Market Research Report
Strategic Market Intelligence: Life Insurance in South Africa - Key Trends and Opportunities to 2022
|Published by||GlobalData||Product code||841578|
|Published||Content info||35 Pages
Delivery time: 1-2 business days
|Strategic Market Intelligence: Life Insurance in South Africa - Key Trends and Opportunities to 2022|
|Published: April 29, 2019||Content info: 35 Pages||
The South African life insurance segment's net written premium (NWP) grew from ZAR369.2 billion (US$38.2 billion) in 2013 to ZAR440.9 billion (US$33.1 billion) in 2017, at a review-period CAGR of 4.5%. Favorable demographics will continue to support growth over the forecast period (2017-2022), at a CAGR of 3.4%.
The adoption of insurtech is gaining traction in South Africa as an increasing number of insurers are adapting, partnering or investing in insurtech startups. However, innovation is mostly concentrated towards general insurance product lines compared to life insurance, with a key focus on distribution channels. In 2018, the legal framework for microinsurance towards fulfilling the objective of expanding consumer access was introduced.
The Financial Services Board (FSB) supervised and regulated the industry in South Africa before its replacement by the Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA) on April 1, 2018. Composite insurers are not permitted in the South African insurance industry.
Insurers need to convert their current licenses and apply for a separate microinsurance license with the Prudential Authority. Microinsurers are permitted to issue products such as credit life insurance, risk policies and funeral cover. Under the Act, the maximum indemnity limit for life policies issued by microinsurers is ZAR100,000.0 (US$6,798.3).
In South Africa, corporate income tax applies to domestic companies on their worldwide income, while for foreign companies, the tax is charged on the income earned in South Africa. The standard rate of corporate income tax is 28%. Capital gains are taxed at the standard corporate income tax rate on realized capital gains. The standard rate of VAT applicable on general insurance - except for some zero-rated short-term insurance - is 15%.
The report "Strategic Market Intelligence: Life Insurance in South Africa - Key Trends and Opportunities to 2022", provides a detailed outlook by product category for the South African life insurance segment. It provides values for key performance indicators such as written premium, gross claims, life insurance penetration, and total assets during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the South African economy and demographics, and provides detailed information on the competitive landscape in the country.
The report brings together 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.
Companies mentioned: Old Mutual Life Assurance, MMI Group, Sanlam Life, Liberty Group, Alexander Forbes, Investec Assurance, Discovery Life Insurance, Allan Gray Life, Coronation Life Assurance, Sygnia Life.