In South Africa, the short-term insurance (STI) industry has made record profits during the pandemic. Companies therefore no longer have a reason to further delay the settlement of all outstanding claims for business interruption due to Covid-19.

A study by Dr. Roelof Botha, economic advisor to Optimum Investment Group, and Keith Lockwood of the Gordon Institute of Business Science, reveals that many insurers are slow to pay commercial claims during the pandemic, while others have already ex& eacute;cutés. This document published on July 6, 2021 focuses on the wide disparity between the substantial financial gains made over the past year by short-term insurers and their customers. According to the report, total premiums received in 2020 rose 2.2% to a new record of R130 billion ($9 billion), while unallocated profits jumped more than 20% to a new record of R53.5 billion ($3.7 billion), and total assets by 12% to R220 billion ($15.2 billion). Dr Botha stressed the importance of prompt payment of these claims for the survival of small businesses, some of which are forced into bankruptcy in the event of lengthy legal proceedings that follow the appeal route.