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.
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.
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.
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.
Strengths
Industry is highly competitive.Industry is well capitalised and financially sound. Large number of well-established companies.
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.
Weaknesses
Ambiguous policy wording causing protracted claim disputes. Shortage of skilled employees.Table of Contents
1. INTRODUCTION4. AFRICA5. INTERNATIONAL8. SWOT ANALYSIS9. OUTLOOK10. INDUSTRY ASSOCIATIONSAPPENDICESAppendix 1 - Classes and Sub-Classes of Insurance Business for Non-Life Insurance under Schedule 2 of the Insurance Act, 2017Appendix 2 - SARB List of Insurers, November 2021Appendix 3 - Summary of Notable Players
2. DESCRIPTION OF THE INDUSTRY
3. LOCAL
6. INFLUENCING FACTORS
7. COMPETITIVE ENVIRONMENT
11. REFERENCES
COMPANY PROFILES
Companies Mentioned
- Absa Insurance Company Ltd
- Absa Securities United Kingdom Ltd
- Absa Stockbrokers Nigeria Ltd
- African Life Assurance Company (Botswana) (Pty) Ltd
- African Reinsurance Corporation (South Africa) Ltd
- Agrisol Schoeman Precision Services (Pty) Ltd
- AIG South Africa Ltd
- Allianz Global Corporate and Specialty South Africa Ltd
- Amber Support Solutions Ltd
- Auto and General Insurance Company (RF) Ltd
- Autosure (Pty) Ltd
- Autosure Cover (Pty) Ltd
- Axis Cleaning and Support Services Ltd
- Axis Group Integrated Services Ltd
- Axis Security Services Ltd
- B.I.C Services Pty Ltd
- Bi Me (Pty) Ltd
- Bidvest Group (UK) PLC (The)
- Bidvest Group Australia Pty Ltd (The)
- Bidvest Insurance Ltd
- Bidvest Noonan (ROI) Ltd
- Bidvest Noonan (UK) Ltd
- Bidvest Services (ROI) Ltd
- Bidvest Services (UK) Ltd
- Bidvest Services Group (UK) Ltd
- Bryte Insurance Company Ltd
- Budget Insurance Company (RF) Ltd
- Carnarvon Abattoir (Pty) Ltd
- Centriq Insurance Company Ltd
- Chubb Insurance South Africa Ltd
- Clientele General Insurance Ltd
- CLM Safety Ltd
- Coface South Africa Insurance Company Ltd
- Compass Insurance Company Ltd
- Constantia Insurance Company Ltd
- Cordant Cleaning Ltd
- Cordant Security Ltd
- Cordant Thistle Ltd
- Corporate Guarantee (South Africa) (RF) Ltd
- Crane Midco (Guernsey) Ltd
- Crane Midco Ltd
- Credit Guarantee Insurance Corporation of Africa Ltd
- Crystal Cool Namibia (Pty) Ltd
- Dartry Laundry Ltd
- Dial Direct Insurance (RF) Ltd
- Direct365Online Ltd
- Discovery Insure Ltd
- Discovery International Collective Investments PLC
- Discovery Mauritius Asset Management Ltd
- EFS Namibia (Pty) Ltd
- Epsilon Test Services Ltd
- Escap SOC Ltd
- Export Credit Insurance Corporation of South Africa SOC Ltd
- Farmwise Marketing (Pty) Ltd
- Farmwise Properties (Pty) Ltd
- Federated Employers Mutual Assurance Company (RF) (Pty) Ltd (The)
- First For Women Insurance Company (RF) Ltd
- FirstRand Bank Ltd
- Future Carpet Cleaning Services Ltd
- Future Cleaning (Southwest) Ltd
- Future Cleaning Services Ltd
- General Reinsurance Africa Ltd
