Report Coverage
The report on the highly competitive short-term insurance sector describes the current market, the latest regulatory developments and discusses factors influencing the success of the sector. The report profiles 49 short-term insurance companies, ranging from industry leader Santam which has almost 20% of the market, to direct insurance company, 1Life Insurance (RF) Ltd. Also profiled are six of the country’s seven reinsurance companies, including Hannover Re and Munich Re which have a combined market share of 65%.
Short-term Insurance Industry
This report focuses on South Africa’s rapidly evolving short-term Insurance industry, which encompasses a broad spectrum of personal and commercial lines, including travel insurance. As at 31 December 2014, 90 insurers and seven reinsurance companies were registered with the Financial Services Board (FSB). With gross premium income of R102.83bn in 2014, the non-life insurance sub-sector plays a key role in the financial sector and is an important contributor to economic growth.
Market Penetration
Although there are approximately 12.5 million short-term policyholders in South Africa, this figure does not represent market penetration. Results of the 2015 FinScope South Africa Consumer Survey indicate that only 6.6 million South African residents aged 16 years and older have non-funeral insurance cover. Only 4% of respondents had household contents insurance, down from 6% in 2014, while 8% of respondents had motor vehicle insurance, down from 9% in 2014.
A sector Under Pressure
The sector has been under growing pressure in recent years, as it grapples with a barrage of regulatory and technological challenges. With the “Twin-Peaks” and Solvency Assessment and Management (SAM) regulatory frameworks implemented in January 2016, some analysts caution that the sector currently finds itself “on the cusp of major disruption”. Added to these changes is the pressure caused by the weak economy, the sharp depreciation of the South African rand and rising inflation which are expected to result in further interest rate hikes. Analysts also warn that this erosion of disposable income is likely to drive up the policy lapse rate.
Historical Reports
The Short - Term Insurance Industry in South Africa 2022-02-15
R 13 500.00(ZAR) estimated $818.26 (USD)*
View Report Add to CartShort -Term Insurance Including Direct and Travel Insurance in South Africa 2020-11-24
R 6 500.00(ZAR) estimated $393.98 (USD)*
View Report Add to CartShort Term Insurance including Direct and Travel Insurance in South Africa 2018-08-22
R 1 900.00(ZAR) estimated $115.16 (USD)*
View Report Add to CartShort Term Insurance including Direct and Travel Insurance in South Africa 2014-11-28
R 1 900.00(ZAR) estimated $115.16 (USD)*
View Report Add to CartTable of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Value Chain | 2 |
| 2.2. | Geographic Position | 3 |
| 3. | SIZE OF THE INDUSTRY | 4 |
| 4. | STATE OF THE INDUSTRY | 11 |
| 4.1. | Local | 11 |
| 4.1.1. | Corporate Actions | 15 |
| 4.1.2. | Regulations | 18 |
| 4.1.3. | Enterprise Development (ED) and Socio-Economic Development (SED) Initiatives | 23 |
| 4.2. | Continental | 25 |
| 4.3. | International | 26 |
| 5. | INFLUENCING FACTORS | 28 |
| 5.1. | Economic Environment | 28 |
| 5.2. | Government Intervention | 29 |
| 5.3. | Regulatory Changes | 29 |
| 5.4. | Input Costs | 30 |
| 5.5. | Crime | 30 |
| 5.6. | Technology, Research and Development (R&D) and Innovation | 32 |
| 5.7. | Labour Resources | 34 |
| 5.8. | Cyclicality | 36 |
| 5.9. | Environmental Concerns | 36 |
| 6. | COMPETITION | 38 |
| 6.1. | Barriers to Entry | 38 |
| 7. | SWOT ANALYSIS | 39 |
| 8. | OUTLOOK | 40 |
| 9. | INDUSTRY ASSOCIATIONS | 41 |
| 10. | REFERENCES | 41 |
| 10.1. | Publications | 41 |
| 10.2. | Websites | 43 |
| COMPANY PROFILES | 44 | |
| 1LIFE INSURANCE (RF) LTD | 44 | |
| ABSA INSURANCE AND FINANCIAL ADVISERS (PTY) LTD | 46 | |
| ABSA INSURANCE COMPANY LTD | 48 | |
| AFRICAN REINSURANCE CORPORATION (SOUTH AFRICA) LTD | 50 | |
| AIG South Africa Ltd | 52 | |
| Alexander Forbes Insurance Company Ltd | 54 | |
| Allianz Global Corporate and Specialty South Africa Ltd | 56 | |
| Aon South Africa (Pty) Ltd | 58 | |
| Auto and General Insurance Company (RF) Ltd | 62 | |
| Bidvest Insurance Ltd | 65 | |
| Braveheart Financial Services (Pty) Ltd | 67 | |
| Centriq Insurance Company Ltd | 69 | |
| CIB Insurance Administrators (Pty) Ltd | 71 | |
| Coface South Africa Insurance Company Ltd | 73 | |
| Compass Insurance Company Ltd | 75 | |
| Constantia Insurance Company Ltd | 77 | |
| Dial Direct Insurance (RF) Ltd | 79 | |
| Econorisk (Pty) Ltd | 81 | |
| Export Credit Insurance Corporation of South Africa SOC Ltd | 84 | |
| Federated Employers Mutual Assurance Company (RF) (Pty) Ltd (The) | 87 | |
| FirstRand Bank Ltd | 90 | |
| Fussell and Associates (Pty) Ltd | 94 | |
| General Reinsurance Africa Ltd | 96 | |
| Genesis Insurance Brokers (Pty) Ltd | 98 | |
| GIB Insurance Brokers (Pty) Ltd | 100 | |
| GIC Re South Africa Ltd | 103 | |
| Guardrisk Insurance Company Ltd | 105 | |
| Hannover Reinsurance Group Africa (Pty) Ltd | 107 | |
| Hollard Insurance Company Ltd (The) | 109 | |
| Indequity Group Ltd | 113 | |
| Insure Group Managers Holdings Ltd | 116 | |
| Ithala Development Finance Corporation Ltd | 118 | |
| King Price Insurance Company Ltd | 123 | |
| Lion of Africa Insurance Company Ltd | 125 | |
| Lombard Insurance Company Ltd | 128 | |
| Marsh (Pty) Ltd | 130 | |
| MiWay Insurance Ltd | 133 | |
| Mont Blanc Financial Services (Pty) Ltd | 136 | |
| Multi Risk Brokers (Pty) Ltd | 138 | |
| Munich Reinsurance Company of Africa Ltd | 140 | |
| Mutual and Federal Insurance Company Ltd | 142 | |
| Mutual and Federal Risk Financing Ltd | 146 | |
| Nedbank Ltd | 148 | |
| OUTsurance Insurance Company Ltd | 156 | |
| PSG Konsult Ltd | 158 | |
| Regent Insurance Company Ltd | 161 | |
| Risk Benefit Solutions (Pty) Ltd | 164 | |
| Santam Ltd | 166 | |
| SCOR Africa Ltd | 171 | |
| Standard Bank Insurance Brokers (Pty) Ltd | 173 | |
| Standard Insurance Ltd | 175 | |
| Telesure Investment Holdings (Pty) Ltd | 177 | |
| Trustco Group Holdings Ltd | 181 | |
| Vision Direct 155 (Pty) Ltd | 185 | |
| Zurich Insurance Company South Africa Ltd | 186 |
