There’s still room for growth in SA’s insurance market
Each stage in the evolution in the South African insurance market presents opportunities for growth and new business models, says Thokozile Mahlangu, chief executive of the Insurance Institute of South Africa (IISA).
Thokozile Mahlangu, chief executive, Insurance Institute of South Africa |
Bancassurance, new legislation, technological developments, changing customer behaviour as well as cutting edge fintech innovations by non-financial services firms have had a major impact on the current structure of the local insurance industry.
“Awareness of the mega-trends is just the first step. However, the lack of proper interpretation of these market changes can break an operation,” says Mahlangu.
It is important to have deeper market insights because on the surface the numbers alone can paint a very misleading picture. “If you measure insurance penetration in South Africa by the percentage of premiums generated – now exceeding R100bn annually in the short-term insurance sector alone according to a report by