Johannesburg – As South Africa’s energy landscape undergoes a dramatic transformation, new challenges emerge on the horizon. A recent article by Lameez Omarjee, published on September 15, spotlighted a remarkable trend: South Africa imported an entire Eskom power station’s worth of solar panels from China in just six months of 2023. While these numbers illuminate the nation’s resolute march towards sustainable energy, Christelle Colman, CEO of Ami Underwriting Managers, urges the insurance sector to delve into past lessons, particularly from the motor industry, and brace for potential challenges, such as hailstorms.
The import of 3.4GW of solar panels, equivalent to the capacity of Eskom’s Duvha or Matla power stations, signifies a monumental shift. But with this green transition comes vulnerabilities. The haunting memories of the 2013 Gauteng hailstorm serve as a stark reminder of nature’s unpredictability. As rooftops across the nation become adorned with solar panels, the potential for large-scale damages during similar natural calamities becomes a pressing concern.
“Omarjee’s report paints a vibrant picture of our South Africa’s dedication to green energy,” states Colman. “Yet, the burgeoning solar industry might have something to glean from our motor insurance sector. Recall the aftermath of 2013’s hailstorm – motor insurance claims surged, revealing not just the immediate damages but also unmasking the logistical challenges tied to mass claim processing, repair delays, and customer distress.”
Load shedding and governmental incentives have catalysed the solar panel boom. But the potential fallout from a major hailstorm event could echo the disruptions witnessed in the motor insurance sector. An inundation of claims, assessing damages, sourcing replacement parts, and managing customer expectations all come into play.
Colman elucidates, “Solar panels, much like cars, are significant investments for homeowners. The aftermath of a hailstorm isn’t just about immediate physical repair. It’s about the economic repercussions, the strain on the supply chain, potential energy disruptions, and the emotional toll on homeowners. The motor insurance industry faced these multi-faceted challenges post-2013, and the solar sector must prepare for similar eventualities.”
For homeowners, protective measures are more than just a suggestion; they’re a necessity. Drawing parallels with motor vehicle protection, Colman recommends, “Just as car owners invest in protective covers or park in garages to shield their vehicles from hail, homeowners must consider proactive protective measures for their solar installations. This includes protective layers, durable covers, and strategic installation angles.”
But the onus doesn’t lie with homeowners alone. The insurance sector must evolve and adapt, anticipating the unique challenges that come with protecting vast arrays of solar panels. “The motor insurance sector underwent rapid adaptations post-2013, from streamlining claim processes to customer education. As solar installations become commonplace, our industry needs a similar urgent evolution, tailored to the nuances of solar protection,” adds Colman.
As cities like Cape Town and Johannesburg champion green energy and as governmental incentives spur solar installations, the insurance sector stands at a pivotal juncture. Collaborations with stakeholders, investment in research, and a proactive approach to policy adaptation are paramount.
Colman concludes, “South Africa’s commitment to a greener future underscores our nation’s innovative spirit and resilience. But with the approaching hail season in Gauteng and the looming El Niño forecast, the stakes are heightened. Our vision isn’t solely about harnessing the sun’s power; it’s about safeguarding that power against nature’s unpredictability. Now, more than ever, insurers must collaborate, adapt, and prepare to ensure that our green energy journey remains steadfast and uninterrupted.”