Santam has assured clients policies will be reviewed individually before any premium increase and that no across-the-board premium increases will be imposed.
The short-term insurer was reacting to recent media reports that the high incidence of fraudulent claims being experienced at present could result in honest consumers having to bear the brunt of above-average premium increases.
Christelle Fourie, Santam's head of personal lines underwriting, said that as far as possible clients would not be penalised.
"Our entire philosophy is based on the concept of risk management. This means that where clients understand the risks and take steps to reduce them, we will reward them with lower increases on their premiums.
"Since risk management is a personal lifestyle option we prefer to apply increases on an individual basis," Fourie said.
Her advice to clients is to review risks on a regular basis and consult a broker.
"With motor insurance the huge increase in repair costs, among other factors, will inevitably result in premium increases," she said.
"But consumers can influence rate increases by realising that the value of a vehicle depreciates and to adjust the insurance value accordingly.
"With non-vehicle insurance clients can take any number of risk improvement measures that will ensure that rate increases are contained, provided the improvements are noted on their policies."
She suggests that clients should consider restructuring or reducing cover rather than foregoing all cover.
"Restructuring might involve a voluntary increase in excess in order to qualify for a substantial discount on various policy sections.
"It might be appropriate to investigate reduced cover on vehicles, such as third party only cover or third party fire and theft."