South Africa's largest short-term insurer, Santam, released its annual Insurance Barometer report on 8 September 2021. The report showed the impact of the COVID-19 pandemic and the challenging macro-economic environment on consumers and corporates.

Key consumer insights:

• 60% of respondents had experienced financial loss during the pandemic either from a loss of earnings or increase in costs
• 81% of those who experienced financial loss were able to use savings to make ends meet
• Consumer spend was drastically reduced:
  • 59% reduced restaurant outings / food takeaways
  • 45% reduced spend on travel / petrol, clothing, footwear and accessories
  • 33% cut hobbies, sports and gym expenditure
  • 28% reduced their groceries bills
  • 23% cut TV subscriptions
  • 19% reduced domestic travel
  • 15% cut back on cellphone contracts
  • 10% reduced their repayment of debt including school fees

Key corporate insights:

• Hospitality, transport, aviation, marine and construction were the hardest hit sectors in South Africa
• 62% of corporate & commercial entities have lost profits. On average, profits declined by 38% in SMEs, by 36% in large commercial and by 24% in large corporates
• 28% of corporates had to retrench staff and 30% put staff on partial pay. Another 11% of corporates compelled staff to take unpaid sabbaticals,
• 41% of hospitality sector enterprises were faced with business closure, 84% lost profits and 59% made staff retrenchments,
• 80% of transport sector businesses had profit losses compared to 77% of construction companies
• Only 3% reported an increase in profit this year (mainly SMEs)
• 3% filed business interruption claims, 2% business all risk claims, 2% for accidental damage, 2% theft, 2% buildings, 1% vehicles, 1% public liability, 1% machinery breakdown.