Growth and optimism despite economic headwinds: South Africa Market Market Insights 2016

For the past 14 years, Swiss Re's Life and Health Africa team has been collecting valuable market survey data on the South African Individual Risk market. In 2017, a summary of this report has been made available to the market.

Market Insights 2016 looks at the volume and growth data for the Individual Risk market in South Africa.  The report covers new sales in individual mortality, critical illness, disability income, disability lump sum and hospital cash products. Data was collected from 18 SA providers.
The report shows that the market is growing in a difficult economic environment. Overall premium figures increased by 6.5% for the year, and the total market sum insured increased by 2.8%.

Thys Nieuwoudt, Head of Southern Africa, says: "At a time of economic pressure on the South African economy, the South African Individual Risk insurance market showed resilience and grew in terms of sum insured and annual premium. Growth in the direct sales channel is very encouraging, as this is an avenue with huge potential to close South Africa's life insurance protection gaps."

In addition, the team undertook a survey to investigate levels of optimism in the market. This survey, covering 13 major providers clearly shows that the market remains optimistic for future growth – especially regarding the potential for digital innovation. 83% of respondents were positive about ongoing prospects for the 2017 and beyond.

Demetre La Grange, Marketing Actuary at Swiss Re says, "The optimism survey results were surprising. In times when economic pressures are making life difficult for consumers and business alike, the industry remains very positive about the future. It was very encouraging to see that the focus on digital distribution is increasing

If you'd like a copy of this report, please click here to contact us.