(MENAFNEditorial)
We have a positive outlook for South Africa's overall insurance sector over the 2015-2019 period. While the rand's ongoing depreciation against the dollar is suppressing the development of premiums in USD terms we confirm medium single-digit growth rates in local currency terms in both the life and non-life segments. Consistently accounting for over 80% of total written insurance premiums life insurance is set to account for the predominant part of the industry's overall growth in the coming years. Interestingly while the largest sub-segments - motor vehicle and property insurance - are seeing their non-life market shares fall the sluggish economic growth has brought credit-financial guarantee insurance to the fore .
We expect that South Africa's insurance sector will exhibit steady growth over the next five years; based on our total premiums forecast in terms of the country's local currency. Conversely taking into account the ongoing depreciation of the rand against the USD we see short-term premiums (in USD terms) decline followed by sluggish growth in 2016 and the years beyond. In spite of the tough economic conditions characterising this market we identify various factors residing in sectors such as autos and healthcare in addition to the rising incomes among the country's growing middle class which we believe will help insurers to grow their written premiums in the face of economic challenges in the coming years.
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There is considerable scope for future growth in the South African life insurance segment as has become evident from companies' financial results and their forward guidance. As the middle class grows healthcare provision improves and the population becomes increasingly more aware of the need and benefits of having life insurance we expect increasing demand for medicines and life insurance. Especially with the introduction of micro-insurance targeting the low-income population in combination with the rapid...
The South Africa Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments key growth drivers and risk management projections including the macroeconomic situation government policy regulatory environment and the level of development and potential for growth broken down by line. Leading insurers are profiled covering premiums products and services and competitive positioning.
BMI's South Africa Insurance Report provides professionals consultancies government departments regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the South African insurance industry.
Key Benefits
* Benchmark BMI's independent insurance industry forecasts for South Africa to test other views - a key input for successful budgeting and strategic business planning in South Africa's insurance market.
* Target business opportunities and risks in South Africa through our reviews of latest industry trends regulatory changes and major deals investments and macroeconomic developments.
* Exploit latest competitive intelligence on your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts and views covering the Life and Non-Life segments the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the insurance sector and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators supported by explicit assumptions plus analysis of key risks to the main forecasts. Indicators include:
* Life/non-life Premiums: Total premium growth (USDmn) premium growth (% y-o-y) penetration (% of GDP) density (USD per capita) for Life and Non-Life sectors claims reinsurance and assets and liabilities.
* Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor transport property personal accident health general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide an indices of highest to lowest appeal to investors with each position explained.
Company Profiles*
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
* Population: Male/female by age group active/pensionable/youth population % of total urban/rural population % of total.
* Freight: Tonnage – air freight rail freight road freight inland waterway.
* Motor: Fleet size by type of vehicle % change y-o-y.
* Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position business strategies and investment potential of the leading insurance companies.
Sources
The insurance Reports draw on an extensive network of primary sources such as multilateral organisations government departments industry associations chambers and company reports.
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