Your shield against the unexpected: why insurance still matters

TimesLIVE

07-07-2025

About 70% of South African motorists are either not insured or underinsured, leaving them financially exposed in the event of an accident, theft, or natural disaster. Affordability is a big hurdle — but just as concerning is how many people still don't realise how important insurance is for staying financially secure when life takes an unexpected turn.
Burton Naicker, CEO of Miway Insurance, believes that addressing this protection gap begins with greater awareness. 'South Africans face increasing financial vulnerability, compounded by high unemployment and low insurance penetration. It's up to the industry to shift perceptions and show the real value of insurance in people's everyday lives.'
The real protection gap
SA's short-term insurance gap refers to the difference between what individuals or businesses could lose during an insurable event, such as a flood, car accident or burglary, and the portion of those losses that are insured. Small businesses and low-income households are especially affected, often operating with minimal to no protection.
According to Naicker, the issue is twofold. 'There's one group of people who could technically afford insurance but choose not to, often because they think it costs too much. Then there's a much larger group who simply can't afford full coverage at all. In both cases, there's often little understanding of how customisable insurance can be made affordable.
'People view insurance as a luxury, something that can be cancelled when there is financial pressure. The reality is that most accidents and losses are caused by things out of your control, like someone else's poor driving, infrastructure failures or extreme weather conditions,' he says. 'That's why cover still matters.'
Tailored cover is better than none
Without a savings buffer, South Africans risk long-term setbacks if their vehicles or homes are damaged or destroyed. For small business owners, it could mean the collapse of a livelihood built over years.
The economic knock-on effects are also significant. 'If a small business has no cover and suffers a major loss, it can't serve its customers, pay staff or contribute to the economy. The ripple effect is serious,' says Naicker. 'That's why I believe insurance should be treated as a basic cost of doing business — something that gets built into your pricing from the start.'
Miway encourages people to explore flexible insurance options that suit their budget and needs. 'Especially during revolving life changes, we encourage you to keep your assets covered,' says Naicker. 'Your monthly premium can be reduced by increasing your excess or choosing a lower level of cover. It's always better to have some cover than to have nothing at all.'
Insurance: smart protection for a changing world
The nature of risk is also evolving, with extreme weather events becoming more frequent and severe. The record-breaking April 2022 floods in KwaZulu-Natal, for example, caused billions in damages. Add to that the ongoing threat of load-shedding, which can lead to power surges damaging appliances and compromised security systems.
At a time when every rand counts, Miway's new Micashback is a meaningful reward that puts real cash back in people's pockets
'[While cover from the government-owned] South African Special Risks Insurance Association plays a critical role in protecting against damage caused by risks such as civil unrest, looting, and strikes, it is vital for consumers to understand that this cover is only accessible through their existing personal or business insurance policies,' says Naicker.
At Miway, adapting to this changing risk landscape means offering insurance that is not only relevant but also rewarding. The company recently launched Micashback — a smart new feature that gives customers 10% of their premiums back after two straight years without a claim. At a time when every rand counts, it's a meaningful reward that puts real cash back in people's pockets.
'Insurance shouldn't feel like a grudge purchase,' Naicker adds. 'It should be a tool for rebuilding and recovery, and where possible, and it should reward positive behaviour as well.'
Time to reassess
The recent National Insurance Awareness Day (June 28) serves as a reminder for South Africans to take a moment to reflect and review their policies, says Naicker. Whether you've bought a new car, renovated your home or started a side hustle, your policy should keep up with your lifestyle.
Rather than cancelling insurance altogether when times are tough, it is best to speak to your insurer about how to make it more affordable
Burton Naicker, CEO of Miway Insurance
'People's lives change all the time — you move into new jobs, start side hustles, or take on new financial responsibilities,' he says. 'Your cover should change with you. Rather than cancelling it altogether when times are tough, it is best to speak to your insurer about how to make it more affordable.'
He adds that Miway continues to revise and expand its product range to meet different customer needs. 'Our policy structure is designed to offer real flexibility — drop cover, add cover, adjust your excess — all to help customers stay insured through different life stages.'