The 2025 Santam Insurance Barometer survey highlights a notable increase in claims activity, with 18% of consumers reporting that they had claimed against a short-term insurance policy in the past 12 months – the highest percentage since 2019. Despite this uptick, overall personal lines claims volumes decreased in 2024 compared to 2023, with motor claims continuing to dominate the landscape.
The fourth edition of Santam’s biennial Insurance Barometer was based on a survey of 881 respondents, of which 402 were consumers, conducted between January and April. These findings were overlayed with Santam’s claims experience.
The survey identified some significant trend shifts, including catastrophe-related losses because of perils such as flood and storm, alongside a turnaround in the motor hijacking claims experience and power surge claims in the household contents segment, said Atang Matebesi, the chief executive of Santam Client Solutions, and Tamuka Chiwenga, the chief pricing and underwriting officer.
Although only 8% of survey respondents reported suffering financial losses because of extreme weather events over the past two years, a significant 48% expressed being “very concerned” about this risk, with an additional 29% feeling “somewhat concerned”.
Matebesi and Chiwenga said Santam’s claims data supports this apprehension: a comparison of Q1 2024 and Q1 2025 claims for flood and storm damage on buildings policies shows a decrease in claim frequency but an increase in claims value, indicating a rise in the severity of these events.
Motor claims remain the primary driver of claims volumes. The report notes a minor decrease in claims for accidental loss or damage, such as scratches or minor accidents, as well as a decline in theft and attempted theft claims.
In contrast, claims for loss or damage because of collisions saw a significant increase. This surge is attributed to the return of pre-Covid road usage levels, because many companies have reinstated five-day office attendance policies, leading to more vehicles on the road and, consequently, more accidents.
Consumer concerns and behaviour
The survey found that consumers are most concerned about cost-of-living increases (66%), societal issues such as crime (50%), economic challenges (47%), and unemployment (35%). Burglary, mugging, and hijacking rank high among respondents’ top risks. However, as Matebesi and Chiwenga note, “consumers’ perceptions often don’t match actual claims statistics”, suggesting that media influence or unreported incidents may shape these concerns.
Despite these worries, the report highlights a growing appreciation for insurance. Only 1% of survey respondents indicated they were considering reducing their short-term insurance spending, while 25% said they would make more use of insurance products over the next two years. This shift in attitude is partly linked to insurers’ responses to major loss events, such as the April 2022 KwaZulu-Natal floods, which demonstrated the critical role of insurance in financial recovery.
Impact of cost-of-living challenges
The cost-of-living crisis is reshaping how consumers approach insurance. More than eighty percent of personal lines consumers have made lifestyle adjustments to manage rising expenses, a trend reflected in their insurance choices. Many are opting for essential covers only, part-insuring assets, or raising excesses to lower monthly premiums. Additionally, 36% of insured individuals (up from 29% in 2023) are trying to reduce their premiums by installing tracking or monitoring devices (13%), combining motor and home covers (12%), or driving less (11%).
These adjustments underscore the financial pressures consumers face, while also indicating a strategic approach to balancing affordability with adequate protection.
Vehicle theft and recovery
The previous Insurance Barometer flagged an alarming rise in the theft of keyless vehicles and high-value SUVs, particularly in border towns such as Limpopo, Mpumalanga, KwaZulu-Natal, and North West, as well as in Gauteng.
Encouragingly, the 2025 report notes a decrease in both hijacking and theft claims. This improvement is largely because of effective underwriting interventions, such as the use of multiple tracking devices in high-value vehicles. Although these measures do not prevent theft entirely, they significantly increase the recovery rate of stolen vehicles.
Property Claims and Maintenance
In the property segment, geyser claims continue to dominate personal lines insurance. Despite risk management interventions – such as early detection devices and overflow trays – claims for loss or damage to geysers, water containers, tanks, or pipes increased in 2024.
Matebesi and Chiwenga explain that geyser claims are cyclical, often spiking as installations age and warranties expire, with South Africa’s intermittent water supply also contributing to the trend.
Financial pressures are leading to deferred maintenance, with a rise in weather-related claims linked to neglected building upkeep. For instance, Santam has seen an increase in claims because of flood, storm, and wind damage, often exacerbated by poorly maintained gutters or flat roofs. From 2023 to 2024, claims volumes for these perils rose, while hail claims declined.
To address flood risks, Santam has deployed geocoding and geo-mapping technology to assess risk accumulation and, in extreme cases, limited cover in high-flood zones lacking sufficient mitigation measures.
The normalisation of the electricity supply in late 2024 has reduced fire claims, as households no longer rely on candles or lamps during power outages. A 346-day reprieve from loadshedding – from late March 2024 to early March 2025 – has also led to a significant decrease in power surge claims, aided by more rigorous claims assessments by engineers.
However, the growing adoption of solar panels to mitigate loadshedding has introduced new risks. More than a third of consumers surveyed have installed solar systems, and claims related to these assets are increasing. Insurers are now adapting their underwriting processes to better track and manage these emerging exposures.
Emerging risks: cyber threats
One of the most striking findings in the 2025 report is the disconnect between consumers’ awareness of cyber risks and their insurance uptake. Although 81% of respondents expressed concern about future cyber threats, only 2% have purchased cyber insurance. This gap is particularly concerning given South Africa’s high ranking on the global cybercrime density list, where it placed 5th in a 2023 report by cybersecurity firm Surfshark.
The report emphasises the need for personal lines cyber insurance products to address everyday digital risks, such as social media hacking, data loss from malware, and bank or credit card theft. As cyber threats grow more complex, the insurance industry faces a clear market gap that requires attention.