Report Coverage
This report is on the short term, or non-life insurance industry in South Africa which provides insurance (including reinsurance) of non-life business such as accident, fire, property, motor vehicle, marine, aviation, transport, travel, trade credit and liability insurance. The report includes information on the state and size of the industry, financial indicators such as gross premiums and claims incurred, market shares, developments and corporate actions. There are profiles of 55 companies including well-known insurers such as Santam, Old Mutual, Hollard, OUTsurance and MiWay, reinsurers such as Hannover Reinsurance and Munich Reinsurance and state-owned companies including Escap (which insures Eskom), Sasria (which insured against the July 2021 unrest) and the Road Accident Fund.
Introduction
According to South African Reserve Bank (SARB) figures, South Africa’s non-life insurance industry recorded gross premiums of R173.3bn in 2020, compared to R172.9bn in 2019. Data from global reinsurance company Swiss Re shows the country’s non-life insurance industry was the world’s 35th largest in 2020, with a 0.21% share of the world market based on premiums. However, the industry’s operating profit decreased from R22.6bn in 2019 to R15.8bn in 2020. Factors such as COVID-19 related claims, the weak economy and high crime levels are affecting the performance of the industry.
Strengths
• Industry is highly competitive.
• Industry is well capitalised and financially sound.
• Large number of well-established companies.
Weaknesses
• Ambiguous policy wording causing protracted claim disputes.
• Shortage of skilled employees.
Opportunities
• Can grow customer base by increasing financial inclusion.
• Insurance penetration is low in Africa, signifying an untapped market.
• More people are able to afford insurance as technological developments lower costs for insurers.
Threats
• Climate change-related risks.
• COVID-19-related claims.
• Future pandemics.
• High vehicle accident rate and high levels of crime, including insurance fraud and cybercrime.
• South Africa’s poor economy hampers insurance uptake.
• Weak performance of investments.
Outlook
After world non-life insurance premiums increased by 1.5% in real terms in 2020, global reinsurance company Swiss Re forecast they grew by 2.8% in 2021, and it expects them to rise by 3.7% in 2022, both in real terms. Global insurers expect challenges for 2022 to include regulation, sustainability, talent and evolving customer preferences, while strategic priorities will probably be centred on flexible work models, finding the balance between automation and the need to keep human interaction with customers, and doing more to boost stakeholders’ trust. Gideon Galloway, King Price Insurance’s CEO, expects the South African non-life insurance industry to grow in 2022 because demand for insurance is increasing. He sees the following trends for local insurers in 2022: they will make it easier for customers to join them; create products to meet rapidly-evolving market needs; digitally transform operations by using automation and artificial intelligence to create smoother claims and underwriting processes; expand cybersecurity cover as it is the biggest risk facing local companies; and adapt vehicle insurance to changing mobility patterns. In cities, it is getting easier for people to get around without having cars, while younger generations do not view cars as status symbols but simply as a means of getting around.
Full Report
R 6 500.00(ZAR) estimated $353.60 (USD)*
Industry Landscape
R 4 550.00(ZAR) estimated $ 247.52 (USD)*
Historical Reports
The Short Term Insurance Industry in South Africa 2020-11-24
R 1 900.00(ZAR) estimated $103.36 (USD)*
View Report Add to CartThe Short Term Insurance Industry in South Africa 2018-08-22
R 1 900.00(ZAR) estimated $103.36 (USD)*
