Report Published: "South Africa Insurance Report Q4 2013"
New Financial Services market report from Business Monitor International: "South Africa Insurance Report Q4 2013"
[UKPRwire, Wed Nov 13 2013] Lacklustre economic growth, competitive pressures across much of the non-life segment and pedestrian growth in most of the life segment mean that 2013 will probably be a fairly challenging year for South Africa's insurers. Nevertheless, profitability is improving. The companies themselves are seeking opportunities through product innovation and expansion into the rest of Sub-Saharan Africa.
Key Insights And Key Risks
As of late 2013, the latest results that have been published by South Africa's insurance companies highlight their strengths and competitive advantages in a global context. Most have benefited from at least some of the following factors: rising demand for long-term savings products from 'retail mass' customers; development of new products; realisation of benefits of long-standing programs to boost the profitability of the products that are sold, and synergies from combinations of businesses. Unlike their counterparts in other countries, they appear to have suffered relatively little from the volatility in global financial markets. In general, they are upbeat about the prospects of (much) smaller new businesses in other countries throughout Sub-Saharan Africa (SSA).
Full Report Details at
Because of the peculiar history of South Africa, the life companies have enormous tolerance of emerging markets risk and particularly political risk. Compared with their counterparts in broadly comparable countries such as Taiwan (especially) or Israel, they have generally had to work with much smaller pools of organised savings. To a much greater extent than their Taiwanese or Israeli peers, they have built very substantial businesses in developed countries. In short, the combination of absolute size, financial strength, world-class corporate governance and orientation towards emerging and embryonic markets has served South African companies very well.
Longer-term trends in the non-life segment are less inspiring. The leading players' comments in relation to 2013 suggest that premiums will grow at single-digit rates over the year as a whole. We see no reason for non-life penetration to stop falling over the medium term. The non-life companies are working assiduously to control claims costs, boost productivity, develop new products, exploit economies of scale and, if possible, grow by acquisition. Like their counterparts in the life segment, they are looking at opportunities outside South Africa. However, for the medium term, they will likely continue to face downwards pressures on prices.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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.
You may also be interested in these related reports:
- Kenya Insurance Report Q4 2013
- South Korea Insurance Report Q4 2013
- South Africa Commercial Banking Report Q4 2013
- United Arab Emirates Insurance Report Q4 2013
- Kuwait Insurance Report Q4 2013