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Short -Term Insurance Including Direct and Travel Insurance in South Africa
BY Natalie Bryden
South Africa
24 November 2020
R 10 080.00 (ZAR)  
estimated $ 668.29 (USD) *
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Short-Term Insurance in South Africa


South Africa’s insurance industry is struggling to grow revenue and maintain profitability due to the poor economy, the coronavirus pandemic, declining employment, reduced disposable income and increasing climate-related risks. The coronavirus pandemic has resulted in significant losses to companies, particularly in the accommodation, travel and tourism industries. Some companies launched business interruption claims and some insurers refused have refused to pay. Globally, insurance demand is expected to contract in 2020, with trade and travel-related insurance business such as marine, aviation and credit expected to have been the hardest hit.


Big Players


Of the 166 insurance companies registered with the Reserve Bank in September 2020, 86 are non-life insurers, 75 are life insurers and five are composite. Motor insurance is the largest short-term insurance class, followed by property and liability. The top 10 short-term insurers have dominated the industry for years, accounting for around 77% of gross written premiums in 2018. Santam has a market share twice the size of its closest competitor.


Industry Trends


Climate change-related catastrophes are increasing in frequency and severity and have been identified as one of the top risks for insurers. Technology is disrupting the industry and making insurance more accessible, while customers are demanding flexible and personalised insurance products tailored to their risk profiles. Stricter capital and compliance measures are making it difficult for some small players to remain viable.


Report Coverage


This report focuses on short-term insurance including direct and travel insurance in South Africa, and includes information on the size and state of the sector, key performance ratios, developments and corporate actions. There are profiles of 56 companies, including the traditional players such as Sanlam, and Old Mutual, reinsurers such as Hannover Re, GIC Re and Africa-Re, and public entities such as Sasria and Eskom’s Escap.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 16
4.2. Continental 18
4.3. International 21
5. INFLUENCING FACTORS 23
5.1. Coronavirus 23
5.2. Economic Environment 25
5.3. Crime 26
5.4. Investment Performance 27
5.5. Financial Inclusion 28
5.6. Rising Operating Costs 29
5.7. In-Vehicle and Home Technology 30
5.8. Cyber Risk 30
5.9. Technology, Research and Development (R&D) and Innovation 31
5.10. Cyclicality 34
5.11. Environmental Concerns 34
5.12. Labour 35
6. COMPETITION 37
6.1. Barriers to Entry 37
7. SWOT ANALYSIS 38
8. OUTLOOK 39
9. INDUSTRY ASSOCIATIONS 39
10. REFERENCES 40
10.1. Publications 40
10.2. Websites 40
APPENDIX 1 42
Classes and Sub-Classes of Insurance Business for Non-Life Insurance under Schedule 2 of the Insurance Act, 2017 42
APPENDIX 2 46
SARB List of Insurers, September 2020 46
APPENDIX 3 52
Summary of Notable players 52
COMPANY PROFILES 56
ABSA INSURANCE COMPANY LTD 56
AFRICAN REINSURANCE CORPORATION (SOUTH AFRICA) LTD 58
AIG SOUTH AFRICA LTD 60
ALLIANZ GLOBAL CORPORATE AND SPECIALTY SOUTH AFRICA LTD 62
AUTO AND GENERAL INSURANCE COMPANY (RF) LTD 64
BIDVEST INSURANCE LTD 66
BRYTE INSURANCE COMPANY LTD 68
BUDGET INSURANCE COMPANY (RF) LTD 71
CENTRIQ INSURANCE COMPANY LTD 73
CFAO MOTORS INSURANCE LTD 76
CHUBB INSURANCE SOUTH AFRICA LTD 78
CLICK2SURE INTERMEDIARIES (PTY) LTD 80
CLIENTELE GENERAL INSURANCE LTD 81
COFACE SOUTH AFRICA INSURANCE COMPANY LTD 83
COMPASS INSURANCE COMPANY LTD 85
CONSTANTIA INSURANCE COMPANY LTD 87
CORPORATE GUARANTEE (SOUTH AFRICA) (RF) LTD 89
DIAL DIRECT INSURANCE (RF) LTD 91
DISCOVERY INSURE LTD 93
ESCAP SOC LTD 95
EXPORT CREDIT INSURANCE CORPORATION OF SOUTH AFRICA SOC LTD 97
FEDERATED EMPLOYERS MUTUAL ASSURANCE COMPANY (RF) (PTY) LTD (THE) 100
FIRST FOR WOMEN INSURANCE COMPANY (RF) LTD 103
FIRSTRAND BANK LTD 105
GENERAL REINSURANCE AFRICA LTD 110
GIC RE SOUTH AFRICA LTD 113
GRANADILLA (PTY) LTD 116
GUARDRISK INSURANCE COMPANY LTD 117
HANNOVER REINSURANCE GROUP AFRICA (PTY) LTD 120
HOLLARD INSURANCE COMPANY LTD (THE) 122
INDEQUITY GROUP LTD 125
INVESTSURE TECHNOLOGIES (PTY) LTD 127
KING PRICE INSURANCE COMPANY LTD 129
LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA 131
LIBERTY GROUP LTD 135
LION OF AFRICA INSURANCE COMPANY LTD 138
LOMBARD INSURANCE COMPANY LTD 141
MIWAY INSURANCE LTD 143
MOMENTUM METROPOLITAN HOLDINGS LTD 146
MUNICH REINSURANCE COMPANY OF AFRICA LTD 151
MUTUAL AND FEDERAL RISK FINANCING LTD 153
NAKED FINANCIAL TECHNOLOGY (PTY) LTD 155
NEDGROUP INSURANCE COMPANY LTD 157
NOBUNTU GROUP (PTY) LTD 159
OLD MUTUAL INSURE LTD 160
OUTSURANCE INSURANCE COMPANY LTD 162
PINEAPPLE TECH (PTY) LTD 165
PROFESSIONAL PROVIDENT SOCIETY SHORT-TERM INSURANCE COMPANY (PTY) LTD 167
PSG KONSULT LTD 169
RENASA INSURANCE COMPANY LTD 173
SAFIRE INSURANCE COMPANY LTD 175
SANTAM LTD 177
SASRIA LTD 181
SCOR AFRICA LTD 183
STANDARD INSURANCE LTD 185
TRUSTCO GROUP HOLDINGS LTD 187