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Cape fires and storms may cost insurers in excess of R4bn

07 June 2017 Plettenberg Bay. A massive fire broke out at the Kranshoek Viewpoint area just outside the coastal holiday town early on Wednesday morning. It quickly spread due to strong wind and burnt along the coast and cut inland by midday towards Cairnbrogie and the Kranshoek community. This is just one several fires which raged between Plettenberg Bay and Mossel Bay yesterday. (Photo Ewald Stander)
07 June 2017 Plettenberg Bay. A massive fire broke out at the Kranshoek Viewpoint area just outside the coastal holiday town early on Wednesday morning. It quickly spread due to strong wind and burnt along the coast and cut inland by midday towards Cairnbrogie and the Kranshoek community. This is just one several fires which raged between Plettenberg Bay and Mossel Bay yesterday. (Photo Ewald Stander)

Losses caused by Western Cape fires and storms could cost the insurance industry in excess of R3bn to R4bn‚ outstripping the costs of previous disasters and leading to higher insurance premiums in affected areas‚ said Old Mutual Insure.

On Friday‚ the death toll from severe weather and fires along the southern coastline had reached at least 12.

Knysna fires claim seventh victim

Hennie Nortje‚ head of claims at Old Mutual Insure‚ previously Mutual & Federal‚ said insurance premiums were likely to rise in the southern Cape‚ where risk of flooding had increased.

He said the R3bn to R4bn in possible losses was an estimate. Old Mutual Insure’s claims already ran into the millions‚ with initial estimates forecasting claims of more than R400m‚ Nortje said.

The aftermath: Drone captures the devastating fire damage in the Garden Route

More at BusinessLIVE

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