Research conducted by KPMG through its South African Insurance Industry Survey 2016, shows which firms dominate the short-term insurance industry.
The financial service firm said that business activity in the insurance industry over the last
twelve to fifteen months in South Africa has been that of ‘disruptive innovation’.
Traditional insurers want to enjoy the growth rates that “more innovative” and niche players have attained and who have significantly contributed to the increase in gross written premium for the year of 11%, said Antoinette Malherbe, director and editor, financial services at KPMG.
“No longer are traditional expansion plans adequate. Thinking outside the box is key to make fundamental strides in an industry where market share is hard to come by,” Malherbe said.
The report said that while the insurance sector showed overall positive financial results for 2015, the outlook for 2016 is less certain.
KPMG said that brokers who have over the years increased fees without too much questioning from their clients are starting to feel the pressure, while cash-strapped consumers are continuing to compare their bottom-line spend.
The short-term insurance industry reported gross written premiums of R89.1 billion in 2015, up 11.4% compared to R80 billion written in 2014.
The market is still being dominated by the four largest insurers that underwrite
52.7% (2014: 52.1%) of the market’s gross written premiums (GWP).
Hollard replaced M&F as the second largest short-term insurer in the South African market in 2015.
Hollard and Guardrisk are the only two companies in the top 10 who have managed to increase market share.
The charts below reflect the GWP of the 10 largest short-term insurance companies.