As an insurance executive in South Africa, you are no stranger to the challenges facing the short-term insurance industry. From the pandemic to riots and natural disasters, the industry has been hit hard in recent years. But with the right strategies in place, you can navigate these challenges and come out on top.

Here are five steps you can take to overcome the challenges facing the short-term insurance industry in South Africa:

Step 1: Embrace Technology

One of the biggest trends in the industry is the rise of insurtech. Traditional players are investing in insurtech companies that have entered the industry, and new entrants are still relatively small and underwritten by traditional players. By embracing technology, you can diversify your revenues, lower costs, and remain competitive.

Step 2: Leverage Advanced Technology to Make Insurance Accessible to the Uninsured

Another opportunity in the industry is to leverage advanced technology to make insurance accessible to the uninsured. With the right technology in place, you can reach new customers and expand your market share.

Step 3: Address the Challenges of Affordability

One of the biggest challenges facing the industry is affordability. With constrained household incomes and a poor economic environment, insurance is becoming less affordable for many South Africans. To address this challenge, you may need to consider customised solutions that meet the needs of your customers.

Step 4: Prepare for the Increasing Frequency and Severity of Natural Catastrophes

Experts have predicted that the severity and frequency of natural disasters will increase in the future. To prepare for this, you need to ensure that your infrastructure is sufficiently maintained and that you have the right insurance products in place to protect your customers.

Step 5: Simplify Regulatory and Legal Compliance

The COFI Bill may help to simplify regulatory and legal compliance in the industry. By staying up-to-date with the latest regulations and compliance requirements, you can ensure that your business is operating legally and ethically.

At Riskwolf, we understand the challenges facing the short-term insurance industry in South Africa. That’s why we offer unique real-time data and dynamic risk modelling to enable insurers to build and operate parametric insurance at scale. With Riskwolf, you can turn real-time data into insurance.

To learn more about the challenges facing the short-term insurance industry in South Africa, check out this report by Research and Markets. And if you’re ready to develop parametric insurance for your business, get in touch with Riskwolf today.