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

Published: May, 2017 | Pages: 138 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)

Summary

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

• The South African non-life segment’s detailed outlook by product category

• A comprehensive overview of the South African economy and demographics

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

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

• Detailed analysis of natural hazards and their impact on the South African insurance industry

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

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

Synopsis

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

It provides values for key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, 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, explains the various types of natural hazard and their impact on the South African insurance industry, 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 non-life insurance segment in South Africa:

• It provides historical values for the South African non-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 non-life insurance segment, and market forecasts to 2020.

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

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

• It analyzes various natural and man-made hazards and their impact on South African insurance industry

• It profiles the top non-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 non-life insurance segment, and each category within it.

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

• Assess the competitive dynamics in the non-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

• Non-life insurance penetration stood at 2.5% in 2015, the largest in Southern Africa. 

• Property insurance was the largest category during the review period. 

• South African liability insurance was the third largest category during the review period, with a 4.7% share in terms of gross written premium in 2015.

• Marine, aviation and transit insurance was the smallest category in the South African non-life segment in 2015, accounting for 3.2% of the total non-life gross written premium.

• In terms of frequency, floods were the main hazard during the period, accounting for 37.9% of all natural disasters.  

• The South African non-life insurance segment is highly competitive, and contains both domestic and foreign insurers.

 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 Profitability
4.2.4 Assets and investments

5 Outlook by Category
5.1 Property Insurance
5.1.1 Product overview
5.1.2 Claims
5.1.3 Profitability
5.2 Motor Insurance
5.2.1 Product overview
5.2.2 Claims
5.2.3 Profitability
5.3 Liability Insurance
5.3.1 Product overview
5.3.2 Claims
5.3.3 Profitability
5.4 Marine, Aviation and Transit Insurance
5.4.1 Product overview
5.4.2 Claims
5.4.3 Profitability

6 Distribution Channel Outlook

7 Natural and Man-Made Hazards
7.1 Flooding
7.2 Droughts
7.3 Wildfires
7.4 Man-Made Disasters
7.5 Exposure

8 Competitive Landscape
8.1 Company Profiles
8.1.1 Santam – company overview
8.1.2 Hollard Insurance Company Ltd – company overview
8.1.3 Mutual & Federal – company overview
8.1.4 Guardrisk Insurance Company Ltd – company overview
8.1.5 Outsurance – company overview

9 Governance, Risk and Compliance
9.1 Legislation Overview and Historical Evolution
9.2 Latest Changes in Regulation
9.3 Legislation and Market Practice by Type of Insurance
9.3.1 Life insurance
9.3.2 Property insurance
9.3.3 Motor insurance
9.3.4 Liability insurance
9.3.5 Marine, aviation and transit insurance
9.3.6 Personal accident and health insurance
9.4 Compulsory Insurance
9.4.1 Third-party liability insurance for commercial flight operators
9.4.2 Unemployment insurance
9.4.3 Compensation for occupational diseases and injuries
9.4.4 Professional indemnity insurance
9.4.5 Environmental liability insurance
9.5 Supervision and Control
9.5.1 International Association of Insurance Supervisors
9.5.2 African Insurance Organization
9.5.3 Financial Services Board
9.5.4 South African Insurance Association
9.6 Non-Admitted Insurance Regulations
9.6.1 Overview
9.6.2 Intermediaries
9.6.3 Market practices
9.6.4 Fines and Penalties
9.7 Company Registration and Operations
9.7.1 Type of insurance organization
9.7.2 Establishing a local company
9.7.3 Foreign ownership
9.7.4 Types of license
9.7.5 Capital requirements
9.7.6 Solvency margin
9.7.7 Reserve requirements
9.7.8 Investment regulations
9.7.9 Statutory return requirements
9.7.10 Fee structure
9.8 Taxation
9.8.1 Insurance premium or policy taxation
9.8.2 Withholding taxes on premium paid overseas
9.8.3 Corporate tax
9.8.4 VAT
9.8.5 Captives
9.9 Legal System
9.9.1 Introduction
9.9.2 Access to court
9.9.3 Alternative dispute resolution

10 Databook
10.1 Policies and Premium
10.2 Claims and Expenses
10.3 Assets and Investments
10.4 Property Insurance
10.5 Property Insurance by Product
10.6 Motor Insurance
10.7 Motor Insurance by Product
10.8 Liability Insurance
10.9 Marine, Aviation and Transit Insurance

