Insurance touches just about every aspect of our lives. It can give us peace of mind; allow us to push the boundaries and provide security when something goes wrong.
Justin Naylor, CEO at iTOO Special Risks, notes that a glance at the news headlines serves as a very good reminder of how every event in life is somehow influenced or affected by insurance, as it is an instrument that helps society progress.
“For instance, if a fuel tanker spills its load on the highway, there is insurance for that. When a professional is sued for negligence, there is insurance for that. If your art collection gets stolen, there is insurance for that too,” he says.
“South Africa recently has just held a ground breaking general election and there was a level of uncertainty at the time, but through SASRIA, iTOO and global insurance markets, there was political violence and terrorism insurance. This helped clients to continue trading when through uncertain times.
But, says Naylor, insurance is not just about helping clients when something goes wrong, it is also about pushing innovation and helping society grow and advance.
“Have a look at the tallest building in Africa, the 233m Leonardo in Sandton, and remember that the engineer who pushed the boundary and took the risk to put it up had to have his professional indemnity insured. So, without insurance, this would not have happened,” says Naylor.
It is also insurance that is allowing innovation to thrive in the renewables sector, as mega green energy projects are now commonly being covered for billions of rands. Without insurance coverage, banks would not finance these projects.”
Naylor says that South Africa has seen significant downgrades in load shedding, mostly thanks to private sector investments into renewables. The PWC Africa Energy Review 2023 reveals that South Africa has installed 10GW of renewable projects, as the country transitions from Eskom and fossil-based power to green energies.
“Renewables projects are also gaining momentum across the rest of Africa, with the largest green project recently being insured for $500-million (R9,19-billion) – those are staggering numbers. And it’s all made possible by insurance,” he says.
“The insurance industry is essentially helping and supporting South Africa to transition to renewables, eliminating load shedding and saving the environment.”
Insurance touches people’s daily lives in many different ways. Whether it is coverage for kidnapping and ransom; loss of collectables; medical malpractice; drones and aviation or cyber risks that protects exposures in an always connected word – people can have peace of mind while exploring the edges of what is possible.
“By providing that safety net, insurance gives people the chance to push themselves and push the boundaries as they explore the leading edge of innovation. Without the protection of insurance, growth would slow, and development would cease,” Naylor states.
He explains that special risk insurers are also key to identifying and mitigating new and emerging risks that can severely affect people and businesses. For example, cybercrime has become a massive threat to both businesses and individuals.
According to Security Magazine, around the world, there are more than 800 000 attacks each year, which works out to 2 200 attacks each day, and breaks down to nearly one cyber attack every 39 seconds.
“This is simply frightening, especially considering that most of those attacks could seriously damage a business, if not shut it down completely. Again, cyber insurance keeps these enterprises running, says Naylor.
“Specialist risk insurers will not only provide financial help to cover the losses that can result from an attack, but they will also do all the necessary risk management work, using special risk tools to analyse a client’s potential cyber risks.”
He points out that insurance has evolved drastically from just being a process of safeguarding the interest of individuals from loss and uncertainty. In this day and age, insurance can be better described as a social device that enables advancement by reducing risk.
“Insurance is essentially about conquering risk and unleashing potential. By allowing the pioneers and innovators to push the envelope, insurance is having a continuous and positive impact on society. While most people do not think much about insurance until the moment they need it, it is amazing how it touches every aspect of our lives,” Naylor concludes.