Winter risk for complex portfolios

As winter sets in and South Africa continues to face increasingly severe weather-related events, now is a critical time to reassess your personal risk landscape.

For individuals with complex asset bases and lifestyle portfolios, ensuring insurance strategies reflect true replacement values – and broader exposure – is essential to preserving long-term wealth.

Insights from Aon’s latest “Climate and Catastrophe” report highlight a persistent protection gap, with approximately half of global economic losses remaining uninsured. Events such as the June 2025 floods in the Western and Eastern Cape – where rivers surged dramatically, displacing communities and damaging infrastructure – underscore how quickly environmental risk can translate into material financial loss.

“For high-net-worth clients, risk extends beyond a primary residence to include multiple properties, high-value contents, vehicles and alternative energy investments,” says Michael Whitehead of Aon South Africa. “A comprehensive, regularly updated view of your total asset base is fundamental to ensuring appropriate protection.”

A key consideration in this context is underinsurance. Where insured values do not accurately reflect replacement costs, insurers may apply proportional settlement at claims stage, potentially leaving significant shortfalls. For high-value portfolios, even modest miscalculations can result in substantial uncovered losses, particularly when factoring in bespoke finishes, imported materials or specialist assets.

Rather than focusing solely on individual risk mitigations, high-net-worth clients benefit most from a co-ordinated, advisory-led approach.

This includes:

• Holistic asset valuation: Ensuring all properties, contents and associated assets are professionally valued and regularly updated to reflect current market conditions and replacement costs.
• Integrated energy risk planning: As solar installations, generators and other alternative energy solutions become standard, these should be seamlessly incorporated into both risk assessments and policy structures, with compliance and certification carefully managed.
• Infrastructure resilience: From water systems to structural integrity, proactive planning that is guided by specialists, can reduce exposure to seasonal risks such as freezing temperatures, flooding and fire hazards.
• Continuity planning: Beyond physical assets, consideration should be given to lifestyle continuity, including appropriate alternative accommodation cover and access to trusted service providers in the event of disruption.
• Motor and mobility assets: High-value and specialist vehicles require tailored cover that reflects usage, value fluctuations and environmental risks, particularly during adverse seasonal conditions.

Importantly, the role of a broker evolves significantly at this level. Rather than transactional policy placement, the focus shifts to ongoing strategic advisory – ensuring cover evolves in line with lifestyle changes, acquisitions and emerging risks.

“High-net-worth insurance is ultimately about balance sheet protection,” adds Whitehead. “It’s not just about replacing what’s lost, but about structuring cover in a way that preserves financial stability and lifestyle continuity, even in the face of increasingly volatile risk conditions.”

As climate-related events continue to intensify, an annual – or even more frequent – review of insurance structures is no longer optional. A tailored, forward-looking approach, supported by expert advice, ensures complex portfolios remain resilient, responsive and fully aligned to the realities of today’s risk environment.