South Africa Insurance Industry Forecast

Key Benefits | Executive Summary | Report Coverage | Contents | Competitive Landscape

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South Africa Insurance Industry Forecast

The South Africa Insurance Report

 

    • Independent 5-year insurance industry forecast for South Africa.
    • Original insurance market research and insurance sector trend analysis for South Africa’s insurance industry.
    • Competitive intelligence, regional insurance company rankings and SWOT analyses on international and domestic insurance companies in South Africa.

The South Africa Insurance Report has been researched at source and features latest available data for annual insurance premiums and claims; assets and investments; 5-year insurance industry forecasts for South Africa through end-2012; insurance company rankings and competitive landscapes for local insurers and multinational insurance subsidiaries in South Africa; and analysis of the latest insurance industry developments, trends and regulatory changes in South Africa.

Business Monitor International's South Africa Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the South African insurance industry.

Key Benefits of the South Africa Insurance Report

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    • Benchmark BMI’s Independent 5-Year Insurance Industry Forecast on South Africa
      to test other views - a key input for successful budgeting and planning in this strategic insurance market.
    • Target Business Opportunities & Risks in South Africa's Insurance Sector
      through our reviews of latest insurance industry trends, regulatory changes, and major deals, projects and investments in South Africa.
    • Exploit The Latest Competitive Insurance Intelligence & Company SWOTS
      on your competitors and peers in South Africa through our insurance company rankings by assets, premiums, income, market share, investments and leading products and services. View a list of BMI's ranked insurance companies for Middle East & Africa.

BMI's Coverage of the South Africa Insurance Industry

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South Africa Insurance Sector At A Glance

Key insights into the insurance market, covering industry trends, key players and the regulatory environment, plus snapshots of life and non-life premium values in local currency and US$.

Evolution of the South African Insurance Market

Analysis of recent developments in the local insurance market, including data on life and non-life premium values, density and penetration, dating from 1998.

BMI 5-Year Industry Forecasts for South Africa

Analysis of market growth drivers, including 5-year projections (to end-2011) for premium values. Forecasts section also includes BMI risk ratings on local economy, politics and business environment. Industry indicators covered include:
Number of life and non-life insurance companies; total and per capita Property/Casualty premiums and claims; total and per capita Life/Health premiums and claims; total premium income; total claims/expenses; total operating expenses; total assets and investments; industry density (per capita premiums) and penetration (premiums as a portion of GDP)

BMI 5-Year Macroeconomic Forecast for South Africa

BMI forecasts for all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Insurance Company Rankings in South Africa

Comparative company analyses and rankings by premium income (life and non-life). View a list of BMI's ranked insurance companies for Middle East & Africa

Insurance Industry Competitive Landscape in Middle East & Africa

A cross-border overview of key players and their market share across the region. Tables and graphs show country presence of multinationals throughout the region.

BMI's Executive Summary

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

South Africa's IBER is 67.6. Relative to other countries in the Middle East and Africa, it is a an attractive insurance market for foreign insurers, with an established and well developed market. Within the region, South Africa stands out for the size of both the non-life and life segments. While the potential for growth in both these segments exists, it is not as strong as the potential for other countries in the region. Despite political uncertainties, BMI's view is that Government policies are likely to remain constant over the longterm, maintaining the commendable regulatory framework which boosts South Africa's IBER. However, the IBER is held back by the volatility of GDP and the economic outlook, which is in part a function of the sensitivity of the South African economy to external factors.

Over the forecast period, we anticipate that non-life premiums will grow by 14% annually in local currency terms, by 10% in US$ terms and by 11% in EUR terms. Life premiums are expected to increase by 8% annually in local currency terms, by 5% in US$ terms and by 5% in EUR terms. The key driver of the growth in the non-life segment in 2007-2012 is the anticipated rise in nominal GDP from around US$268bn to US$372bn and an expected increase in non-life penetration from 3.04% of GDP to 3.5%. The key driver of the muted growth anticipated in the life segment is the envisaged rise in life density from a miniscule US$503 per capita in 2007 to US$630 per capita in 2012. South Africa's total population is likely to remain steady.

The competitive landscape in the non-life segment is characterised by fierce competition from large local players, but is nonetheless very open to participation by foreign groups – a fact to which South Africa's high score in this category of its IBER attests. Foreign insurers are a small presence generally in the life segments of Middle Eastern and African countries surveyed, and the openness component of South Africa's IBER with regard to the life segment (5 out of a possible 10) reflects this. South Africa's insurance sector is well developed, thanks in no small part to a regulatory framework that is conducive to the development of the sector.

The main weakness of South Africa's insurance sector is the prospect of the impact of slowing growth and possible high inflation impacting upon what is, in global terms, a comparatively low GDP per capita.

Contents of the South Africa Insurance Report

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Chapter 1 - The Sector At A Glance

Table: South Africa Insurance Overview (In Millions Of Currency Specified)

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution Of The Insurance Sector (In Millions Of Currency Specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections For South Africas Insurance Sector (In Millions Of Currency Specified)

Table: South Africa Insurance Drivers of Growth

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: South Africa Economic Indicators

Chapter 6 - Country Update

Political Risk Zuma Trial

Economic Risk Currency Volatility

Business Environment Need For Investment In Education

Chapter 7 - Analysis Of Competitive Conditions

Country Overview South Africa Non-Life Segment

Table: Middle East And Africa Non-Life Segment Rankings of Markets

Table: Middle East And Africa Presence Of Cross-Border Insurers Non-Life

Table: Middle East And Africa Selected Local Non-Life Insurers

Country Overview South Africa Life Segment

Table: Middle East And Africa Life Segment Rankings Of Markets

Table: Middle East And Africa Presence Of Cross-Border Insurers Life Segment

Table: Middle East And Africa Selected Local Life Insurers

Chapter 8 - Regional Context

Table: Middle East And Africa: Regional Context 2004 Premiums

Table: Middle East And Africa Regional Context Total Premiums 2004

Chapter 9 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 10 - Appendix

Table: Middle East And Africa - Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010 (Growth In US Dollar Terms)

Competitive Landscape for The Middle East and Africa Insurance
    Reports: Sample of Companies Ranked

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A cross-border overview of key players and their insurance market share across the Middle East and Africa. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Middle Eastern and African Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports  

Asia

Australia, China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam

Europe

Bulgaria, Croatia, Czech Republic, Estonia, Germany, Greece, Hungary, Kazakhstan, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, UK, Ukraine

Middle East and Africa

Bahrain, Egypt, Iran, Israel, Jordan & Lebanon, Kuwait, Nigeria, North Africa, Oman, Qatar, Saudi Arabia, South Africa, Turkey, UAE

The Americas

Argentina, Bermuda, Brazil, Caribbean, Mexico

 

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