Cargo underwriters are facing significant challenges amid an uncertain economic environment, which is driving up costs for cargo owners.
Mike Brews, underwriting manager at Horizon Underwriting Managers, expressed concerns about the subdued nature of the local market amidst challenging economic conditions.
He noted a significant increase in cargo claims being lodged compared to previous years."In the past, clients were more inclined to absorb smaller claims into their business operations.
However, with the current state of the economy, we are witnessing a shift in behaviour where clients are now more eager and willing to file claims," Brews said, highlighting this trend as a clear indicator of economic strain.
"Naturally, this surge in claims has a ripple effect on premiums."
Brews' observations underscore the impact of economic instability on client behaviour within the insurance sector, with businesses becoming increasingly vigilant about protecting their interests in uncertain times.
He said the prevalence of hijackings and theft within the southern African cargo industry remained.
"High-value cargo has always been a prime target, but we're now witnessing a concerning trend where virtually anything and everything is at risk," he explained.
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