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by Malesela Ledwaba

From its early inception as predominantly a maritime instrument until the present day, insurance has grown significantly in scope, purpose, and availability. Today the insurance industry contributes to economic growth and national prosperity in various ways. At the macro level, the industry helps strengthen the efficiency and resilience of the economy by facilitating the transfer of risk. At the micro level, it brings benefits in all areas of the day-to-day life. Insurance helps individuals minimize the financial impact of unexpected and unwelcome future events and helps them organize their businesses and their lives with greater certainty. Risk-averse individuals can enjoy greater utility from their most important assets via the purchase of insurance products. Almost every conceivable asset or activity can be insured through familiar product types, such as motor, building, home contents insurance, all risk and travel insurance, and by business through professional and liability insurance, cover for business interruption, and many other contingencies.

As we settle into the realisation that the pandemic has altered our lives and things might not return to normal for a long time, if ever, the newfound ability to work from home, means that we need to assess the risk on our property in a new light. Surely insurance risk on vehicles must be reviewed. They are not being used as in the past. Another item to question, is have the risks that we had in the business space been transferred to the home space?

Because the financial implications attached to the COVID-19 pandemic are being felt by all consumers are under immense personal financial pressure and are taking a hard look at their budgets to try and create breathing room. It will not be long before consumers flee to more agile insurance companies that will measure the vehicle premiums based on amount of usage.

The statistics show that claims have decreased during lockdown. Due to this some insurers are currently offering premium discounts of between 15% and 25%. Is yours coming to the party?

Some options that consumers can look at to reduce premiums:

  • Because policy holders will be driving less, they can opt for a limited mileage insurance cover that will significantly reduce premiums. However not all Insurers offer this option.
  • Policy holders can opt to have a slightly higher excess on their vehicles to reduce premiums.
  • Policy holders with fully paid vehicles can opt to reduce cover from comprehensive to third party, fire, and theft. However, the option should be selected provided the vehicles are kept in a sheltered place as risks like hail, earthquake and floods remains.

At Morebo we are doing business as usual although remotely. Our systems allow us to assist you with the assessment of risk, quote comparisons and placement of business.

Please contact us so that we can share our insights into how best to position yourself in these times of uncertainty. Just pop us a mail to  Also, remember to start your car every now and then to keep its battery from going flat.


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Morebo Financial Solutions (Pty) Ltd, an affiliate of Liberty, the Liberty Group Ltd is an authorised Financial Services Provider in terms of the FAIS Act. (No. 2409)
Morebo Wealth (Pty) Ltd, an affiliate of Liberty, the Liberty Group Ltd is an authorised Financial Services Provider in terms of the FAIS Act (no. 2409)
Morebo Brokerage (Pty) Ltd is an Authorised Financial Services Provider in terms of the FAIS Act (no. 48360)

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