PSG Financial Services, the financial services group that predominantly services individuals and enterprises in South Africa and Namibia has said despite the difficult macroeconomic environment and negative global sentiment, it remains confident in its overall business resilience.
It said in a difficult environment, maximising every opportunity in a disciplined manner is crucial to attaining success.
“We value initiatives that help us focus on consistent delivery and enable us to unlock value across the group,” the group said.
CEO Francois Gouws CEO said PSG will continue to monitor local and global events and the associated impact on the group’s clients and other stakeholders, and adjust its approach if required.
Chairman Willem Theron said this year was marked by unique challenges and ongoing socio-economic volatility, with clients having constrained resources due to increased living expenditure and needing to seek alternative energy sources and, in some instances, water supply.
“In difficult times like these, good financial advice is crucial. Our Insure advisers assisted clients to keep their premiums affordable whilst containing their risk exposure.”
PSG said the board will support the executive’s strategic focus on growth and how it can be achieved despite rising inflation. Despite South Africa ‘slow growth trajectory and challenging conditions, the group said it will focus on growing our market share by providing our clients with excellent value add products and services.
“Capital was allocated to enhance the efficiency and capability of our current advisers and add new advisers to the teams. Everyone will prosper if we empower our advisers with the best skills and resources.”
In South Africa, the group said ongoing electricity outages and inadequate energy infrastructure led to increased power surge claims, largely mitigated by underwriting and pricing these claims separately in policies.
It said these claims are expected to decrease as businesses and households invest in backup energy resources and install equipment to protect their appliances from damage.
“The increased risks and economic challenges forced reinsurers to review and harden their rates. Underwriters started to factor in infrastructure collapse, becoming less prone to taking on certain risks and even cutting capacity for some events entirely,” he said.
PSG said the downstream effect of these new reinsurance challenges affected its distribution unit, as there was less capacity in the market to place certain risks.
“Most infrastructure repairs take time, affecting how insurers price their risks. Because of increased interest rates and recurring fuel increases, consumers and businesses were forced to cut back on other expenses, including insurance premiums. Our challenge was to provide adequate advice and cover, under these conditions, that our clients could afford.”
