The South African reinsurance segment grew at a CAGR of XX% during the review period, which was supported by the growth in the life insurance and personal accident and health insurance segments. The South African insurance industry accounts for XX% of the total direct premiums generated on the African continent. Reinsurance in the region is dominated by treaty reinsurance policies, while the facultative reinsurance product category accounts for a smaller share of the segment premium value. South Africa provided XX% of total reinsurance gross premiums from the African continent in 2010, which is an improvement from the XX% recorded in 2008.
As the overall South African insurance industry reaches higher levels of maturity, reinsurance is increasingly being used as a risk management tool to mitigate the potential losses of insurance companies. With the capital requirement for reinsurance companies currently only at a low level, a large number of international reinsurance companies are expected to enter the market. However, the overall growth of the reinsurance market will be influenced by international trends, since the South African economy is closely integrated with the global economy. |
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