When OUTsurance introduced its Cash OUTbonus in 1998, cashback rewards were a novel way of encouraging policyholders to remain claim-free. Nearly three decades later, South Africa’s largest short-term insurer has entered the cashback arena.
Santam has launched a cashback programme for qualifying personal lines policyholders, becoming one of the country’s major insurers to reward claim-free customers with direct cashback.
Under the Santam CashBack Programme, qualifying personal lines policyholders who maintain their cover and remain claim-free will receive a cashback equal to 10% of the premiums they have paid.
The first cashback payment becomes available after an initial three-year claim-free period. Thereafter, qualifying policyholders will receive an annual cashback reward equal to 10% of the premiums paid during each additional claim-free year.
The programme is available to new and existing Santam personal lines policyholders. For qualifying products, the cashback benefit period starts automatically from the policy commencement date or 1 July 2026, whichever is later.
According to Atang Matebesi (pictured), the chief executive of Santam Client Solutions, the programme was developed after customers told the insurer that insurance often feels like an unavoidable expense with little visible benefit during claim-free periods.
“We’ve heard our policyholders loud and clear. We recognise that times are tough, and while insurance is essential, it can feel like a grudge purchase with no upside beyond claim payments. We want to be there for our clients when life happens, and they need us most. However, we also want to give them something in return when nothing happens.”
Matebesi said the programme was designed to reward responsible risk management by converting disciplined, claim-free behaviour into a tangible financial benefit.
“The longer you remain claim-free, the more value you unlock, with continued rewards each year.”
Cashback rewards are not new to the South African insurance market, although the way insurers reward customers has evolved considerably over the past two decades.
OUTsurance pioneered the concept locally with its Cash OUTbonus, rewarding policyholders who remain claim-free over a specified period. More recently, insurers have adopted different approaches to encouraging customer loyalty and lower-risk behaviour.
Discovery Insure and Momentum have introduced telematics-based programmes that reward safer driving, while newer digital insurers such as Pineapple have focused on usage-based incentives for motorists who spend less time on the road. The different approaches have broadened the range of benefits available to policyholders beyond the traditional claim-free cashback model.
Santam said its cashback programme is only the first phase of a broader customer rewards strategy. The insurer plans to expand the programme over time to include additional rewards and value-added benefits.
Two decades ago, the relationship between insurer and policyholder was largely transactional. Premiums were paid, and claims were submitted when losses occurred. Today’s products increasingly include rewards for safe driving, lower vehicle usage, claim-free periods, and other behaviours aimed at reducing risk.
With Santam now offering cashback alongside several of its competitors, customer rewards have become another established feature of South Africa’s short-term insurance market.
