Rethinking Transport Risk

As South Africa’s transport needs evolve, a major shift is happening in how people move—and how the insurance industry responds.

In this discussion, Tony van Niekerk sits down with Mike Mgodeli, Managing Director of RTUSA, to unpack the future of mobility. From e-hailing and public transport to fleet leasing and risk management, Mike shares his unique insights into the convergence of old and new transport modes.

What used to be a “turf war” between minibus taxis and e-hailing platforms is transforming into a collaborative, co-created system of movement. As consumers seek affordable, convenient ways to get around, vehicle ownership is declining, and informal leasing arrangements are stepping in to fill the gap—particularly for drivers who lack traditional credit profiles or access to finance.

The conversation highlights the critical role of insurance in this changing ecosystem and why most current insurance models fall short. Mike discusses the challenges of risk profiling, driver compliance, and repair models, offering real-world examples of how insurers can evolve to support fleet owners and independent drivers alike.

He also speaks directly to brokers—urging them to see this space as a growth opportunity, where relationship-building and innovation can drive new revenue and social impact.

Don’t miss this timely conversation on mobility, innovation, and inclusion.

Key Highlights

• The Role of RTUSA:
  RTUSA is actively working to formalise and innovate within South Africa’s public transport sector, particularly focusing on minibus taxis and e-hailing services. They’re bridging gaps between transport, finance, and insurance.

• Mobility as Access, Not Ownership:
  There’s a major shift from vehicle ownership to access-based mobility. RTUSA is at the forefront of building leasing models and vehicle subscription services tailored for drivers in the informal sector.

• Barriers to Entry for Drivers:
  Many potential drivers are excluded from the market due to lack of access to finance, insurance, and vehicles. RTUSA helps unlock opportunities by structuring leasing solutions that include insurance, tracking, maintenance, and more.

• Collaborating with Insurers and OEMs:
  RTUSA collaborates with OEMs, banks, and insurers to develop sustainable products. They also push for industry data sharing to help insurers better assess risk in this complex segment.

• Insurance Innovation:
  Traditional insurance doesn’t cater well to the realities of public and e-hailing transport. RTUSA is co-creating inclusive insurance products that fit the sector’s needs, including usage-based and bundled offerings.

• Data-Driven Risk Management:
  With telematics and tracking, there’s an opportunity to create more accurate, dynamic insurance solutions and reduce fraud or misuse—benefiting insurers and drivers alike.

• Regulation and the Informal Sector:
  Mike highlights the need for policy reform and the recognition of informal sector players to create a more inclusive and safer mobility ecosystem.