11 Definitions and Methodology
11.1 Definitions
11.2 Methodology

12 About Timetric
12.1 Contact Timetric
12.2 About Timetric
12.3 Timetric’s Services
12.4 Disclaimer

List of Tables

Table 1: South African Non-Life Insurance – Key Facts, 2015
Table 2: South African Non-Life Insurance – Segment Shares of the Top Insurers, 2015
Table 3: South African Government Credit Ratings
Table 4: South African Non-Life Insurance – Gross Written Premium (ZAR Billion and US$ Billion), 2011–2015
Table 5: South African Non-Life Insurance – Gross Written Premium (ZAR Billion and US$ Billion), 2015–2020
Table 6: South African Non-Life Insurance – Paid Claims (ZAR Billion and US$ Billion), 2011–2015
Table 7: South African Non-Life Insurance – Paid Claims (ZAR Billion and US$ Billion), 2015–2020
Table 8: South African Non-Life Insurance – Profitability Ratio (%), 2011–2015
Table 9: South African Non-Life Insurance – Profitability Ratio (%), 2015–2020
Table 10: South African Non-Life Insurance – Total Assets (ZAR Billion and US$ Billion), 2011–2015
Table 11: South African Non-Life Insurance – Total Assets (ZAR Billion and US$ Billion), 2015–2020
Table 12: South African Non-Life Insurance – Total Investment Income (ZAR Billion and US$ Million), 2011–2015
Table 13: South African Non-Life Insurance – Total Investment Income (ZAR Billion and US$ Million), 2015–2020
Table 14: South African Non-Life Insurance – Investment Portfolio (ZAR Billion), 2011–2015
Table 15: South African Non-Life Insurance – Investment Portfolio (ZAR Billion), 2015–2020
Table 16: South African Non-Life Insurance – Gross Written Premium by Category (ZAR Billion), 2011–2015
Table 17: South African Non-Life Insurance – Gross Written Premium by Category (ZAR Billion), 2015–2020
Table 18: South African Property Insurance – Paid Claims (ZAR Billion and US$ Billion), 2011–2015
Table 19: South African Property Insurance – Paid Claims (ZAR Billion and US$ Billion), 2015–2020
Table 20: South African Property Insurance – Loss Ratio (%), 2011–2015
Table 21: South African Property Insurance – Loss Ratio (%), 2015–2020
Table 22: South African Motor Insurance – Number of Registered Vehicles by Type (Thousand), 2011–2015
Table 23: South African Motor Insurance – Paid Claims (ZAR Billion and US$ Billion), 2011–2015
Table 24: South African Motor Insurance – Paid Claims (ZAR Billion and US$ Billion), 2015–2020
Table 25: South African Motor Insurance – Loss Ratio (%), 2011–2015
Table 26: South African Motor Insurance – Loss Ratio (%), 2015–2020
Table 27: South African Liability Insurance – Paid Claims (ZAR Billion and US$ Million), 2011–2015
Table 28: South African Liability Insurance – Paid Claims (ZAR Billion and US$ Million), 2015–2020
Table 29: South African Liability Insurance – Loss Ratio (%), 2011–2015
Table 30: South African Liability Insurance – Loss Ratio (%), 2015–2020
Table 31: South African Transport Network – Global Rankings
Table 32: South African Marine, Aviation and Transit Insurance – Passenger and Carrier Traffic, 2011–2015
Table 33: South African Marine, Aviation and Transit Insurance – Paid Claims (ZAR Million and US$ Million), 2011–2015
Table 34: South African Marine, Aviation and Transit Insurance – Paid Claims (ZAR Million and US$ Million), 2015–2020
Table 35: South African Marine, Aviation and Transit Insurance – Loss Ratio (%), 2011–2015
Table 36: South African Marine, Aviation and Transit Insurance – Loss Ratio (%), 2015–2020
Table 37: South African Non-Life Segment – Market Shares of Leading Insurers (%), 2015
Table 38: Santam – Key Facts
Table 39: Santam – Key Financials (US$ Million), 2011–2015
Table 40: Hollard Insurance Company Ltd – Key Facts
Table 41: Hollard Insurance Company Ltd – Key Financials (US$ Million), 2011–2015
Table 42: Mutual & Federal – Key Facts
Table 43: Mutual & Federal – Key Financials (US$ Million), 2011–2015
Table 44: Guardrisk Insurance Company Ltd – Key Facts
Table 45: Guardrisk Insurance Company Ltd – Key Financials (US$ Million), 2011–2015
Table 46: Outsurance – Key Facts
Table 47: Outsurance – Key Financials (US$ Million), 2011–2015
Table 48: South Africa – Insurance Regulatory Framework Key Features
Table 49: South Africa – Commission Rates for Health Insurance Policy
Table 50: South Africa – Maximum cost of credit life insurance
Table 51:South Africa – Life Insurance Regulatory Framework
Table 52:South Africa – Property Insurance Regulatory Framework
