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South African Insurance companies for the past week have been informing their clients that they cannot protect them against the damages caused by the collapse of the national electricity grid and policyholders cannot claim for damages.
South African Insurance companies for the past week have been informing their clients that they cannot protect them against the damages caused by the collapse of the national electricity grid and policyholders cannot claim for damages.
South Africa has endured unprecedented levels of load-shedding as utility Eskom’s limping power stations struggle to generate enough energy to meet demand. In a recent media briefing former chief executive André de Ruyter said Eskom was in the process of reviewing its documentation and schedules that govern stages of load-shedding and forming contingencies for if the country hits stage eight.
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This has led to speculation of a possible grid failure, a systemic risk against which insurance companies cannot protect their clients, according to Soul Abraham, chief executive for retail at Old Mutual Insure.
