Non-Life Insurance in South Africa, Key Trends and Opportunities to 2016: Introduction of Compulsory Motor Third-Party Liability Insurance to Drive Market Growth

South Africa is the largest insurance market in the African continent, dominating the region with nearly 80% of the total direct premiums in both life and non-life segments. According to the Swiss Re-Sigma ‘World Insurance in 2010’ study, South Africa is among the top 20 emerging insurance markets which indicate promising growth in the next decade. The non-life segment will also grow strongly during the forecast period, which will be driven by the country’s expanding construction and automobile industries, regulatory changes, introduction of new insurance policies and possible increase in the foreign direct investment (FDI) limit for insurance.

Scope

• This report provides a comprehensive analysis of the non-life insurance market in South Africa:
• It provides historical values for South Africa’s non-life insurance market for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
• It offers a detailed analysis of the key sub-segments in South Africa’s non-life insurance market, along with market forecasts until 2016
• It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions
• It analyses the various distribution channels for non-life insurance products in South Africa
• Using Porter’s industry-standard “Five Forces” analysis, it details the competitive landscape in South Africa for the non-life insurance business
• It provides a detailed analysis of the reinsurance market in South Africa and its growth prospects
• It profiles the top non-life insurance companies in South Africa and outlines the key regulations affecting them

Key highlights

• Rapid growth in GDP, rising consumer disposable income and increasing awareness among people have been major growth drivers in the South African non-life insurance market
• Motor insurance was the largest category in the non-life insurance segment in 2011, followed by the property insurance category
• South African non-life insurance segment growth will be driven by the country’s improving credit availability and expanding automobile, real estate and construction industries
• The distribution channels registered a rising number of non-life insurance policy sales since the adverse impact of the recession abated in 2010 in South Africa
• The increasing number of road accidents in South Africa has encouraged the enactment of compulsory motor third-party liability insurance
• Future growth in the South African non-life insurance market is expected to encourage foreign companies to enter the country due to the segment’s strong growth prospects and the country’s rising consumer awareness about the benefits of insurance