This report provides a comprehensive overview of the insurance and reinsurance sector in South Africa and on the continent with industry statistics largely covering 2017. There are detailed profiles of 43 companies including major insurers Old Mutual, MMI, Liberty and Sanlam, direct life insurers such as Clientèle Life, 1Life and OUTsurance and reinsurers such as Munich Re and Swiss Re.
The Life Insurance Industry Including Reinsurance
With total assets of R3.1-trillion at 30 September 2018, South Africa’s life insurance industry is the largest on the African continent. The industry contributed R469bn to the local economy through total benefit payments to policyholders and beneficiaries during 2017. Individual benefits, amounting to R207.5bn, showed minimal year-on-year growth, but the increase in critical illness and murders in South Africa are a potential driver of future increases in benefits paid. Death claims, which made up 78.5% of risk claims, decreased by 1.2% over the 12-months to 30 June 2018.
The industry is in a transformational phase as a new regulatory regime is being implemented. Technological change is another driver of the transformation with the rise of insurtech startups widely regarded as a major industry disruptor. Commentators believe the implementation of the Treating Customers Fairly framework and other new regulations will have a profound effect on the market. The entry of non-traditional players such as banks, telecoms companies, undertakers and funeral parlours and retailers has served to increase the competitiveness of the industry.