A R6.5bn lawsuit in the wake of the 2022 KZN floods reveals how insurers are no longer willing to act as underwriters of public incompetence, especially concerning damage related to climate change.

Cast your mind back to April 2022 and the floods in KwaZulu-Natal. Infrastructure, homes and businesses buckled under severe floodwaters that caused billions of rands in damage and hundreds of deaths.

Devastating flood damage at Toyota's manufacturing and assembly plant in Durban halted vehicle production there for four months.

In the aftermath, Toyota South Africa Motors' (TSAM's) insurer, Tokio Marine & Nichido Fire Insurance, paid out -- and then turned its attention to those it holds responsible.

The Japanese insurer is now attempting to recoup a collective R6.5-billion from the eThekwini Municipality, the KZN Department of Transport and Transnet. It is claiming negligence, specifically the failure to maintain flood prevention infrastructure.

"It is important to note that the litigation proceedings are not being facilitated and/or funded by TSAM," said Tasneem Lorgat, the general manager of marketing communications at TSAM.

"Accordingly, TSAM will not benefit in any way from the subrogated recovery action against these entities."

If successful, this case could change how insurers manage climate risk and who...