SA insurers batting to cope with COVID-19 business interruption claims

South African insurance companies are facing mounting criticism for their reluctance to pay out business interruption claims in the wake of the COVID-19 pandemic. Dr. Roelof Botha, Economic Advisor to Optimum Investment Group, has shed light on the issue, highlighting the plight of small businesses in the tourism and hospitality sectors that are struggling to survive amidst the crisis. The delays in claim payouts have left many companies on the brink of collapse, with employees facing significant salary cuts as a result. The contentious issue has sparked outrage among industry experts and the broader community, as insurers continue to amass record profits while withholding much-needed financial support to those in need. The key theme of the discussion revolves around the unjustifiable stalling tactics employed by insurance companies, despite their substantial financial reserves and soaring premium incomes. Dr. Botha emphasized that the current situation is untenable and called for greater transparency and accountability in the industry. As the debate rages on, stakeholders are exploring alternative avenues to address the issue and ensure that businesses receive the support they desperately require. The road ahead remains uncertain, but the spotlight on insurance companies' handling of business interruption claims is unlikely to fade anytime soon.