Table 53:South Africa – SASRIA Annual and Monthly Premium Rates
Table 54: South Africa – Motor Insurance Regulatory Framework
Table 55:South Africa – Liability Insurance Regulatory Framework
Table 56:South Africa – Corporate Tax Rates for the Financial Year 2016
Table 57: South African Insurance Industry – Policies and Premium, 2011–2015
Table 58: South African Insurance Industry – Policies and Premium, 2015–2020
Table 59: South African Non-Life Insurance – Claims and Expenses, 2011–2015
Table 60: South African Non-Life Insurance – Claims and Expenses, 2015–2020
Table 61: South African Non-Life Insurance – Assets and Investments, 2011–2015
Table 62: South African Non-Life Insurance – Assets and Investments, 2015–2020
Table 63: South African Non-Life Insurance – Property Insurance, 2011–2015
Table 64: South African Non-Life Insurance – Property Insurance, 2015–2020
Table 65: South African Non-Life Insurance – Property Insurance by Product, 2011–2015
Table 66: South African Non-Life Insurance – Property Insurance by Product, 2015–2020
Table 67: South African Non-Life Insurance – Motor Insurance, 2011–2015
Table 68: South African Non-Life Insurance – Motor Insurance, 2015–2020
Table 69: South African Non-Life Insurance – Motor Insurance by Product, 2011–2015
Table 70: South African Non-Life Insurance – Motor Insurance by Product, 2015–2020
Table 71: South African Non-Life Insurance – Liability Insurance, 2011–2015
Table 72: South African Non-Life Insurance – Liability Insurance, 2015–2020
Table 73: South African Non-Life Insurance – Marine, Aviation and Transit Insurance, 2011–2015
Table 74: South African Non-Life Insurance – Marine, Aviation and Transit Insurance, 2015–2020
Table 75: 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 Non-Life Insurance Penetration – Regional Comparison (%), 2015
Figure 8: South African Insurance Segment Gross Written Premium Shares – Regional Comparison (%), 2015
Figure 9: South African Non-Life Insurance – Gross Written Premium (ZAR Billion), 2011–2020
Figure 10: South African Non-Life Insurance – Paid Claims (ZAR Billion), 2011–2020
Figure 11: South African Non-Life Insurance – Profitability Ratio (%), 2011–2020
Figure 12: South African Non-Life Insurance – Total Assets (ZAR Billion), 2011–2020
Figure 13: South African Non-Life Insurance – Total Investment Income (ZAR Billion), 2011–2020
Figure 14: South African Non-Life Insurance – Investment Portfolio (ZAR Billion), 2011–2020
Figure 15: South African Non-Life Insurance – Investment Portfolio Dynamics by Category, 2011–2020
Figure 16: South African Non-Life Insurance – Gross Written Premium by Category (ZAR Billion), 2011–2020
Figure 17: South African Non-Life Insurance – Gross Written Premium Dynamics by Category, 2011–2020
Figure 18: South African Property Insurance – Construction Value Output by Category (ZAR Billion), 2011–2015
Figure 19: South African Property Insurance – Paid Claims (ZAR Billion), 2011–2020
Figure 20: South African Property Insurance – Earned Premium, Incurred Loss and Loss Ratio (ZAR Billion and %), 2011–2020
Figure 21: South African Motor Insurance – Number of Fatalities per Road User Group, 2014–2015
Figure 22: South African Motor Insurance – Paid Claims (ZAR Billion), 2011–2020
Figure 23: South African Motor Insurance – Earned Premium, Incurred Loss and Loss Ratio (ZAR Billion and %), 2011–2020
Figure 24: South African Liability Insurance – Paid Claims (ZAR Billion), 2011–2020
Figure 25: South African Liability Insurance – Earned Premium, Incurred Loss and Loss Ratio (ZAR Billion and %), 2011–2020
Figure 26: South African Marine, Aviation and Transit Insurance – Imports and Exports (ZAR Billion), 2010–2015
Figure 27: South African Marine, Aviation and Transit Insurance – Paid Claims (ZAR Million), 2011–2020
Figure 28: South African Marine, Aviation and Transit Insurance – Earned Premium, Incurred Loss and Loss Ratio (ZAR Billion and %), 2011–2020
Figure 29: South African – Frequency of Hazards by Type, 1990–2014
Figure 30: South African Mortality by Hazards Type, 1990–2014
Figure 31: South African Economic Loss by Hazards Type, 1990–2014
Figure 32: South African Non-Life Segment – Market Shares of Leading Insurers (%), 2015
Figure 33: South Africa – Insurance Supervision and Control at Various Levels
Figure 34: South Africa – Insurance Regulatory Frameworks for Company Registration and Operation