Africa’s Growing Luxury Market: The Role of High-Net-Worth Insurance
With Africa’s millionaire population set to rise by 65% over the next decade, the continent is emerging as a key growth market for global luxury brands.
1 March 2025
What to know before you go
As South African outdoor families continue to celebrate the summer holidays, 4×4 enthusiasts may be preparing to have off-road adventures, from, for example, the rocky trails of the Baviaanskloof to the iconic switchbacks of Sani Pass.
According to Tarina Vlok, Managing Director at Elite Risk Acceptances, a high-net-worth insurer and subsidiary of Old Mutual Insure, while exploring rugged terrain is thrilling, it often comes with heightened risks.
“Before you set off, it’s important to understand that not all damages associated with off-roading may be covered by insurers, particularly if these happen to your vehicle while on Grade 4 and 5 trails,” says Vlok.
Common issues include suspension and undercarriage damage caused by uneven surfaces, hidden rocks, or debris. Collision with wildlife on a mountain trail causing front-end damage or other issues is also likely. Rollovers caused by steep inclines or uneven ground is also a possibility, especially if the driver loses control. Water crossings pose another challenge, potentially causing engine hydrolock or electrical failures. Getting stuck in sand, mud, or water is a common occurrence on 4×4 adventures, leading to costly recovery efforts. While some policies include towing and recovery costs, this is often an optional add-on or part of specialised 4×4 insurance packages.
“Typically, standard policies require an additional premium for 4×4 cover – which usually includes some increased extension limits, expanded territorial limits, and additional extensions like winching equipment – however, it is often best to speak to your insurer before you head off to understand your unique exposure to risks,” says Vlok.
She says that specialist insurers may already provide insurance for 4×4 trails if the vehicle is comprehensively insured, however they are likely to require that any modifications to a vehicle must be disclosed for underwriting purposes to ensure accurate cover.
“Trail grading plays a key role in determining the difficulty of a route and the level of preparation required,” she says, adding that some insurers may not provide cover if things go wrong on a trail graded at levels 4 or 5. “If you’re planning to take on these extreme routes, consult your broker or insurer first.” Below is her quick guide to understanding what this entails:
Below are Vlok’s top tips for off-road enthusiasts:
“For happy outdoor travels, preparation and caution can go a long way to help you enjoy your adventures confidently and responsibly,” concludes Vlok.
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