Why South Africa’s Transport Industry Needs to Rethink the Value of Insurance

South Africa’s commercial transport sector keeps the economy moving, from minibus taxis carrying millions of commuters daily to buses and freight trucks supporting the movement of goods across the country.

Yet despite the sector’s critical role, many fleet operators continue to view insurance as a costly requirement rather than a tool for protecting business continuity.

The challenge, according to industry experts, is not simply a lack of trust in insurers. Instead, it is a broader issue around how insurance value is understood within an industry already facing rising operational pressures.

For transport operators, keeping vehicles on the road is the priority. Increasing fuel costs, maintenance expenses, crime risks, accidents and operational delays all place pressure on businesses where downtime can immediately impact income.

Research estimates that minibus taxis account for close to 70% of South Africa’s public transport trips, highlighting how deeply commercial transport is connected to the daily functioning of the economy. However, the same businesses that provide essential mobility are also exposed to significant risks, including vehicle theft, hijackings, collisions and costly interruptions.

For many fleet owners, insurance is often viewed as another monthly expense rather than a mechanism that protects long-term operations.

This perception creates a challenge for the industry, particularly as commercial transport becomes increasingly complex. Beyond repairing or replacing vehicles after incidents, insurance can play a role in protecting livelihoods, drivers, passengers and the wider businesses dependent on reliable transport.

The issue, however, is that statistics alone will not close the gap between insurers and operators.

A stronger relationship requires clearer conversations around what insurance covers, how claims work and how the right solutions can reduce the financial impact of unexpected events.

According to CTU Underwriting Managers, improving understanding around insurance requires closer collaboration between insurers, brokers and fleet owners.

The company believes brokers have an important role to play, as many operators rely on them as trusted advisors when navigating insurance decisions. Simplifying industry language and focusing on practical operational challenges can help create stronger confidence among transport businesses.

The relationship between insurers and commercial transport operators has historically often been centred around policy purchases and claims.

However, the industry argues that stronger engagement needs to happen before an incident occurs.

By working more closely with operators, insurers and brokers can provide better education around risk management, cover structures and the financial consequences of vehicle downtime.

CTU Underwriting Managers says its approach focuses on making insurance discussions more accessible by engaging with taxi, bus and trucking operators to better understand their challenges and align solutions with real-world conditions.

The focus, the company notes, should not only be on selling policies but on helping businesses make informed decisions that support long-term sustainability.

For an industry built around people, vehicles and livelihoods, insurance remains an important part of creating resilience.

South Africa’s transport sector operates in an environment where unexpected disruptions can have immediate consequences. A stolen vehicle, major accident or extended repair period can affect not only an operator’s income but also the communities that rely on these services.

The future of commercial transport insurance will depend on moving away from transactional relationships and towards partnerships built on transparency, education and shared understanding.

As the sector continues to evolve, the opportunity lies in ensuring insurance is no longer viewed as a grudge purchase, but as an essential tool for protecting the businesses that keep South Africa moving.