Insurances

The Insurances market in South Africa is projected to reach a gross written premium of US$61.54bn in 2024.
The market is dominated by Life insurances, with a projected market volume of US$31.10bn in the same year.
On average, individuals in South Africa are expected to spend US$1.01k per capita on insurance in 2024.
Comparing in South Africa to other countries, the United States is projected to have the highest nominal value in the Insurances market, reaching US$3.8tn in 2024.
The gross written premium in the Insurances market is expected to show an annual growth rate of 0.99% from 2024 to 2029 (CAGR 2024-2029), resulting in a market volume of US$64.65bn by 2029.
Once again, the United States is projected to generate the highest gross written premium Worldwide, reaching US$3.8tn in 2024.
South Africa's insurance market is witnessing a surge in demand for health insurance due to the rising healthcare costs and increasing awareness about the importance of having medical coverage.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in South Africa has been experiencing significant growth and transformation in recent years.

Customer preferences: Customers in South Africa are increasingly seeking more personalized insurance products that cater to their specific needs and lifestyle. This shift in preferences has led insurance companies to innovate and offer more flexible and customizable policies to attract and retain customers.

Trends in the market: One noticeable trend in the South African insurance market is the increasing adoption of digital technologies. Insurers are leveraging digital platforms to streamline processes, enhance customer experience, and offer online insurance services. This trend is driven by the growing tech-savvy population in the country and the need for convenient and accessible insurance solutions.

Local special circumstances: The regulatory environment in South Africa plays a significant role in shaping the insurance market. With a focus on consumer protection and financial stability, regulators are implementing measures to ensure transparency, fair practices, and sustainability within the industry. This regulatory framework influences product development, distribution channels, and overall market dynamics.

Underlying macroeconomic factors: The economic landscape in South Africa also impacts the insurance market. Factors such as GDP growth, unemployment rates, and disposable income levels influence the demand for insurance products. As the economy continues to evolve, insurance companies must adapt their strategies to cater to changing consumer behaviors and market conditions.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.