Insurance companies refusing to cover total Eskom grid collapse a good thing — ombud

  • 📰 mybroadband
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 67%

United States News News

United States United States Latest News,United States United States Headlines

Reinsurers have told insurance companies that they will no longer cover a grid collapse, forcing insurers to amend their policies.

South African consumers should view insurance policy exclusions for a total grid failure as a good thing, as the industry could collapse without them.

“If insurers were to carry these losses, there is a very good risk that it could collapse the industry. Then we end up with absolutely nothing,” Nkhuna added. He explained that one of the issues some insurers have raised — the loss of backing for a total grid collapse from their reinsurers — is primarily to blame for these exclusions.

“They [insurers] also face that gap on their side, and without the backing of reinsurers, they would also be exposed,” he added. The insurer attributed the change to a need to review its cover in light of the higher risk of a blackout.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 11. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why some insurance companies insist on trackersWith vehicle theft and hijackings on the rise, some insurers are insisting that customers with targeted vehicle makes and models install trackers. Here’s why.
Source: mybroadband - 🏆 11. / 67 Read more »

ESKOM LIVE | Stage 4 load shedding returns on Thursday | BusinessAll the latest news and analysis on load shedding, power and the national grid. 🤣🤣🤣🙄 Mxm eskom Ag shame
Source: News24 - 🏆 4. / 80 Read more »