According to the CE of Santam, Steffen Gilbert, crime ? and in particular car-jackings ? seems to be on the increase.

Claims data suggests there has been a recent upsurge in the incidence of crimes like car-jacking, and combined with vehicle price hikes, this leads to premium increases for policyholders.

Local car manufacturers and importers are reporting price hikes of two to three percent, mainly as a result of the weakening rand. As vehicles become more expensive to replace, insurance premiums are hiked.

Microdot technology

"Many car owners are taking advantage of new and affordable microdot identification technology and tracking to prevent car theft, and in so doing, keeping their premiums down," Gilbert says.

"Although not all preventative measures will reduce monthly premiums, in the long-run they will keep premiums down by reducing claims.

"Also, if a car is stolen and replaced by an insurer, premiums will go up, whether or not it was due to policyholder negligence. So it makes sense to prevent thieves from targeting cars in the first place.

Gilbert warns car owners to be more vigilant when driving, due to the increase in car-jackings.

Meanwhile, changing weather patterns are also a growing threat faced by both insurers and South Africa?s agricultural producers.

Global warming

"When weather-related catastrophes occur it results in a rate hike for insurers by their reinsurers, which is generally passed on to the consumer through insurance premiums," says Gilbert.

Gilbert says he has no doubt that global warming will impact more on insurers and policyholders than in the past. "Insurers will need to absorb a larger portion of reinsurance costs to keep premiums affordable in the future, which may result in significant cost-cutting in order to remain profitable."

The magnitude of the unusual snowfall and flooding seen over the winter is but one example of a localised change in weather patterns. Climatologists also predict that the Southern and Eastern Cape will experience more frequent flooding, while the Western Cape is set to become drier.

"These are factors against which farmers will need to insure themselves and possibly adapt by introducing hardier variations of crops, new production techniques or even entirely new crops," Gilbert says.