Life Insurance in South Africa, Key Trends and Opportunities to 2020

Published: May, 2017 | Pages: 109 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)

Summary

Timetric’s 'Life Insurance in South Africa Key Trends and Opportunities to 2020' report provides in-depth market analysis, information and insights into the South African life insurance segment, including:

• An overview of the South African life insurance segment

• The South African life insurance segment’s growth prospects by category

• A comprehensive overview of the South African economy and demographics

• A comparison of the South African life insurance segment with its regional counterparts

• The various distribution channels in the South African life insurance segment

• Details of the competitive landscape in the life insurance segment in South Africa

• Details of regulatory policy applicable to the South African insurance industry

Synopsis

Timetric’s 'Life Insurance in South Africa, Key Trends and Opportunities to 2020' report provides a detailed outlook by product category for the South African life insurance segment, and a comparison of the South African insurance industry with its regional counterparts.

It provides key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, total assets, total investment income and retentions during the review period (2011-2015) and forecast period (2015-2020).

The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the South African economy and demographics, and provides detailed information on the competitive landscape in the country.

The report brings together Timetric’s research, modeling and analysis expertise, giving insurers access to information on segment dynamics and competitive advantages, and profiles of insurers operating in the country. The report also includes details of insurance regulations, and recent changes in the regulatory structure.

Scope

This report provides a comprehensive analysis of the life insurance segment in South Africa:

• It provides historical values for South Africa life insurance segment for the report’s 2011-2015 review period, and projected figures for the 2015-2020 forecast period.

• It offers a detailed analysis of the key categories in the South African life insurance segment, and market forecasts to 2020.

• It provides a comparison of the South African life insurance segment with its regional counterparts

• It analyzes the various distribution channels for life insurance products in South Africa.

• It profiles the top life insurance companies in South Africa and outlines the key regulations affecting them.

Reasons To Buy

• Make strategic business decisions using in-depth historic and forecast market data related to the South African life insurance segment, and each category within it.

• Understand the demand-side dynamics, key market trends and growth opportunities in the South African life insurance segment.

• Assess the competitive dynamics in the life insurance segment.

• Identify growth opportunities and market dynamics in key product categories.

• Gain insights into key regulations governing the South African insurance industry, and their impact on companies and the industry's future.

Key Highlights

• Life insurance accounted for 78.2% of the South African insurance gross written premium in 2015.

•Life insurance penetration was 11.4% in 2015 and was the highest in southern Africa.

• The South African life segment is highly concentrated, with the 10 leading insurers collectively accounting for 80.7% of the segment’s direct written premium in 2015.

• Brokers, agencies and bancassurance are the preferred distribution channels for the life segment in South Africa.

• The unemployment rate remained significantly high in South Africa during the review period, at 25.4%.

 Table of Content

1 Key Facts and Highlights

2 Executive Summary

3 Economy and Demographics

4 Segment Outlook
4.1 Regional Comparison
4.2 Segment Indicators
4.2.1 Gross written premium
4.2.2 Claims
4.2.3 Assets and investments

5 Distribution Channel Outlook

6 Competitive Landscape
6.1 Company Profiles
6.1.1 Old Mutual Life Assurance Company (South Africa) Ltd – company overview
6.1.2 Momentum Group Ltd – company overview
6.1.3 Liberty Group Ltd – company overview
6.1.4 Sanlam Life Insurance Ltd – company overview
6.1.5 Investec Assurance Ltd – company overview

