property development financier, although they
generally don’t fund residential projects.
Santam only works with reinsurance partners
that are A-rated in the international community.
This is important for financiers, since it
reassures them that the company will always be
able to pay in the event of a legitimate claim.
Into the future
Santam is currently also developing a product
for the needs of lesser-known and smaller
developers. This is significant because of the
country’s growing housing needs – especially
in the retirement housing market, and at the
lower end of the general housing market.
A similar insurance product for these
sectors will facilitate the supply of housing
at these levels.
By underwriting both equity and project risks,
this product will increase access to funding
for small developers, which will help to
create much-needed housing for an as yet
undersupplied market.
And that sounds like a win-win situation.