Share
SA insurers batting to cope with COVID-19 business interruption claims
The tourism and hospitality industries have been among the hardest hit by measures to control the spread of the COVID-19 pandemic. Fighting for survival through yet another Level 4 lockdown, their plight has been worsened by insurance companies stalling on Business Interruption insurance claims. What is the hold up? Dr Roelof Botha, Economic Advisor to Optimum Investment Group joins CNBC Africa for more.
Tue, 06 Jul 2021 16:09:30 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Insurance companies are being criticized for their reluctance to pay out business interruption claims, leaving many small businesses in dire straits.
- Despite record profits and soaring premium incomes, insurers are stalling claim payouts, leading to widespread financial hardships for businesses and employees.
- Stakeholders are calling for greater transparency and accountability in the insurance industry, as the debate over delayed claim settlements intensifies.
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.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.