- GIC Re South Africa Ltd
- Gordonia Motors (Pty) Ltd
- Greenhouse Funding 5 (RF) Ltd
- Group Risk Mutual Ltd
- Guardrisk Insurance Company Ltd
- Hannover Reinsurance Group Africa (Pty) Ltd
- HDI Global Network AG
- Hentiq 2009 (Pty) Ltd
- Hentiq 2010 (Pty) Ltd
- Hollard Insurance Company Ltd (The)
- Hygiene Matters Ltd
- IDQ Investments Inc
- Indequity Group Ltd
- Jaagvlak Motors (Pty) Ltd
- Karmarton Ltd
- Kimberley Veemark (Pty) Ltd
- King Price Insurance Company Ltd
- L. Lynch (H20) Solutions Ltd
- L.Lynch Interact Ltd
- Land and Agricultural Development Bank of South Africa
- Liberty Group Ltd
- Lion of Africa Insurance Company (Pty) Ltd
- Lombard Insurance Company Ltd
- LPM Acquisitions Ltd
- Majestic Silver Trading 60 (Pty) Ltd
- Material Conversion Holdings (Pty) Ltd
- Mayflower Hygiene Supplies (Ireland) Ltd
- Mayflower Hygiene Supplies (London) Ltd
- Microensure (UK) Ltd
- MicroEnsure Holdings Ltd
- MiWay Insurance Ltd
- Mogaladi Fuel (Pty) Ltd
- Momentum Metropolitan Holdings Ltd
- Munich Reinsurance Company of Africa Ltd
- Mutual and Federal Risk Financing Ltd
- MVN-X (Pty) Ltd
- Naked Financial Technology (Pty) Ltd
- Ned Investment Trust
- Nedgroup Insurance Company Ltd
- Noonan Services Group (NI) Ltd
- Noonan Topco Ltd
- NPE 1 (Pty) Ltd
- NPE 2 (Pty) Ltd
- NPE Holdco (Pty) Ltd
- NWK Loyalty Programme Trust (The)
- Old Mutual Holdings (Mauritius) Ltd
- Old Mutual Insure Ltd
- OUTsurance DAC
- OUTsurance Insurance Company Ltd
- OUTsurance Irish Insurance Holdings Ltd
- Personnel Hygiene Services Ltd
- PHS Bidco Ltd
- PHS Compliance Ltd
- PHS Group Ltd
- PHS Holdings Ltd
- PHS Hygiene Pty Ltd
- PHS Investments Ltd
- phs Serkonten SAU
- PHS Services Ltd
- PHS Washrooms Ltd
- PHS Western Ltd
- Pieters Transport (Pty) Ltd
- Pineapple Tech (Pty) Ltd
- Professional Provident Society Short-Term Insurance Company (Pty) Ltd
- PSG Financial Services Ltd
- PSG Konsult MS MAU Ltd
- Ramskop (Pty) Ltd
- Reivilo Veemark (Pty) Ltd
- Renasa Insurance Company Ltd
- Resource Support Services (IOM) Ltd
- Road Accident Fund
- S A Dorper Properties (Pty) Ltd
- Safire Insurance Company Ltd
- Sanlam Allianz Africa (Pty) Ltd
- Sanlam Emerging Markets Ireland Ltd
- Sanlam Mocambique Vida Companhia de Seguros S.A.
- Santam Ltd
- Santam Specialist Business Ltd
- Sarmady Communications LLC
- Sasria SOC Ltd
- SCOR Africa Ltd
- Seebeck 133 Ltd
- Senwes (Mauritius) Ltd
- Soras Assurance Generales Ltd
- Soras Group Ltd
- Soras Vie Ltd
- Standard Insurance Ltd
- StarNet Egypt SAE
- Strait Access Technologies Holdings (Pty) Ltd
- Swift Livestock (Pty) Ltd
- Swiss Re Corporate Solutions Africa (Pty) Ltd
- Teacrate Ltd
- Teacrate Rentals Ltd
- Trustco Group Holdings Ltd
- Tsumeb Mall (Pty) Ltd
- Twobil La Famille (Pty) Ltd
- Units on Park Street (Pty) Ltd
- USSL Ltd
- Vleissentraal Eiendomme (Pty) Ltd
- Vleissentraal Kaap (Pty) Ltd
- Vleissentraal Namibia (Pty) Ltd
- Vodafone Data LLC
- Vodafone Egypt Telecommunications S.A.E.
- Warmbad Veemark (RF) (Pty) Ltd
- Zire Fuels (Pty) Ltd
- Zire Technology (Pty) Ltd
Methodology
LOADING...
