A sense of what’s to come – Innovation, Perception, and the Politics in between

By Sabine Kroll for Yard Insurance

Ahead of our 2024 general elections, the country, businesses, and insurers, braced for nationwide civil unrest. The internet was awash with predictions of looting, violence, and intimidation.

Our CEO, Farad Kajee, sees things differently.

“The one thing that looting taught all of us, is that South Africans don't want unrest.

The looters did not expect the ordinary citizens to protect suburbs. They did not expect taxis to protect malls. They thought the whole lot was going to jump up and burn everything down. And that didn't happen.

We need to be cautious around this negative view, because South Africans in all their colours stood up and said: “We don't want this”.

We must have more faith in ourselves, in the faith of our society.”

Q: In light of the sociopolitical climate of South Africa, what advice would you give entrepreneurs embarking on a new journey in innovation?

“There is a positive intent being expressed by political parties to get going.

There is also an admission by most political parties that the private sector is crucial to enabling government to deliver.

The critical success factor is that if government has openly admitted that private sector involvement is crucial to both rebuilding and growing South Africa, then that in itself should open up doors for entrepreneurs.

If you take the expressed intent of the government of national unity to fix this country, and you take the admission that private sector is really crucial to getting this economy going, I think that should give courage and energy to entrepreneurs to pursue their various product ideas.

Use this as a catalyst to go for it. Don't hold back on your big thinking.

And you have to sell, develop or create a product or service that is relevant and needed.

I believe that entrepreneurs, mid-sized companies, and single entrepreneurs are going to make this country work.”

Q: Do you feel that our shifting political landscape will turn things around for South African business?

“The reality is, for a country to work all citizens and people that live here, have to get involved in building it. A big part of the US’ success is that the citizens get involved in driving charities, in driving hospitals - not the government.

The bottom line is, citizens of a country have to be actively involved in building the country.

For this to work, everybody has to get involved.”

Q: Do you feel the current political climate is impacting the Re/insurance industry differently to other sectors?

“I think it's impacting business all the same way.

If you had to look at the Insurance or Reinsurance industry, it's no different to any other industry in South Africa that has experienced severe pressure from both a lack of economic growth, a rising inflation, rising cost of goods, global events like the Ukraine war, climate change, and maybe Israel and other events.

For the last three years, we’ve had issues around looting, flooding, and COVID. Three major events that have occurred in the South African Insurance and South African economy.

That has affected almost everybody.”

Q: How do you feel the formation of a Government of National Unity has impacted the insurance industry, and the economy, in the short and long-term?

“My hope is that the Government of National Unity will now start addressing all the systemic issues that face the industry and the economy as a whole.

If you take anything from our recent elections, on the face of it, having a government of National Unity is actually going to ease the pressure and make it better for the Insurance or Reinsurance industry.

There is a stated intent to fix things up, to get things working, to do service delivery, to create jobs, to provide power security, and to provide food security.

All of those things will impact the insurance industry in a very positive way and give some hope to an industry that has clearly suffered the most, given the impact of Covid, looting, and flooding in recent years.

The hope is that this government of National Unity will be able to address all the structural issues.  All the issues that have actually held us back as a country. And if it starts addressing that, then the Insurance industry is significantly positively impacted. And it could be a long-term thing.

Because insurance is a long-haul business.”

Are South Africans more positive that we think?

In all likelihood we are. More capable, unified, and empowered too. And backed by an increasingly supportive political landscape, South African entrepreneurs, and citizens in general, have much to look forward to in coming years.