant weather-related claim can be a stressful experience. That’s why we’re here to help you navigate the process and make informed decisions about your insurance portfolio. Here are steps you can take with our expert guidance to manage your insurance after such an event:

  • Review Your Coverage with RBS Experts After a weather-related claim, the first step is to review your insurance coverage. Our dedicated insurance experts will sit with you to ensure your policies cover your property and assets adequately. If you’ve faced flooding or other weather-related damage, we’ll work with you to verify that your homeowner’s insurance includes comprehensive coverage for water damage.
  • Optimize Your Deductible with RBS Advice Consider adjusting your deductible with the guidance of RBS Insurance Brokers to achieve a balance between financial responsibility and premium savings. Raising your deductible can often lead to lower premiums in the long run, and our professionals will help you determine the right level for your circumstances.
  • Bundle Your Policies for Greater Savings At RBS, we offer the advantage of bundling multiple insurance policies under one roof. For instance, combining your home and auto insurance with RBS can unlock valuable discounts on your premiums. By bundling, you can offset any potential premium increases in one area with substantial savings in another.
  • Enhance Risk Mitigation with RBS Insights Proactive risk mitigation is key to reducing the likelihood of future weather-related claims. RBS Insurance Brokers will provide valuable insights into risk reduction strategies tailored to your needs. From flood-resistant landscaping to fortifying your home against storms and flooding, we can help you identify practical steps that may even lead to discounts from insurers.

Climate change is an undeniable force affecting insurance rates due to the increasing frequency and severity of weather-related events. Recent events in the Western Cape are a stark reminder of the far-reaching consequences of such claims on insurance premiums. With RBS Insurance Brokers by your side, you can proactively manage your insurance portfolio, reduce risk, and confidently navigate these challenges.

Stay informed, stay prepared, and make well-informed decisions regarding your insurance needs in an era of changing climate patterns. Trust RBS Insurance Brokers to be your dedicated partner in securing the coverage you need at a price that fits your budget.

About RBS

Risk Benefit Solutions, better known as RBS, originated as an entrepreneurial-focused services business in 1998 and today is one of the largest fully-fledged black-owned insurance brokers in South Africa and a Level One BBBEE contributor. Celebration 25 years in business this year, our growth is contributed to offering clients a unique approach to risk management by positioning our skilled resources as an extension of our client’s risk management team.  Our company covers a broad spectrum of services, including Insurance Broking, Risk Management, Commercial and Corporate Risk Advisors, and Corporate Vehicle Hire Services. With its head office in Cape Town, RBS has offices in Gauteng, the Eastern Cape and globally, represented through its board membership with WING (Worldwide Insurance Network Group).