Insurance

The South African insurance industry is a regional giant, with nearly 80% of all direct premiums in Africa. The market is split into two regulated segments with separate legal frameworks and different representative bodies. The global financial crisis of 2008-09 had a deleterious effect on South African insurers. Both the long- and short-term segments faced internal challenges, such as lower investment yields and higher expenses, and external ones, including an increase in lapsed policies as households struggled with rising food prices and unemployment. The sector is facing new challenges, including shifting market dynamics and an evolving regulatory framework that will likely alter the day-to-day operations of licensed insurers. This chapter contains an interview with Barry Scott, CEO, South African Insurance Association.