View Report Add to CartThe Short Term Insurance Industry in South Africa 2016-01-19
R 1 900.00(ZAR) estimated $103.36 (USD)*
View Report Add to CartThe Short Term Insurance Industry in South Africa 2014-11-28
R 1 900.00(ZAR) estimated $103.36 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 3 |
2.2. | Geographic Position | 5 |
2.3. | Size of the Industry | 5 |
2.4. | Key Success Factors and Pain Points | 8 |
3. | LOCAL | 8 |
3.1. | Key Trends | 10 |
3.2. | Notable Players | 15 |
3.3. | Corporate Actions | 20 |
3.4. | Regulations | 21 |
3.5. | Enterprise Development and Social Economic Development | 23 |
4. | AFRICA | 24 |
5. | INTERNATIONAL | 28 |
6. | INFLUENCING FACTORS | 31 |
6.1. | COVID -19 | 31 |
6.2. | Economic Environment | 33 |
6.3. | Technology, Research and Development (R&D) and Innovation | 34 |
6.4. | Crime | 37 |
6.5. | Environmental Issues | 40 |
6.6. | Investment Performance | 40 |
6.7. | Financial Inclusion | 41 |
6.8. | Input Costs | 42 |
6.9. | Infrastructure | 43 |
6.10. | Labour | 43 |
7. | COMPETITIVE ENVIRONMENT | 44 |
7.1. | Competition | 44 |
7.2. | Ownership Structure of the Industry | 45 |
7.3. | Barriers to Entry | 46 |
8. | SWOT ANALYSIS | 46 |
9. | OUTLOOK | 47 |
10. | INDUSTRY ASSOCIATIONS | 47 |
11. | REFERENCES | 48 |
11.1. | Publications | 48 |
11.2. | Websites | 49 |
APPENDICES | 50 | |
Appendix 1 - Classes and Sub-Classes of Insurance Business for Non-Life Insurance under Schedule 2 of the Insurance Act, 2017 | 50 | |
Appendix 2 - SARB List of Insurers, November 2021 | 54 | |
Appendix 3 - Summary of Notable Players | 60 | |
COMPANY PROFILES | 67 | |
Absa Insurance Company Ltd | 67 | |
African Reinsurance Corporation (South Africa) Ltd | 69 | |
AIG South Africa Ltd | 72 | |
Allianz Global Corporate and Specialty South Africa Ltd | 74 | |
Auto and General Insurance Company (RF) Ltd | 76 | |
Bidvest Insurance Ltd | 78 | |
Bryte Insurance Company Ltd | 80 | |
Budget Insurance Company (RF) Ltd | 84 | |
Centriq Insurance Company Ltd | 86 | |
CFAO Motors Insurance Ltd | 89 | |
Chubb Insurance South Africa Ltd | 91 | |
Clientele General Insurance Ltd | 93 | |
Coface South Africa Insurance Company Ltd | 95 | |
Compass Insurance Company Ltd | 97 | |
Constantia Insurance Company Ltd | 99 | |
Corporate Guarantee (South Africa) (RF) Ltd | 102 | |
Credit Guarantee Insurance Corporation of Africa Ltd | 104 | |
Dial Direct Insurance (RF) Ltd | 107 | |
Discovery Insure Ltd | 109 | |
Escap SOC Ltd | 111 | |
Export Credit Insurance Corporation of South Africa SOC Ltd | 113 | |
Federated Employers Mutual Assurance Company (RF) (Pty) Ltd (The) | 116 | |
First For Women Insurance Company (RF) Ltd | 119 | |
FirstRand Bank Ltd | 121 | |
General Reinsurance Africa Ltd | 126 | |
GIC Re South Africa Ltd | 129 | |
Guardrisk Insurance Company Ltd | 132 | |
Hannover Reinsurance Group Africa (Pty) Ltd | 135 | |
Hollard Insurance Company Ltd (The) | 138 | |
Indequity Group Ltd | 142 | |
King Price Insurance Company Ltd | 144 | |
Land and Agricultural Development Bank of South Africa | 146 | |
Liberty Group Ltd | 150 | |
Lion of Africa Insurance Company Ltd | 153 | |
Lombard Insurance Company Ltd | 156 | |
MiWay Insurance Ltd | 159 | |
Momentum Metropolitan Holdings Ltd | 162 | |
Munich Reinsurance Company of Africa Ltd | 167 | |
Mutual and Federal Risk Financing Ltd | 170 | |
Naked Financial Technology (Pty) Ltd | 172 | |
Nedgroup Insurance Company Ltd | 174 | |
Old Mutual Insure Ltd | 176 | |
OUTsurance Insurance Company Ltd | 179 | |
Pineapple Tech (Pty) Ltd | 182 | |
Professional Provident Society Short-Term Insurance Company (Pty) Ltd | 184 | |
PSG Konsult Ltd | 186 | |
Renasa Insurance Company Ltd | 190 | |
Road Accident Fund | 192 | |
Safire Insurance Company Ltd | 195 | |
Santam Ltd | 197 | |
Sasria Ltd | 202 | |
SCOR Africa Ltd | 205 | |
Standard Insurance Ltd | 207 | |
Swiss Re Corporate Solutions Africa (Pty) Ltd | 209 | |
Trustco Group Holdings Ltd | 211 |