Summary

South Africa is known for its well-developed, highly liberalized financial sector. Particularly, the insurance industry of the country is the most developed in the entire African continent. As per our research report "South African Insurance Industry Forecast to 2013", South Africa account for the bulk of the Africa's total insurance business, i.e. a lion's share of around 85%. In this way, it has left Tanzania and other 51 African countries with a collective share of merely 15%.

In the course of our research, we found that the South African insurance industry showed a remarkable resilience to the economic turmoil of 2008 that entangled most of the industries across the world. In fact, the long-term insurance sector of the country continued the trend of positive growth during this adverse time and registered about 11.5% growth rate during 2008. In future also, it is anticipated to maintain the healthy growth rate.

Most importantly, the policyholders not only maintained their premiums for life and disability insurance and fund policies in 2008, but they also continued to increase them. The life insurance industry managed to attract new individual recurring as well as single premiums of ZAR 65 Billion during 2008, an increase of 14% over 2007.

The report also highlights that with the increased demand of medical, motor and property insurance, short-term insurance industry is also set to rollout tremendously in the coming years. By net premium, short-term insurance industry is expected to grow at a CAGR of about 11% during 2009-2013. Growing demand for liability and engineering insurance will favor the future growth.

"South African Insurance Industry Forecast to 2013" provides extensive research and in-depth analysis of the insurance sector of South Africa. The report will help clients to evaluate the leading-edge opportunities critical to the success of the country's insurance industry. It also provides future outlook on the key segments of the industry, besides shedding light on the key players in the industry (including both domestic as well as foreign players).

The forecast given in the report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. This forecast is based on a correlation between past market growth and growth of base drivers.

Table of Contents

1. Analyst View
2. Macroeconomic Analysis
3. Insurance Industry Overview
4. Long-term Insurance
4.1 By Insurer
4.1.1 Typical
4.1.2 Niche
4.1.3 Link Investment
4.1.4 Cell Captive
4.1.5 Assistance
4.2 By Product
4.2.1 Individual Life
4.2.2 Group Schemes and Pension Funds
5. Short-term Insurance
5.1 By Insurer
5.1.1 Typical
5.1.2 Cell Captive
5.1.3 Niche
5.1.4 Captive
5.2 By Product
5.2.1 Motor Insurance
5.2.2 Property Insurance
5.2.3 Accident and Health Insurance
5.2.4 Engineering Insurance
5.2.5 Liability Insurance
6. Reinsurance Market
7. Government Initiatives
7.1 Customized Product Development
7.2 Consumer Awareness Campaigns
7.3 Life Insurers Waved Existing HIV/AIDS Exclusions
8. Industry Trends
8.1 On-line Insurance Selling
8.2 Insurance Outsourcing
8.3 Customized Insurance Products
8.4 Bancassurance
8.5 Investment Pattern
8.6 Rise in Fraudulent Claims
8.7 Low Degree of Awareness
8.8 Policy Lapses and Surrenders
8.9 Regulatory Challenges
9. Competitive Landscape
10. Key Players
10.1 Long-term Insurance
10.1.1 Old Mutual plc
10.1.2 Sanlam Limited
10.1.3 Liberty Group Limited
10.1.4 Liberty Holdings Ltd
10.2 Short-term Insurers
10.2.1 Alexander Forbes Ltd
10.2.2 Santam Limited
10.2.3 Mutual & Federal Insurance Company Limited
10.2.4 Zurich Insurance Company SA Ltd.

List of Figures:

