South Africa Property & Casualty Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Property & Casualty Insurance Market Analysis
The South African Property & Casualty Insurance Market is valued at about USD 5.1 Billion in the current year and is estimated to register a CAGR of more than 6% during the forecast period.
Africa's young population, with an increasing number of people of working age, offers a huge potential market for life insurance, health insurance, and other insurance products. As more young people enter the labor market and become financially independent, the need for different types of insurance products will continue to grow. The push towards financial literacy extends to the training of insurance professionals to ensure they are well-equipped to provide the appropriate products and services. With increased awareness and education, a culture of insurance is being created, and this is helping to grow and strengthen the industry in Africa.
The market is also supported by the presence of international companies and foreign investments in various industries in Africa. International companies often bring with them best practices from around the world, such as risk management, insurance coverage, and so on. The local insurance market is also stimulated by the collaboration of the insurance industry with banks or financial institutions, which has led to the development of new distribution channels. In addition, the development of micro-insurance products for low-income people and small businesses is also boosting the market outlook.
The property & casualty insurance market in South Africa is thriving due to the speed of digital transformation across sectors, the high penetration of internet and mobile devices, and the increasing demand for home insurance financing amongst consumers and companies.
Premiums for property insurance increased in 2022 due to (re)insured losses caused by social violence and climate-related nat-cats. The property line has a high protection gap as reinsurers are reluctant to cover nat-cats. The country's coal mining exposure is another area of (re)insurance concern, and insurers are looking for diversification to offset the decrease in premiums that will be caused by changing market conditions for clients in the coal mining industry.
The premium written for property and casualty insurance has been increasing over the years in the South African market. Motor insurance is one of the country's largest segments for P&C insurance, and the premium for the segment is increasing. Similarly, Homeowner insurance and Household content insurance are also showing constant growth over time. The increasing per capita income, along with an increase in GWP per capita for property and casualty insurance, is driving the market in South Africa.
South Africa Property & Casualty Insurance Market Trends
Digitalization and Automation is on the Rise
Africa is one of the fastest-growing insurance markets in the world, with a market value of USD 81.6 billion in 2022 and projected to reach USD 123.8 billion in 2028. However, while Africa accounts for 18% of the global population, the penetration rate of the insurance market in the continent is only about 2%.
Digitalization has revolutionized the insurance sector. Insurance companies are offering convenience, efficiency, and personalization to their customers. Insurtech companies use cutting-edge technologies to provide innovative insurance solutions and services based on customer preferences. This allows customers to compare different insurance policies and select the one that best suits their needs.
The average audience size of insurance companies is five times that of any other social network on Facebook. LinkedIn is the second largest social network for insurance companies, with an average audience size growth of 20% year-on-year in 2017. On YouTube, the average audience size (as measured by subscribers to a channel) grew by more than 55%. Insurance company audiences grew the least on Twitter. Instagram audiences grew by almost 20%. However, the average audience for insurance companies is lagging far behind the average audience size on other social networks.
Gross Written Premiums is on the Rise
Gross written premium in the South African general insurance market in 2021 stood at ZAR136,9 billion (USD 9,3 billion) and is projected to increase by more than 3% during the forecast period. Grid failure is a growing worry for South African insurers. Load shedding in the winter, but the grid has become unstable. Power cuts for long periods are common in the summer. Insurers have an important role to play. Grid failure can cause huge damage.
In September 2022, 'Stage 6' power cuts were introduced by state utility Eskom, which meant that most South Africans were without power for six to eight hours every day. Load shedding or blackouts aren't covered by insurance, but most insurers cover damage to sensitive electronics caused by surges. Damage to your home's contents or machinery caused by surges results in higher claims. Frequent surges also cause security systems to malfunction, resulting in increased theft and fires.
Africa's insurance premium total value in 2021 was approximately USD 74 billion. This equates to approximately one percent of the global insurance premium total. South Africa had the highest insurance premium participation on the continent. About USD 51 billion was paid into policies in the country for insured individuals and businesses. Morocco ranked second in the ranking of insurance premium total value at USD 6.3 billion.
