##pedite the claims process and to ensure economic activity was restored. unfortunately, not all businesses have resumed to full or even partial activity following the riots. of concern was the significant number of affected businesses that were uninsured or under - insured and many were forced to shut down their operations. it is estimated that close to two million people were left unemployed by the july 2021 riots. this highlights the concerns around the insurance protection gap. in light of this, i would like to challenge this sector to develop products that will enable better protection and to ensure economic recovery post events of this nature. some learnings from these events, and which require further work include : • improved consumer education initiatives that clearly spell out what is covered and what is excluded under an insurance policy ; • clear proposals to address the insurance and risk protection gap, not only as a sector but also in partnership with the government ; and • the development of insurance products and solutions that take into account this changing landscape. the current economic outlook the domestic economy experienced rapid growth during 2021, after a sharp contraction in 2020. despite the steep contraction in gdp during the third quarter of 2021 due to the riots in kwazulu - natal, the domestic economy grew by 4. 9 % during 2021. gdp growth which would have surpassed pre - covid - 19 levels in the first quarter of 2022 was hampered by the january and march 2022 floods in kwazulunatal, the sharp correction in commodity prices and intensified load - shedding. the sarb forecasts gdp growth of 2 % in 2022 and 1. 3 % in 2023. global inflation has been on the rise since the first quarter of 2021, largely driven by the recovery in the oil price and consumer demand since the low levels experienced during the pandemic. inflationary pressures were exacerbated by the renewed lockdowns in china as well as the war in ukraine. this not only heightened uncertainty but also caused supply bottlenecks and disrupted food and energy markets. as a result of the combination of these adverse shocks, global growth is projected to slow down. central banks in advanced economies have begun with policy normalisation as they potentially face double - digit inflation over the next few months. emerging and developing economies are not exempt from the rise in inflation and now also face capital - flow and exchange - rate risks in the face of monetary policy normalisation. south africa ’ s headline inflation has also been rising, with the latest inflation number averaging 7. 4 %

, as insurers, to provide the safety net required in our economy and to society at large, proactive management of the risks is required. in this regard, strengthening risk management within institutions as well as our collective thinking on mitigation of emerging risks will be crucial. the financial sector as a whole has remained resilient, despite the multiplicity of shocks over the past two years. the prudential authority, much like many of you at this conference, remains resolute in contributing to the resurgence, resilience and revival of the insurance sector through clear supervisory guidance and providing regulatory certainty. in this regard, we will continue to collaborate with the financial sector conduct authority and industry associations to enhance the resilience of the sector. thank you again for the opportunity to address you this morning, and to the insurance institute of south africa and south african insurance association for honouring me with this award.