SAIA continues to lead the way in identifying and promoting solutions to close South Africa’s persistent protection gap. In a society marked by deep inequality, those most vulnerable to economic shocks are often the least protected. The insurance sector is therefore not only vital for economic growth but also for safeguarding livelihoods. 

For SAIA, closing the protection gap and promoting inclusive insurance have long been strategic priorities. The protection gap is defined as “the difference between total economic losses and insured losses.” The Global Federation of Insurance Associations (GFIA) identifies four critical areas where this gap is most pronounced: pensions, cyber risk, health, and natural catastrophes (NatCat).

Natural catastrophe (NatCat) risks are increasing due to climate change, and addressing them is closely linked to global climate initiatives, such as the Just Transition and COP processes. While early warning systems have helped decrease fatalities, damage to property and livelihoods remains significant. Greenpeace research estimates that South Africa could face GDP losses of between R217 billion and R651 billion by 2050. The devastating KwaZulu-Natal floods of April and May 2022, the country’s most severe NatCat event recently, highlighted the urgent need for action.

Addressing the protection gap is an ongoing and vital effort that requires collective action. As South Africa prepares to host the G20 Summit in November 2025, global momentum on this issue continues to grow. The G20, along with the World Bank and the International Association of Insurance Supervisors (IAIS), has recognised closing the protection gap as a shared priority essential for the financial health of both global and local economies. Earlier this year, a dedicated side event for finance ministers and central bank governors highlighted its urgency. In line with the G20 Sustainable Finance Working Group (SFWG), these discussions reaffirmed that narrowing the protection gap is crucial to strengthening financial resilience and safeguarding global economic stability.

SAIA has played a crucial role in promoting this agenda both locally and internationally. Through continuous advocacy and collaboration with the World Bank, National Treasury, South African Local Government Authority (SALGA), municipalities, and other stakeholders, SAIA has established itself as the voice of South Africa’s non-life insurance sector. These efforts, supported by SAIA’s extensive consumer education programmes, show a unified approach to ensuring protection reaches those who need it most.