Who Owns Whom

The Short - Term Insurance Industry in South Africa 2022

Alex Conradie | South Africa | 15 February 2022

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R 13 500.00(ZAR) estimated $ 859.21 (USD)*

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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.

The Short Term Industry in South Africa

South Africa’s non-life insurance industry has been affected by pandemic-related claims, the weak economy and high crime levels. While there was an increase in business interruption claims and reinsurance costs, the claims ratios of some classes of business, such as motor, improved due to the lockdown and fewer weather-related catastrophes. Claims ratios in other classes, such as trade credit and consumer credit, increased due to defaults on credit caused by the lockdown.

Vehicle Insurance

South Africa’s high vehicle accident rate is one of the factors responsible for the high premiums charged for personal and commercial vehicle insurance. During the pandemic, the number of motor vehicle claims decreased due to alcohol bans, curfews and the fact that many people are working from home. With 60% to 70% of vehicles in South Africa uninsured and more than 800,000 accidents occurring annually, most vehicles involved in accidents are not insured. Vehicles are generally not insured due to affordability, people believing they will never be involved in an accident or believing they only drive short distances or do not drive often, or because vehicle owners do not realise how high vehicle repair costs are.

Table of Contents

PAGE
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