Figure 2-1: Real GDP Growth (%), 2008-2013
Figure 2-2: Per Head Disposable Income (US$), 2008-2013
Figure 2-3: Population Growth (%), 2008-2013
Figure 3-1: Share of South Africa in African Insurance Business (2008)
Figure 3-2: Insurance Net Premium Income (Billion ZAR), 2007 & 2008
Figure 3-3: Forecast for Insurance Net Premium Income (Billion ZAR), 2009-2013
Figure 3-4: Share of Long-term and Short-term Insurance in Net Premium Income (2008)
Figure 4-1: Long-term Insurance Industry Assets (Trillion ZAR), 2007 & 2008
Figure 4-2: Life Insurance Net Premium Income (Billion ZAR), 2007 & 2008
Figure 4-3: Forecast for Life Insurance Net Premium Income (Billion ZAR), 2009-2013
Figure 4-4: Life Insurance Benefits Paid (Billion ZAR), 2007 & 2008
Figure 4-5: Recurring Net Premium for Long-term Typical Insurers (Million ZAR), 2004-2008
Figure 4-6: Non-recurring Net Premium for Long-term Typical Insurers (Million ZAR), 2004-2008
Figure 4-7: Claims Ratio for Long-term Typical Insurers (%), 2004-2008
Figure 4-8: Individual Policy Lapse Rate for Long-term Typical Insurers (%), 2004-2008
Figure 4-9: Net Premium for Long-term Niche Insurers (Million ZAR), 2004-2008
Figure 4-10: Claims Ratio for Long-term Niche Insurers (%), 2004-2008
Figure 4-11: Individual Policy Lapse Rate for Long-term Niche Insurers (%), 2004-2008
Figure 4-12: Net Premium for Long-term Link Investment Insurers (Million ZAR), 2004-2008
Figure 4-13: Claims Ratio for Long-term Link Investment Insurers (%), 2004-2008
Figure 4-14: Individual Policy Lapse Rate for Long-term Link Investment Insurers (%), 2004-2008
Figure 4-15: Net Premium for Long-term Cell Captive Insurers (Million ZAR), 2004-2008
Figure 4-16: Claims Ratio for Long-term Cell Captive Insurers (%), 2004-2008
Figure 4-17: Net Premium for Long-term Assistance Insurers (Million ZAR), 2004-2008
Figure 4-18: Claims Ratio for Long-term Assistance Insurers (%), 2004-2008
Figure 4-19: Individual Policy Lapse Rate for Long-term Assistance Insurers (%), 2004-2008
Figure 4-20: Individual Life Insurance Premium (Billion ZAR), 2007 & 2008
Figure 4-21: Individual Life Insurance New Premium (Billion ZAR), 2007 & 2008
Figure 4-22: Group Schemes and Pension Funds Premium (Billion ZAR), 2004-2008
Figure 4-23: Forecast for Group Schemes and Pension Funds Premium (Billion ZAR), 2009-2013
Figure 5-1: Short-term Insurance Net Premium (Million ZAR), 2004-2008
Figure 5-2: Forecast for Short-term Insurance Net Premium (Million ZAR), 2009-2013
Figure 5-3: Short-term Insurance Net Premium by Type of Insurer (%), 2008
Figure 5-4: Net Premium for Short-term Typical Insurers (Million ZAR), 2004-2008
Figure 5-5: Underwriting Profit for Short-term Typical Insurers (Million ZAR), 2004-2008
Figure 5-6: Underwriting and Investment Income for Short-term Typical Insurers (Million ZAR), 2004-2008
Figure 5-7: Claims Ratio for Short-term Typical Insurers (%), 2004-2008
Figure 5-8: Net Premium for Short-term Cell Captive Insurers (Million ZAR), 2004-2008
Figure 5-9: Underwriting Profit for Short-term Cell Captive Insurers (Million ZAR), 2004-2008
Figure 5-10: Underwriting and Investment Income for Short-term Cell Captive Insurers (Million ZAR), 2004-2008
Figure 5-11: Claims Ratio for Short-term Cell Captive Insurers (%), 2004-2008
Figure 5-12: Net Premium for Short-term Niche Insurers (Million ZAR), 2004-2008
Figure 5-13: Underwriting Profit for Short-term Niche Insurers (Million ZAR), 2004-2008
Figure 5-14: Underwriting and Investment Income for Short-term Niche Insurers (Million ZAR), 2004-2008
Figure 5-15: Claims Ratio for Short-term Niche Insurers (%), 2004-2008
Figure 5-16: Net Premium for Short-term Captive Insurers (Million ZAR), 2004-2008
Figure 5-17: Underwriting Profit for Short-term Captive Insurers (Million ZAR), 2004-2008
Figure 5-18: Underwriting and Investment Income for Short-term Captive Insurers (Million ZAR), 2004-2008
Figure 5-19: Claims Ratio for Short-term Captive Insurers (%), 2004-2008
Figure 5-20: Net Premium for Short-term Insurance by Product (%), 2007
Figure 5-21: Motor Insurance Net Premium (Million ZAR), 2006-2008
Figure 5-22: Forecast for Motor Insurance Net Premium (Million ZAR), 2009-2013
Figure 5-23: Property Insurance Net Premium (Million ZAR), 2006-2008
Figure 5-24: Forecast for Property Insurance Net Premium (Million ZAR), 2009-2013
Figure 5-25: Accident and Health Insurance Net Premium (Million ZAR), 2006-2008
Figure 5-26: Forecast for Accident and Health Insurance Net Premium (Million ZAR), 2009-2013
Figure 5-27: Engineering Insurance Net Premium (Million ZAR), 2006-2008
Figure 5-28: Forecast for Engineering Insurance Net Premium (Million ZAR), 2009-2013
Figure 5-29: Liability Insurance Net Premium (Million ZAR), 2006-2008
Figure 5-30: Forecast for Liability Insurance Net Premium (Million ZAR), 2009-2013
Figure 6-1: Long-term Reinsurance Net Premium (Million ZAR), 2007 & 2008
Figure 6-2: Short-term Reinsurance Net Premium (Million ZAR), 2007 & 2008
Figure 8-1: Investment Spread for Short-term Insurers (%), 2007
Figure 8-2: Investment Spread for Long-term Insurers (%), 2007

List of Tables:

Table 3-1: Number of Insurance Companies by Segment (March 2008)
Table 4-1: Number of Long-term Insurers (March 2007 & March 2008)
Table 5-1: Number of Short-term Insurers by Type (March 2007 & March 2008)
Table 9-1: Top 5 Long-term Insurers by Assets (Million ZAR), 2006-07
Table 9-2: Top 5 Short-term Insurers (Million ZAR), 2006-07