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Insurers stop covering losses from collapse of national grid

Posted On: Feb. 7, 2023 10:01 AM CST


As South Africans contend with the worst load shedding on record, the insurance industry faces a dilemma that has triggered the introduction of exclusionary clauses exempting insurers from paying out claims arising from an electricity grid failure, Moneyweb reported. South Africa-based insurer The Hollard Insurance Co. Ltd. and Santam Ltd. will not cover any losses caused by the collapse of the national grid. According to Ryan Woolley, chief executive at Insurance Claims Africa, said that although industry experts have repeatedly said a complete collapse of South Africa’s grid is unlikely, the worsening state of the country’s energy crisis is in part making it a difficult insurance market.