We know from 2025 that risk rarely stands still. As businesses plan for the year ahead, insurance should be aligned to where the business is going, not where it has been.
South African businesses are entering the new year with cautious optimism. The RMB/BER Business Confidence Index (BCI)[i] rebounded in the final quarter of 2025 to 44 – its highest level for the year and three points above the long-term average, while a stronger rand and easing global oil prices contributed to South Africa’s first fuel price cut of 2026[ii].
South African businesses have come through a year marked by sustained pressure and heightened uncertainty. Supply chain fragility, rising fuel costs and geopolitical instability all had a direct impact on operational planning and financial sustainability.
At the same time, climate-related events continued to disrupt business as usual. For some businesses, repeated weather-related interruptions resulted in extended downtime and pressure on cash flow.
Infrastructure deterioration further compounded these challenges. Poor road conditions increased vehicle damage and accident claims, while inefficiencies at ports and along rail corridors delayed imports and exports. Water supply interruptions and municipal service failures also emerged as a growing operational risk, particularly for businesses reliant on continuous production processes.
If local businesses are to take any lessons from 2025, it is the critical role of insurance as part of broader financial and risk planning. Businesses that regularly reviewed their cover, stress-tested their exposure and adjusted sums insured in line with rising replacement costs were better equipped to absorb shocks.
Furthermore, the businesses that navigated last year most effectively were those that engaged with their insurers as risk partners, not just claims payers. That dialogue made it possible to identify gaps, adjust cover and put risk mitigation measures in place before losses materialised.
Looking ahead to 2026, risk management is set to become an even more integral part of business strategy. Confidence levels may be up, but economic uncertainty is expected to persist. We believe this will require a more deliberate approach to insurance planning. Businesses should be prioritising regular policy reviews, realistic valuations of assets and a clear understanding of their most material risks. This includes considering business interruption cover, contingent supply chain risks and the impact of downtime on revenue.
As operating models evolve and budgets remain under pressure, businesses will increasingly look for insurance solutions that can adapt to changing circumstances without compromising core protection.
We know from 2025 that risk rarely stands still. As businesses plan for the year ahead, insurance should be aligned to where the business is going, not where it has been. That means building resilience, protecting cash flow and ensuring that when disruption does occur, recovery is swift and sustainable.
[i] https://dailynews.co.za/business-report/companies/2025-12-03-business-confidence-rebounds-in-q4-as-sentiment-lifts-across-most-sectors/
[ii] https://www.bizcommunity.com/article/south-africa-kicks-off-2026-with-a-fuel-price-cut-849353a
