Report Overview

South Africa Insurance Market – Industry Trends & Forecast Report, 2029

South Africa insurance market size was estimated at USD 50.57 billion in 2022. During the forecast period between 2023 and 2029, South Africa insurance market size is expected to grow at a significant CAGR of 10.52% reaching a value of USD 101.42 billion by 2029. One of the major factors driving the growth of the South Africa insurance market is the country’s underserved markets. However, a few developed economies, like South Africa, are extremely competitive as there are many well-funded local players. Major global companies are looking to take advantage of these uncovered regional prospects as well as ventures in crowded areas.

South Africa Insurance Market - Overview

A contract or policy that protects the insurer from financial losses is referred to as insurance. Life insurance, property and casualty insurance, and health and medical insurance are the three basic categories of insurance. Life insurance is a sort of insurance that covers a person's vital benefits package for their entire life. The African area is made up of various poor and growing economies, with the insurance industry continuing to grow slowly. However, the region's overall economic expansion over the previous decades has consistently created growth potential for the region's insurance sector.

Growth Drivers

Rising Literacy Rates

South Africa insurance market is expected to grow due to a notable increase in literacy rates and the number of educated young people. A generally enhanced educational environment is expected to significantly increase public knowledge of the benefits of insurance, opening up attractive business opportunities for market participants. Rapid urbanization, the rise of the middle class, the expansion of the working population, and improved internet connectivity are also expected to boost the growth of South Africa insurance market.

Technology Advancements

Changing business models, insurance companies are utilizing cutting-edge digital solutions to expand their operations and create product lines based on specialized client demand, which significantly boosts the market growth. Integration of technologies, such as cloud computing, artificial intelligence, and blockchain, is growing in importance and is expected to offer the lucrative opportunities for insurance market during the forecast period for loss prediction and prevention, risk monitoring, and claims processing.

Restraints

Costly Insurance Premium

All expenditures associated with the property, vehicle, medical treatment, etc. are covered by insurance. As it pays for all medical costs incurred while the policyholder is hospitalized for treatment, it offers the policyholder financial support. Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance. To maintain the insurance policy's validity, the policyholder must pay premiums regularly. According to the insurance plan, the majority of the time, the cost of the insurance premium is expensive, which is limiting the expansion of the market.

Impact of COVID-19 on South Africa Insurance Market

COVID-19 adversely affected a variety of manufacturing and service businesses because it caused workplace closures, supply chain disruptions, and transit limitations. However, the disparity between supply and demand and how it affects prices was only temporary. The spread of COVID-19 significantly boosted the demand for insurance policies. The health insurance industry expanded during the pandemic due to the dread of the disease as well as the rising expense of medical care. Also, health insurance providers established plans and methods to pay for the medical expenses associated with treating COVID-19-infected insurers.

South Africa Insurance Market

Segmental Coverage

South Africa Insurance Market - By Type

On basis of type, South Africa insurance market is divided into Life Insurance and Non-life Insurance (Automobile Insurance, Fire Insurance, Liability Insurance, and Other Insurance) segment. The life insurance segment dominates the South Africa insurance market. Life insurance focuses on assured and simplified life insurance plans for persons who would have trouble qualifying for ordinary coverage. These insurance products may make sense for someone who has a pre-existing medical condition. They are also excellent choices for people who do not have the time or willingness to undergo a medical checkup.

South Africa Insurance Market - By Distribution Channel

On basis of distribution channel, South Africa insurance market is divided into Insurance Brokers, Agencies, Direct Marketing, and Bancassurance segments. The direct market segment dominates the South Africa insurance market. Direct marketing includes telemarketing, internet business solicitation, and traditional media advertising. Customers can easily compare policy features and cost online, especially on the numerous websites that compare insurance costs. The direct response marketing strategy is the most cost effective for the consumer because it is far less expensive than using an agency network to promote insurance products and there is much more competition.

Competitive Landscape

Major players in the South Africa insurance market include Old Mutual Limited, Sanlam Limited, Discovery Limited, MMI Holdings Ltd, Liberty Holdings Limited, Hollard Insurance Group, Guardrisk Insurance Company Ltd, Santam Limited, Zurich Insurance Company Ltd, Mutual & Federal Insurance Company Ltd, Momentum Metropolitan Holdings Limited, Alexander Forbes Group Holdings Limited, African Rainbow Life, Bryte Insurance Company Limited, and Genworth Financial Mortgage Insurance Pty Ltd. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In April 2021 - Discovery Business Insurance launched four new products in South Africa. New insurance products were designed to address the specific needs of restaurant owners, healthcare professionals, lawyers and accountants, as well as heavy commercial vehicle operators.

