The winds of change

Easy guide to tax free savings accounts “TFSA”.
March 9, 2018
Should you be investing offshore?
March 12, 2018

The winds of change are blowing across South Africa.

The peaceful removal of Jacob Zuma and the appointment of Cyril Ramaphosa as our new president have brought fresh hope and optimism to the country.

However, the winds of change are not limited to just the politics of the country.

FPM has a new look, the VAT rate has been increased for the first time in 25 years and the winds of climate change are also blowing across the country.

The eastern half of the country has had above average rainfall while the western half suffers a debilitating drought, and this for the last few years. Powerful storms with hail stones the size of golf balls are becoming more frequent with localised flooding causing extensive damage to property and resulting in the unfortunate loss of life. The ongoing drought was a contributing factor to the Knysna and Plett fires that cost the insurance industry somewhere in the region of R4 Billion last year.

New York experienced its coldest winter in 50 years this last winter whilst in 2017, according to climatologists, was the seconded hottest year on record.

The reality is that climate change is likely to impact on short term insurance premium levels as the international reinsurance market puts pressure on insurers to increase rates to counter the frequency and magnitude of catastrophic weather-related losses.

But it is not all doom and gloom. FPM Short Term Insurance Brokers have got your back.

Whether it is the over-abundance of water in your backyard that is causing a problem or hail that has left your car looking like it has a bad case of cellulite, weather is going to impact you negatively at some point. The team at FPM is here to help.

As President Cyril Ramaphosa said at the close of his State of the Nation address – “Send me”.

Send me – Send FPM

Rodney Caruana
Managing Director
FPM Short Term Insurance Brokers
rodney@fpm.co.za
011 778 9300

 

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)