News Release

The Year Ahead: 2015

As we head into 2015, we are all too aware of the financial constraints that consumers are facing.  The average projected GDP until 2017 is only 3%, while consumers will need to fork out more on fuel price hikes, ever increasing water and electricity utility bills, high education costs and the rapidly increasing cost of living, especially on food stuffs.

The weakening of the Rand, the number of recent local natural disasters together with the increase in vehicle accidents are some of the reasons behind advised rate increases across the insurance industry.

With the increased number of motor vehicles on the road, motorists are more likely to have an accident than in the past.  Average cost of an accident continues to increase.  While these realities may seem insurmountable, the secret to managing your insurance premium increases however lies in risk managing your insurance portfolio. 

A well-conceived insurance program is achieved by consulting with a professional broker who can assess your unique needs, risk profile and budget, and tailor-make an insurance offering that gives you peace of mind knowing that your hard earned assets are safeguarded in the event of a loss and, most importantly, that you’re paying the right price for the right amount of cover.

One of the most important factors in managing your own premium levels is to improve your risk levels through effective risk management and to take steps to prevent or minimise losses.  The drive to save costs in the current environment is totally understandable. Insurance is one area where consumers often believe they can save, but the emphasis must be on right-sizing your covers and seeking economies where they are to be found, and to avoid under-insuring.

A good risk profile in addition to a positive credit rating will stand you in good stead.  Your claims history also plays a big part when it comes to profiling your individual risk rating, as is what you claimed for and the circumstances surrounding each claim.  All these elements have an impact on your premium and can lead to increases beyond what you expected, if not managed correctly. 

Aon provides guidance and tips when reviewing your insurance covers:

  • Accept an increased excess on your policy that you can afford.  By doing this, you will obtain a premium discount.
  • Accept a risk in its entirety i.e. not insuring an item which is relatively easy and readily replaceable such as your cell phone.
  • Consolidate your homeowners, household contents and motor cover with one insurer. 
  • Make sure that you comply with insurers minimum security requirements for your home and car.
  • Remember to tell us about any security upgrades which could reduce your premium. 
  • Your property itself and its contents must be accurately insured for replacement cost to avoid the application of the ‘average’ formula. 
  • Analyse your portfolio professionally with the assistance of a broker at least once a year.
  • Consider whether you can really afford to claim for causes that could have been avoided in the first place. 

You can benefit from sound risk management advice by speaking to us to assist in reducing your incidence of losses, allowing you to benefit from a segmented rating where low risk clients enjoy lower premium levels than those with higher risks. While premium increases may be unavoidable in some instances, they can be managed.

Quick links


Falling oil prices have global implications: Aon Political Risk Map 2015
Cyber risks Severely Underrated by EMEA Businesses
Don't Become a Victim of Opportunistic Crime

Aon welcomes relevant dialogue and commentary on our thought leadership materials posted to our website. However, we reserve the right to delete any content that is harmful, obscene, or spam before it is published to the site.

If you elect to comment or engage with our content via third-party social media websites, you authorize Aon to have access to certain social media profile information. Please click here to learn more about information that may be collected when using these tools on Aon.co.za

All Comments(570)

Open for comments. Sign in or create your Aon South Africa account to join the discussion.
Tom Hatcher 7 Jun 2014 14:58 Comments Policy
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed luctus nulla ac sem viverra, quis adipiscing lectus elementum. Fusce semper bibendum pellentesque.
Sandy Smith 25 May 2014 11:44 Comments Policy
Lorem ipsum dolor et al.
John Smith 12 May 2014 17:09 Comments Policy
Lorem ipsum dolor et al. Lorem ipsum dolor et al. Lorem ipsum dolor et al.
Show all comments...
Previous 1 2 3 4 5 Next

Quick Forms

Contact Me
Compliments & Complaints

Twitter Feed