(Bloomberg) -- South African insurers have called on the government to start compulsory motor cover to reduce the cost to motorists and companies from the country’s millions of drivers taking to the roads without protection.
In South Africa “up to 60% of cars aren’t insured, so with 12 million vehicles, only 4 million are insured,” Gari Dombo, managing director of the insurance unit of Johannesburg- based Alexander Forbes Group Holdings Ltd., told reporters in the city today. “Those who are insured are heavily subsidizing the uninsured.”
Vehicles account for about 60% of the property and casualty insurance industry in South Africa, with accidents making up more than 80 percent of claims insurers pay out in a year, according to Dombo. Insurers in the country can’t currently claw back their costs from a guilty third party who isn’t covered. Legislation forcing car owners to have third party insurance would help the industry expand.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
