"South Africa Insurance Report Q2 2016" Published

The USD projections for premiums in South Africa ' s resilient insurance sector give a better indication of real trends than the ZAR figures, which are boosted by persistently high inflation. A challenging economic environment and the low levels of income for many households present headwinds in both segments. Nevertheless, the companies are responding through effective control of costs, product innovation, or skilful execution of multi-channel distribution strategies. In both of the main segments, the leading companies benefit from being elements of large and diverse financial groups.

Key Updates And Forecasts

We are not making changes to our projections for life insurance premiums this quarter. We anticipate that premiums will rise by around 9% annually in ZAR terms through the forecast period. The effect of this is that life penetration should rise from the current (very high) level of 11.8% of GDP to 12.3% in 2020. In essence, growth will largely be the consequence of the fact that that life insurance is an attractive asset class for those South African households and companies that can afford it. At the margin, though, particular companies will benefit from selling (micro-)insurance products to first-time users.

Full Report Details at
- http://www.fastmr.com/prod/1152919_south_africa_insurance_report.aspx?afid=301

Nor are we making changes to our projections for non-life insurance premiums. We anticipate that premiums will rise by around 7% annually in ZAR terms through the forecast period. This is mainly the result of first-time users in the motor vehicle insurance sub-sector, which accounts for over 40% of total non-life premiums. Revenues of the motor insurers will also be boosted by inflation. First time users - and relentless increases in medical costs - should ensure that health & personal accident insurance is the fastest growing of the larger sub-sectors: we expect that premiums will rise by around 11% annually. Conversely, price competition in the property insurance sub-sector should limit annual growth to below 5% for much of the forecast period. The leading companies have recently shown that they can contain claims (and other) costs: this will likely remain the case during the forecast period.

The South Africa Insurance Report has been researched at source and features BMI Research'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

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)