Short Term Insurance Industry in South Africa Report 2024 – COFI Bill May Help to Simplify Regulatory and Legal Compliance

Dublin, July 19, 2024 (GLOBE NEWSWIRE) — The “Short Term Insurance Industry in South Africa 2024” report has been added to ResearchAndMarkets.com’s offering.

This report on the short-term insurance industry includes information on the size of the industry, number of insurers, claims, industry performance measures and notable players. It provides information on the increase in climate-related risks, natural disasters and other major risks, and new technology and innovation, including the rise of insurtech.

There are profiles of 52 companies including well-known players such as Santam, Old Mutual, Hollard and OUTsurance, state-owned insurers such as South African Special Risk Insurance Association, Eskom’s Escap and Land Bank Insurance Company, and tech-driven companies such as Pineapple and Naked.

Key Market Insights

• The short-term insurance industry has been affected by the pandemic, riots and natural disasters.
• Experts have predicted that there will be pandemics in future and the severity and frequency of natural disasters will increase.
• The market share of the top four non-life companies, Santam, Guardrisk, Hollard and Old Mutual, has declined slightly. Santam has maintained its dominant position.
• New entrants to the industry such as insurtechs are still relatively small and are underwritten by traditional players.
• The industry faces continued challenges of affordability and risks from natural disasters compounded by insufficiently maintained infrastructure.

Market Trends

• After a decline in net profit before tax and dividends between 2019 and 2021, there has been a recovery to 2023.
• Concentration levels have remained steady with the top 5 companies making up around 44% of total gross written premiums.
• Large traditional insurance companies have invested in insurtech companies that have entered the industry.
• Net written premiums have declined as reinsurance costs have increased due to the growing severity and frequency of natural disasters.
• South Africa continues to be the largest insurance market on the continent.
• The number of companies has declined slightly.
• Turnover in non-life insurance has grown at a CAGR of 10.3% between 2017 and 2022.

Opportunities

• COFI Bill may help to simplify regulatory and legal compliance.
• Leveraging advanced technology to make insurance accessible to the uninsured.

Challenges

• Degradation of infrastructure that increases severity of damage and losses from insured events.
• Increasing frequency and severity of natural catastrophes.
• Poor economic environment making insurance less affordable.

Market Outlook

• Challenges such as constrained household incomes and natural catastrophes, are unlikely to materially improve over the next few years, putting upward pressure on premium pricing.
• Despite the challenges, the industry has managed to grow gross premiums received and recover profitability.
• Increasing pressure on household budgets may increase the need for customised solutions.
• The sector is expected to continue to make use of technological advancements to diversify revenues, lower costs and remain competitive.
• The increased use of technology could expose companies to cyberattacks and ransomware.

Companies Profiled

• Absa Insurance Company Ltd
• African Reinsurance Corporation (South Africa) Ltd
• AIG South Africa Ltd
• Allianz Global Corporate And Specialty South Africa Ltd
• Auto And General Insurance Company (Rf) Ltd
• Bidvest Insurance Ltd
• Bryte Insurance Company Ltd
• Budget Insurance Company (Rf) Ltd
• Centriq Insurance Company Ltd
• Chubb Insurance South Africa Ltd
• Clientele General Insurance Ltd
• Coface South Africa Insurance Company Ltd
• Compass Insurance Company Ltd
• Corporate Guarantee (South Africa) (Rf) Ltd
• Credit Guarantee Insurance Corporation Of Africa Ltd
• Dial Direct Insurance (Rf) Ltd
• Discovery Insure Ltd
• Escap Soc Ltd
• Export Credit Insurance Corporation Of South Africa Soc Ltd
• Federated Employers Mutual Assurance Company (Rf) (Pty) Ltd (The)
• First For Women Insurance Company (Rf) Ltd
• Firstrand Bank Ltd
• General Reinsurance Africa Ltd
• GIC Re South Africa Ltd
• Guardrisk Insurance Company Ltd
• Hannover Re South Africa Ltd
• Hollard Insurance Company Ltd (The)
• Indequity Group Ltd
• King Price Insurance Company Ltd
• Land And Agricultural Development Bank Of South Africa
• Liberty Group Ltd
• Lombard Insurance Company Ltd
• Miway Insurance Ltd
• Momentum Metropolitan Holdings Ltd
• Munich Reinsurance Company Of Africa Ltd
• Naked Financial Technology (Pty) Ltd
• Nedgroup Insurance Company Ltd
• Old Mutual Alternative Risk Transfer Insure Limited
• Old Mutual Insure Ltd
• Outsurance Insurance Company Ltd
• Pineapple Tech (Pty) Ltd
• Professional Provident Society Short-Term Insurance Company Ltd
• PSG Financial Services Ltd
• Renasap Insurance Company Ltd
• Road Accident Fund
• Safire Insurance Company Ltd
• Santam Ltd
• Sasria Soc Ltd
• Scor Africa Ltd
• Standard Insurance Ltd
• Swiss Re Corporate Solutions Africa Ltd
• Trustco Group Holdings Limited (Incorporated In Namibia)

Key Topics Covered:

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain
2.2. Geographic Position
2.3. Size of the Industry

3. LOCAL
3.1. State of the Industry
3.2. Key Trends
3.3. Key Issues
3.4. Notable Players
3.5. Corporate Actions
3.6. Regulations
3.7. Enterprise Development and Social Development

4. AFRICA

5. INTERNATIONAL

6. INFLUENCING FACTORS
6.1. Unforeseen Events
6.2. Economic Environment
6.3. Labour
6.4. Environmental Issues
6.5. Technology, R&D, Innovation
6.6. Government Support
6.7. Input Costs

7. COMPETITIVE ENVIRONMENT
7.1. Competition
7.2. Ownership Structure of the Industry
7.3. Barriers to Entry

8. INDUSTRY SUMMARY

9. OUTLOOK

10. INDUSTRY ASSOCIATIONS

For more information about this report visit https://www.researchandmarkets.com/r/jw91o0

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