Scope of the Report

By Type

• Life Insurance

• Non-life Insurance

• Automobile Insurance

• Fire Insurance

• Liability Insurance

• Other Insurances

By Distribution Channel

• Insurance Brokers

• Agencies

• Direct Marketing

• Bancassurance

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. The growing middle-class insurance benefits, including protection against unforeseen risks
         2. Government policies and regulations encourage the growth of the insurance sector and protect consumers.
         3. The rise in digitalization has enabled insurers to reach more customers and provide more personalized insurance solutions.
      2. Restraints
         1. The high levels of unemployment and poverty in South Africa
         2. The prevalence of fraud in the insurance sector is leading to higher costs and losses for insurance companies
      3. Opportunities
         1. The growing demand for micro-insurance products, especially in rural areas
         2. The rising demand for insurance products related to cyber security and other emerging risks
      4. Challenges
         1. The constantly evolving regulatory environment in South Africa creates uncertainty and additional compliance costs for insurers.
         2. Limited awareness and understanding of insurance products
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Insurance Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Life Insurance
         2. Non-life Insurance
            1. Automobile Insurance
            2. Fire Insurance
            3. Liability Insurance
            4. Other Insurances
      2. By Distribution Channel
         1. Insurance Brokers
         2. Agencies
         3. Direct Marketing
         4. Bancassurance
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Insurance Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on South Africa Insurance Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Old Mutual Limited
   2. Sanlam Limited
   3. Discovery Limited
   4. MMI Holdings Ltd
   5. Liberty Holdings Limited
   6. Hollard Insurance Group
   7. Guardrisk Insurance Company Ltd
   8. Santam Limited
   9. Zurich Insurance Company Ltd
   10. Mutual & Federal Insurance Company Ltd
   11. Momentum Metropolitan Holdings Limited
   12. Alexander Forbes Group Holdings Limited
   13. African Rainbow Life
   14. Bryte Insurance Company Limited
   15. Genworth Financial Mortgage Insurance Pty Ltd
   16. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Africa Insurance Segmentation 

Figure 2       South Africa Insurance Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       South Africa Insurance Market Size, By Value (USD Million), 2019–2029        

Figure 5       South Africa Insurance Market Share, By Type, By Value, 2019–2029  

Figure 6       South Africa Insurance Market Share, By Distribution Channel, By Value, 2019–2029

List of Tables

Table 1        South Africa Insurance Market Size, By Value (USD Million), 2019–2029

Table 2        South Africa Insurance Market Size, By Type, By Value, 2019–2029

Table 3        South Africa Insurance Market Size, By Distribution Channel, By Value, 2019–2029

Table 4        Old Mutual Limited Company Overview

Table 5        Old Mutual Limited Financial Overview

Table 6        Sanlam Limited Company Overview

Table 7        Sanlam Limited Financial Overview

Table 8        Discovery Limited Company Overview

Table 9        Discovery Limited Financial Overview

Table 10      MMI Holdings Ltd Company Overview

Table 11      MMI Holdings Ltd Financial Overview

Table 12      Liberty Holdings Limited Company Overview

Table 13      Liberty Holdings Limited Financial Overview

Table 14      Hollard Insurance Group Company Overview

Table 15      Hollard Insurance Group Financial Overview

Table 16      Guardrisk Insurance Company Ltd Company Overview

Table 17      Guardrisk Insurance Company Ltd Financial Overview

Table 18      Santam Limited Company Overview

Table 19      Santam Limited Financial Overview

Table 20      Zurich Insurance Company Ltd Company Overview

Table 21      Zurich Insurance Company Ltd Financial Overview

Table 22      Mutual & Federal Insurance Company Ltd Company Overview

Table 23      Mutual & Federal Insurance Company Ltd Financial Overview

Table 24      Momentum Metropolitan Holdings Limited Company Overview

Table 25      Momentum Metropolitan Holdings Limited Financial Overview

Table 26      Genworth Financial Mortgage Insurance Pty Ltd Company Overview

Table 27      Genworth Financial Mortgage Insurance Pty Ltd Financial Overview

Table 28      Other Prominent Players Company Overview

Table 29      Other Prominent Players Financial Overview