South Africa Property & Casualty Insurance Industry Overview
The Property and Casualty Insurance market in South Africa is highly competitive. A large number of national and international players have their presence in the property and casualty insurance market in South Africa. The number of non-life insurers is decreasing in the country. In 2021, there were 55 primary non-life insurers, which decreased from 67 in 2020. Allianz Insurance SA, Bryte Insurance, and Chubb Insurance South Africa are some of the major players in the market.
South Africa Property & Casualty Insurance Market Leaders
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Santam Ltd
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Hollard Insurance Company Ltd
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Zurich Insurance Company South Africa Ltd.
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Old Mutual Insure Ltd.
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Bryte Insurance Company Ltd.
*Disclaimer: Major Players sorted in no particular order
South Africa Property & Casualty Insurance Market News
- February 2022: Old Mutual Limited announced that it became the first financial services company in Africa to deploy Tamr Core as part of an initiative to better serve its customers. By adopting a modern approach to master data management using Tamr, Old Mutual was to further embed its 'purpose-led technology' philosophy.
- December 2022: Zurich Insurance Group (Zurich) announced that its subsidiary Zurich Investments Life S.p.A. completed the sale of its life and pensions back book, composed of both traditional and unit-linked policies, to the Portuguese insurance company GamaLife - Companhia de Seguros de Vida, S.A. (GamaLife). The transaction did not change contractual obligations toward policyholders and distributors. Zurich was expected to continue to offer innovative protection and unit-linked solutions to customers in Italy.
South Africa Property & Casualty Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Driver
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insight on Technologial Adoption in the Market
4.6 Insight on Various Government Regulations in the Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Motor Insurance
5.1.2 Homeowner Insurance
5.1.3 Home-Content Insurance
5.1.4 Other P&C
5.2 By Distribution Channel
5.2.1 Agents
5.2.2 Brokers
5.2.3 Banks
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Momentum Insurance
6.2.2 OUTsurance
6.2.3 Old Mutual Insure
6.2.4 Compass Insure
6.2.5 Bryte Insurnace
6.2.6 Allianz
6.2.7 Hollard
6.2.8 Auto and General Insurance Company
6.2.9 Discovery Insure
6.2.10 Chubb Insurance South Africa*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER
South Africa Property & Casualty Insurance Industry Segmentation
Property and Casualty Insurance is the type of coverage that protects the policyholder's things and property, such as home, car, and other belongings. It also includes liability coverage, which protects you if you're found legally responsible for an accident that causes injuries to another person or damages to their property.
This report aims to provide a detailed analysis of the Property and Casualty insurance market in South Africa. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights into various product types. Also, it analyses the key players and the competitive landscape in the Property and Casualty insurance market in South Africa.
The Property and Casualty Insurance market in South Africa can be segmented by Product Type (Motor Insurance, Home-Owner Insurance, Home Content Insurance, and Other P&C) and Distribution Channel (Agents, Brokers, Banks, and Other Distribution Channels). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Product Type | |
| Motor Insurance | |
| Homeowner Insurance | |
| Home-Content Insurance | |
| Other P&C |
| By Distribution Channel | |
| Agents | |
| Brokers | |
| Banks | |
| Other Distribution Channels |
South Africa Property & Casualty Insurance Market Research FAQs
What is the current South Africa Property & Casualty Insurance Market size?
The South Africa Property & Casualty Insurance Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in South Africa Property & Casualty Insurance Market?
Santam Ltd, Hollard Insurance Company Ltd, Zurich Insurance Company South Africa Ltd., Old Mutual Insure Ltd. and Bryte Insurance Company Ltd. are the major companies operating in the South Africa Property & Casualty Insurance Market.
What years does this South Africa Property & Casualty Insurance Market cover?
The report covers the South Africa Property & Casualty Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Property & Casualty Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Property and Casualty Insurance in South Africa Industry Report
Statistics for the 2024 Property and Casualty Insurance in South Africa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Property and Casualty Insurance in South Africa analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
