On disaster management and climate change:
We welcome government's commitment to put measures in place to respond to the impact of severe weather events. As climate change impacts the continent, we expect to see a continuing increase in the frequency and severity of floods and hailstorms which will have a significant impact on claims experience in the short-term insurance industry. Government's plans around disaster response services will hopefully mean that the damage we see from these events will reduce or be contained in certain areas.
On Energy and the electricity crisis:
As expected, the energy crisis was a significant topic in this year's speech. In addition to pressures being placed on the consumer and particularly small businesses due to reduced economic activity, we are also seeing increases in power surge claims resulting from the frequent loadshedding. We therefore welcome the tax incentives that are being tabled aimed at alleviating these pressures.
However, it is essential for the government to effectively implement these incentives and ensure that they have a meaningful impact on consumers. The success of the incentives will depend on the extent to which they are accessible, practical, and provide tangible benefits to those who need them most. We urge the government to ensure that these incentives are well-designed, well-implemented, and effectively communicated to consumers to help mitigate the impact of the energy crisis on the economy and small businesses.
Commentary from Tarina Vlok, MD of Elite Risk, a subsidiary of Old Mutual Insure
On the solar panel tax incentive:
We welcome the tax incentive rebate relating to the installation of new and unused solar panels, which is a positive step towards renewable energy generation.Homeowners who make use of this opportunity, need to ensure that the installation is done in compliance with the Electrical Installation Regulations of 2009 and that the electrician provides them with a certificate of compliance.
Only new solar panels and solar panel installations will qualify for the rebate.Whenever any renovations are done to your private home, it is very important to inform your insurer and to ensure that your buildings sum insured is adjusted to cater for the increase in rebuilding costs due to the installation of the solar system.
It is important to note that criminals are targeting the theft of solar panels, so ensure that your security is extended to protect your entire property. The installation of electric fencing can go a long way in deterring theft of solar panels.
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