Insurers are aware that their legacy products are becoming an increasing cost burden relative to the value they provide to the insurance company and the customer as the book shrinks, according to a report released by global professional services firm Deloitte.
Living annuity policyholders withdrew, on average, 6.6% of their invested capital as income in 2023, the lowest average living annuity drawdown rate recorded in the past five years.
The number of insurance fraud incidents in South Africa has increased, with two concerning trends emerging in recent years that are murder for insurance payouts and deceased estate fraud, according to Mr Jean van Niekerk, convenor of the Forensic Standing Committee of the Association for Savings and Investment South Africa (ASISA).
The South African government is exploring options for purchasing insurance for certain climate-related disaster events, where such a practice would not undermine Budget sustainability.
South African pharmacy group Dis-Chem Pharmacies has said that it will launch its insurance business, Dis-Chem Life, in the first quarter of 2025, reported Reuters.
South Africa's National Treasury is exploring regulations to encourage the use of financial instruments to tackle climate change, including catastrophe bonds and parametric insurance, according to a report by Bloomberg.
Sasria SOC, a state-owned non-life insurance company, is currently participating in engagements with government, regulators and other stakeholders on potential ways to expand its coverage, according to South Africa's Finance Minister Mr Enoch Godongwana.
The insurance industry stabilised in 2023 following muted natural catastrophe events and the positive effects of strategic initiatives implemented by insurers over the last few years to moderate risk exposures, such as premium rate increases and underwriting limitations, according to KPMG South Africa.
Financial services group Discovery, which is South Africa's biggest health insurer, has reported a jump in profits for the financial year ended 30 June 2024 (FY2024).
A number of car owners in South Africa believe that insurance is unnecessary after paying off their car financing, according to the results of a survey by the global information and insights company TransUnion.