The SAIA backs consolidated infrastructure risk management to guarantee water access

The non-life insurance industry believes the continuing debate about municipal water infrastructure would benefit from the sector’s expertise in identifying and mitigating risk.

Nico Esterhuizen, General Manager, Insurance Risks at the South African Insurance Association (SAIA), says World Water Day this past Friday (22 March) is an opportune moment to reflect on the emerging challenges in maintaining South Africa’s ageing fresh water infrastructure.

World Water Day is an annual United Nations observance day that highlights the importance of freshwater. The day is used to advocate for the sustainable management of freshwater resources.

Esterhuizen says that South Africa needs a consolidated and strategic approach to ensure success is achieved to meet the United Nation’s goal of providing access to fresh water to everyone in the world by 2030.

“It is now more critical than ever critical that we appreciate the role that maintenance of infrastructure will play in ensuring this objective can be met,” he says.

The provision of clean and accessible water is key to a country’s economic development, its environment and the health of its citizens. The failure to maintain water infrastructure can have devastating consequences, says Esterhuizen.

He notes that the recent and continuing challenges at the Rietspruit and Sebokeng waste water treatment plants demonstrate the consequences of not maintaining infrastructure. Repairing or replacing these waste water treatment plants will cost billions of rand, excluding the cost of the environmental consequences of the leakage of raw effluent into the Rietspruit and Vaal rivers.

“Right now, we need strategic risk-maintenance management interventions by all stakeholders to anticipate and mitigate potential challenges to our water supply. We need the joint and collaborative involvement of the private sector with national, provincial and local government,” says Esterhuizen.

He says the non-life insurance sector is not only expert at insuring risks but, more importantly, boast considerable expertise in early identification of risks and advising customers on mitigation to avoid potential losses.

This includes working with municipalities to put in place plans to maintain aging infrastructure and ensure its long-term longevity, says Esterhuizen.

“Our members stand ready to assist existing or potential clients to assess their risk profiles and to create a robust risk management regime.

“This risk and management regime can reduce insurance premiums and, critically, ensure that the risks their policies carry are not jeopardised due to poorly maintained infrastructure. At a minimum, municipal infrastructure must adhere to the Occupational Health and Safety Act and national building regulations.

“Implementing and adhering to a proactive risk and maintenance management regime is a critical foundation to ensure that we have reliable infrastructure to provide South Africans with clean and accessible water. The ability to identify risks ensures that the necessary resources are made available at the right time to deal with infrastructure challenges. says Esterhuizen.