7 Governance, Risk and Compliance
7.1 Legislation Overview and Historical Evolution
7.2 Latest Changes in Regulation
7.3 Legislation and Market Practice by Type of Insurance
7.3.1 Life insurance
7.3.2 Property insurance
7.3.3 Motor insurance
7.3.4 Liability insurance
7.3.5 Marine, aviation and transit insurance
7.3.6 Personal accident and health insurance
7.4 Compulsory Insurance
7.4.1 Third-party liability insurance for commercial flight operators
7.4.2 Unemployment insurance
7.4.3 Compensation for occupational diseases and injuries
7.4.4 Professional indemnity insurance
7.4.5 Environmental liability insurance
7.5 Supervision and Control
7.5.1 International Association of Insurance Supervisors
7.5.2 African Insurance Organization
7.5.3 Financial Services Board
7.5.4 South African Insurance Association
7.6 Non-Admitted Insurance Regulations
7.6.1 Overview
7.6.2 Intermediaries
7.6.3 Market practices
7.6.4 Fines and Penalties
7.7 Company Registration and Operations
7.7.1 Type of insurance organization
7.7.2 Establishing a local company
7.7.3 Foreign ownership
7.7.4 Types of license
7.7.5 Capital requirements
7.7.6 Solvency margin
7.7.7 Reserve requirements
7.7.8 Investment regulations
7.7.9 Statutory return requirements
7.7.10 Fee structure
7.8 Taxation
7.8.1 Insurance premium or policy taxation
7.8.2 Withholding taxes on premium paid overseas
7.8.3 Corporate tax
7.8.4 VAT
7.8.5 Captives
7.9 Legal System
7.9.1 Introduction
7.9.2 Access to court
7.9.3 Alternative dispute resolution

8 Databook
8.1 Policies and Premium
8.2 Claims and Expenses
8.3 Assets and Investments
8.4 Direct Marketing and E-Commerce
8.5 Insurance Brokers and Agencies
8.6 Bancassurance and Other Distribution Channels
8.7 Individual Life Insurance
8.8 Group Life Insurance
8.9 Individual Life – Single vs. Non-Single Premium
8.1 Group Life – Single vs. Non-Single Premium
8.11 Linked vs. Non-Linked Policies

