Report Coverage
The report on the sector describes the current market, the latest regulatory developments and factors influencing the success of the sector. The report profiles 43 short-term insurance companies, including dominant players Santam, Hollard and Mutual & Federal (rebranded to Old Mutual Insure). It also focuses on direct insurance companies like OUTsurance and MiWay which have taken personal lines market share at the expense of traditional players and intermediaries. The report includes new entrants using digital platforms and/or serving the financially excluded low-income market with microinsurance products developed within the regulatory framework of the newly enacted Insurance Act, 2017.
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 various types of travel insurance. With gross premium income of R116.7bn in 2016, the short-term, or non-life insurance sub-sector, plays a key role in the financial sector and is an important contributor to economic growth. Short-term insurance companies contributed gross premium income of R108.14bn to the South African economy at the end of September 2017.
State of The Industry
Contraction and consolidation saw the number of primary insurers that were registered with the FSB decrease by 10.2% to 88 at the end of March 2017. The industry is experiencing tough trading conditions and increased regulatory obligations. One of the industry’s most pressing challenges is the increase in frequency and severity of extreme weather events and natural disasters which included fires in Knysna, drought in the Western Cape, and storms in Gauteng and Kwazulu-Natal. Catastrophic events, changing demographics, fintech and amended regulations may significantly change the structure of the industry.
Historical Reports
The Short - Term Insurance Industry in South Africa 2022-02-15
R 13 500.00(ZAR) estimated $832.95 (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 $401.05 (USD)*
View Report Add to CartShort Term Insurance including Direct and Travel Insurance in South Africa 2016-01-19
R 1 900.00(ZAR) estimated $117.23 (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 $117.23 (USD)*
View Report Add to CartTable of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Value Chain | 3 |
| 2.2. | Geographic Position | 4 |
| 3. | SIZE OF THE INDUSTRY | 5 |
| 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 and Social Economic Development | 24 |
| 4.2. | Continental | 27 |
| 4.3. | International | 30 |
| 5. | INFLUENCING FACTORS | 31 |
| 5.1. | Economic Environment | 31 |
| 5.2. | Regulatory Environment | 33 |
| 5.3. | Investment Performance | 34 |
| 5.4. | Financial Inclusion | 36 |
| 5.5. | Operating Costs | 37 |
| 5.6. | The Automotive Aftermarket Sector | 38 |
| 5.7. | Crime | 39 |
| 5.8. | Cyber Risk | 39 |
| 5.9. | Information Technology, Research and Development (R&D) and Innovation | 40 |
| 5.10. | Labour | 44 |
| 5.11. | Cyclicality | 46 |
| 5.12. | Climate Change and Extreme Weather | 46 |
| 6. | COMPETITION | 47 |
| 6.1. | Barriers to Entry | 48 |
| 7. | SWOT ANALYSIS | 48 |
| 8. | OUTLOOK | 49 |
| 9. | INDUSTRY ASSOCIATIONS | 50 |
| 10. | REFERENCES | 50 |
| 10.1. | Publications | 50 |
| 10.2. | Websites | 51 |
| APPENDIX 1 | 53 | |
| Summary of Major Players | 53 | |
| APPENDIX 2 | 56 | |
| Classes and Sub-Classes of Insurance Business for Non-Life Insurance under Schedule 2 of the Insurance Act, 2017 | 56 | |
| APPENDIX 3 | 60 | |
| New and Amended Accounting Standards and Interpretations that became effective on or after 1 January 2016 | 60 | |
| COMPANY PROFILES | 61 | |
| ABSA INSURANCE COMPANY LTD | 61 | |
| AFRICAN REINSURANCE CORPORATION (SOUTH AFRICA) LTD | 63 | |
| AIG SOUTH AFRICA LTD | 66 | |
| ALEXANDER FORBES INSURANCE COMPANY LTD | 68 | |
| ALLIANZ GLOBAL CORPORATE AND SPECIALTY SOUTH AFRICA LTD | 70 | |
| AUTO AND GENERAL INSURANCE COMPANY (RF) LTD | 72 | |
| BIDVEST INSURANCE LTD | 74 | |
| BRYTE INSURANCE COMPANY LTD | 76 | |
| BUDGET INSURANCE COMPANY (RF) LTD | 79 | |
| CENTRIQ INSURANCE COMPANY LTD | 81 | |
| COFACE SOUTH AFRICA INSURANCE COMPANY LTD | 83 | |
| COMPASS INSURANCE COMPANY LTD | 85 | |
| CONSTANTIA INSURANCE COMPANY LTD | 87 | |
| DIAL DIRECT INSURANCE (RF) LTD | 89 | |
| ESCAP SOC LTD | 91 | |
| EXPORT CREDIT INSURANCE CORPORATION OF SOUTH AFRICA SOC LTD | 93 | |
| FEDERATED EMPLOYERS MUTUAL ASSURANCE COMPANY (RF) (PTY) LTD (THE) | 96 | |
| FIRST FOR WOMEN INSURANCE COMPANY (RF) LTD | 99 | |
| FIRSTRAND BANK LTD | 101 | |
| GENERAL REINSURANCE AFRICA LTD | 106 | |
| GIC RE SOUTH AFRICA LTD | 109 | |
| GUARDRISK INSURANCE COMPANY LTD | 112 | |
| HANNOVER REINSURANCE GROUP AFRICA (PTY) LTD | 115 | |
| HOLLARD INSURANCE COMPANY LTD (THE) | 117 | |
| INDEQUITY GROUP LTD | 121 | |
| KING PRICE INSURANCE COMPANY LTD | 124 | |
| LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA | 126 | |
| LIBERTY GROUP LTD | 131 | |
| LION OF AFRICA INSURANCE COMPANY LTD | 134 | |
| LOMBARD INSURANCE COMPANY LTD | 137 | |
| MIWAY INSURANCE LTD | 139 | |
| MMI HOLDINGS LTD | 142 | |
| MUNICH REINSURANCE COMPANY OF AFRICA LTD | 147 | |
| MUTUAL AND FEDERAL RISK FINANCING LTD | 149 | |
| NEDGROUP INSURANCE COMPANY LTD | 151 | |
| OLD MUTUAL INSURE LTD | 153 | |
| OUTSURANCE INSURANCE COMPANY LTD | 156 | |
| PSG KONSULT LTD | 159 | |
| SANTAM LTD | 163 | |
| SASRIA LTD | 167 | |
| SCOR AFRICA LTD | 169 | |
| STANDARD INSURANCE LTD | 171 | |
| TRUSTCO GROUP HOLDINGS LTD | 173 |
