Funeka Ngewu, Executive Head of Claims and Claims Procurement, looks at what South Africa’s evolving risk landscape is teaching us, and how Momentum Insure is responding.
In the insurance industry, standard claims such as minor vehicle repairs or geyser bursts are the bread and butter of daily operations. However, it is the complex, out-of-the-ordinary claims that provide the most valuable insights into our evolving risk landscape.
Behind every intricate claim lies a wealth of data-rich lessons that can reshape how we think about risk, leadership, and long-term stability. These complex cases provide real-world case studies that reveal where systems succeed, where they fail, and how we can better prepare for an increasingly volatile world.
- Risk is systemic and interconnected
Historically, risks were viewed in silos such as fire, theft, or natural disaster. Today’s complex claims reveal a high degree of risk contagion. A localised flood doesn’t just cause physical damage; it disrupts supply chains, triggers security vulnerabilities during power failures, and increases the cost of specialized parts due to inflationary pressures.
Businesses and individuals who approach risk in isolation are often the most exposed. Adopting a holistic risk management framework allows us to anticipate these cascading effects and mitigate losses before they escalate.
- The double-edged sword of technology
Advanced Driver Assistance Systems (ADAS) and smart home integrations are designed to prevent accidents, but they fundamentally change the nature of a claim when an incident occurs. A simple bumper replacement now requires recalibrating sensitive sensors and software, significantly increasing both the cost and duration of repairs.
As technology advances, insurance costs rise accordingly. This adds to the financial strain many households face, making it more important than ever to ensure that sums insured are accurately updated to reflect the sophisticated nature of modern assets.
- The hidden cost of underinsurance
Underinsurance remains a recurring issue uncovered during complex claims. Many policyholders insure assets based on outdated valuations, overlooking the impact of inflation or the specific costs of business interruption.
The gap only becomes apparent when coverage falls short of the actual loss. To avoid long-term financial distress, insurance must evolve in tandem with the assets it protects through regular policy reviews and accurate valuations.
- Human behaviour and leadership culture
Beyond processes, complex claims reveal the human dimension of risk. Decisions made under pressure such as bypassing maintenance protocols or cutting costs, can have far-reaching consequences.
Conversely, strong leadership and clear communication significantly improve outcomes during a crisis. Risk management is as much about culture as it is about compliance; the organisations and individuals who fare best are those where accountability and proactive decision-making are embedded in everyday life.
- Proactive mitigation and continuity
Complex claims highlight near-misses and recurring vulnerabilities that standard data might overlook. By studying the forensic details of why a security system failed or why a building material exacerbated damage, we can provide more granular, proactive advice.
Resilience is built through practice, not theory. Whether it is a business continuity plan or a personal emergency strategy, both parties can play a proactive role in reducing risk. This shift from reactive to active protection can prevent a claim from happening in the first place.
Strengthening the risk landscape
The gap between traditional cover and reality is widening, particularly as weather events and other disruptions increase in frequency. While insurance remains a key tool for financial stability, the lessons learned from complex claims suggest that the future of protection lies in partnership.
Every claim is an opportunity to improve. By treating these incidents as feedback loops, we can refine risk models and prevent future losses. Moving forward, the goal is to lean into formal risk assessments and maintain a proactive approach to safety. This ensures that even as the world becomes more complex, our ability to navigate it remains certain.
