1. South Africa is considered the largest market for insurance in Africa
It is not difficult to find insurance companies as the country is full of insurance companies here and there. In fact, the region has been dominated by insurance companies with 80% of the direct total premium on both the non-life and life segments.
2. The life insurance segment in South Africa has been unaffected by the global economic crisis
Surprisingly, the past economic crises had little or no effect at all on the country’slife insurance segment. This is because of a mixture of circumstantial, fundamental, and historical factors. In addition, the different financial institutions were not affected by the global economic crisis because of their limited exposure to foreign financial institutions.
3. Expansion paved the way for growth in the sales of the insurance industry
The growth sales of the insurance industry were due to the rapid rate of expansion of the distribution channels across the rural areas in the region.
4. By 2015, new regulatory regimes for the South African insurance industry will be implemented
By the year 2015, a new regulatory regime called the “Solvency Assessment and Management (SAM)” is expected to be implemented for the South African insurance industry. Although still a framework, it is still currently being developed to be able to have a risk-based regime which would effectively supervise the regulation of both short-term and long-term insurers in the region.
5. Four large competitors and a number of smaller competitors dominate the South African life insurance industry
The South African life insurance industry is said to be dominated by four large competitors and other smaller companies. Each company varies greatly from another through the different deals they offer their clients. As a teaser, the leading insurance companies are Life Insurance Today, Discover Life, Liberty Life, Momentum, Old Mutual, PPS, and Altrisk