9 Definitions and Methodology
9.1 Definitions
9.2 Methodology

10 About Timetric
10.1 Contact Timetric
10.2 About Timetric
10.3 Timetric’s Services
10.4 Disclaimer

List of Tables

Table 1: South African Life Insurance – Key Facts, 2015
Table 2: South African Life Insurance – Segment Shares of the Top Insurers, 2015
Table 3: South African Government Credit Ratings
Table 4: South African Life Insurance – Gross Written Premium (ZAR Billion and US$ Billion), 2011–2015
Table 5: South African Life Insurance – Gross Written Premium (ZAR Billion and US$ Billion), 2015–2020
Table 6: South African Life Insurance – Paid Claims (ZAR Billion and US$ Billion), 2011–2015
Table 7: South African Life Insurance – Paid Claims (ZAR Billion and US$ Billion), 2015–2020
Table 8: South African Life Insurance – Total Assets (ZAR Trillion and US$ Billion), 2011–2015
Table 9: South African Life Insurance – Total Assets (ZAR Trillion and US$ Billion), 2015–2020
Table 10: South African Life Insurance – Total Investment Income (ZAR Billion and US$ Billion), 2011–2015
Table 11: South African Life Insurance – Total Investment Income (ZAR Billion and US$ Billion), 2015–2020
Table 12: South African Life Insurance – Investment Portfolio (ZAR Billion), 2011–2015
Table 13: South African Life Insurance – Investment Portfolio (ZAR Billion), 2015–2020
Table 14: South African Life Insurance – Segment Shares of the Leading Insurers (%), 2014
Table 15: Old Mutual Life Assurance Company (South Africa) Ltd – Key Facts
Table 16: Old Mutual Life Assurance Company (South Africa) Ltd – Key Financials (US$ Billion), 2011–2015
Table 17: Momentum Group Ltd – Key Facts
Table 18: Momentum Group Ltd – Key Financials (US$ Billion), 2011–2015
Table 19: Liberty Group Ltd – Key Facts
Table 20: Liberty Group Ltd – Key Financials (US$ Billion), 2011–2015
Table 21: Sanlam Life Insurance Ltd – Key Facts
Table 22: Sanlam Life Insurance Ltd – Key Financials (US$ Billion), 2011–2015
Table 23: Investec Assurance Ltd – Key Facts
Table 24: Investec Assurance Ltd – Key Financials (US$ Million), 2011–2015
Table 25: South Africa – Insurance Regulatory Framework Key Features
Table 26: South Africa – Commission Rates for Health Insurance Policy
Table 27: South Africa – Maximum cost of credit life insurance
Table 28: South Africa – Life Insurance Regulatory Framework
Table 29: South Africa – Property Insurance Regulatory Framework
Table 30: South Africa – SASRIA Annual and Monthly Premium Rates
Table 31: South Africa – Motor Insurance Regulatory Framework
Table 32: South Africa – Liability Insurance Regulatory Framework
Table 33: South Africa – Corporate Tax Rates for the Financial Year 2016
Table 34: South African Life Insurance – Policies and Premium, 2011–2015
Table 35: South African Life Insurance – Policies and Premium, 2015–2020
Table 36: South African Life Insurance – Claims and Expenses, 2011–2015
Table 37: South African Life Insurance – Claims and Expenses, 2015–2020
Table 38: South African Life Insurance – Assets and Investments, 2011–2015
Table 39: South African Life Insurance – Assets and Investments, 2015–2020
Table 40: South African Life Insurance – Direct Marketing and E-Commerce, 2011–2015
Table 41: South African Life Insurance – Direct Marketing and E-Commerce, 2015–2020
Table 42: South African Life Insurance – Insurance Brokers and Agencies, 2011–2015
Table 43: South African Life Insurance – Insurance Brokers and Agencies, 2015–2020
Table 44: South African Life Insurance – Insurance Brokers and Agencies, 2011–2015
Table 45: South African Life Insurance – Insurance Brokers and Agencies, 2015–2020
Table 46: South African Life Insurance – Individual Life Insurance, 2011–2015
Table 47: South African Life Insurance – Individual Life Insurance, 2015–2020
Table 48: South African Life Insurance – Group Life Insurance, 2011–2015
Table 49: South African Life Insurance – Group Life Insurance, 2015–2020
Table 50: South African Life Insurance – Individual Life Insurance by Premium, 2011–2015
Table 51: South African Life Insurance – Individual Life Insurance by Premium, 2015–2020
Table 52: South African Life Insurance – Group Life Insurance by Premium, 2011–2015
Table 53: South African Life Insurance – Group Life Insurance by Premium, 2015–2020
Table 54: South African Life Insurance – Linked vs. Non-Linked Policies, 2011–2015
Table 55: South African Life Insurance – Linked vs. Non-Linked Policies, 2015–2020
Table 56: Insurance Industry Definitions"

List of Figures

Figure 1: South African Real GDP (ZAR Billion), 2011–2020
Figure 2: South African ZAR–US$ Exchange Rate, 2011–2020
Figure 3: South African Consumer Price Inflation (%), 2011–2020
Figure 4: South African Current Account Balance as Percentage of GDP (%), 2011–2015
Figure 5: South African Unemployment Rate, 2011–2020
Figure 6: South African Population by Age Group, 1990–2025
Figure 7: South African Life Insurance Penetration – Regional Comparison (%), 2015
Figure 8: South African Insurance Segment Direct Written Premium Shares – Regional Comparison (%), 2015
Figure 9: South African Life Insurance – Gross Written Premium (ZAR Billion), 2011–2020
Figure 10: South African Life Insurance – Paid Claims (ZAR Billion), 2011–2020
Figure 11: South African Life Insurance – Total Assets (ZAR Trillion), 2011–2020
Figure 12: South African Life Insurance – Total Investment Income (ZAR Billion), 2011–2020
Figure 13: South African Life Insurance – Investment Portfolio (ZAR Billion), 2011–2020
Figure 14: South African Life Insurance – Investment Portfolio Dynamics by Category, 2011–2020
Figure 15: South African Life Insurance – Segment Shares of the Leading Insurers (%), 2014
Figure 16: South Africa – Insurance Supervision and Control at Various Levels
Figure 17: South Africa – Insurance Regulatory Frameworks for Company Registration and Operation