POTHOLES AND CRIME PREVENT PREMIUM REDUCTIONS IN SOUTH AFRICA. Moneyweb.co.za

Poor maintenance of South Africa’s roads and Infrastructure coupled with high crime rates are keeping short-term Insurers from reducing premiums according to Santam.

According to the Short-term Insurer, increased competition from new entrants in the market is unlikely to derive-down cost significantly.

Chief executive of Santam, Li ze’ Lambrechts said that while competition is good for the Consumers, reducing premiums means that roads and Infrastructure must be maintained better and crime must decrease because these factors have big impact on premiums. Amid challenging economic conditions, Insurers found that consumers’ are struggling to meet premium payment obligations with some even reducing their level cover so as to avoid an increase in premiums.

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