Standard & Poor’s Ratings Services have assessed industry and country risk for the South African property and casualty (P/C) insurance sector as intermediate. Our assessment captures the typical level of risks that P/C insurers operating in South Africa face and reflects our view of country risk as moderate and industry risk as intermediate. We think growth prospects are limited as penetration is already relatively high.
Two studies* by CoreData Research reveal almost 70% of financial advisors in South Africa say they are planning for upcoming regulatory changes in the industry, but less than a fifth have business models ready to deal with these developments. The rest may find themselves on the back foot once any change comes into force.
By Richard Rattue and Phil Billingham, Managing Director at Compli-Serve SA and Director of The TCF Partnership
In international compliance, the word of the moment is ‘convergence’. This is a useful word. It reflects the particular issues and limitations of their own domestic demographic and economic situation. Around the world, smart firms are gauging the direction of travel, and ensuring they stay ahead of the pack. Some in South Africa are already doing this. Will you?
A unique Swiss Re study, in partnership with the University of St Gallen, analyses why German consumers choose one term life insurance product over another. The findings reveal useful insights for insurers looking to gain a competitive edge in product design. Opinion surveys often show consumers saying that they’d be willing to purchase life insurance – often at a price higher than the market average.
In this CreditMatters TV segment, Standard & Poor’s Associate Director Neil Gosrani explains the high assessment of Nigeria’s life and P/C insurance industries, discusses growth prospects and how this compares to other African markets.
Graham Anderson, Principal Officer of Profmed, the medical scheme designed exclusively for graduate professionals, commends the Department of Health for these efforts saying poor lifestyle choices have increased the prevalence of lifestyle diseases such as cancer, heart disease and diabetes.
Criminals tend to follow opportunities in terms of people and places and in some cases this does not only occur with house burglaries but when people are on their holiday. The SAIA is actively involved on various levels with stakeholders in the law enforcement community through the South African Insurance Crime Bureau (SAICB) to address crime related activity affecting the Short-term Insurance industry.
A new specialised Underwriting Management Agency (UMA), Commuter and General Underwriting Managers Pty Limited (Commuter & General) has been formed by Derek Vermeulen, who has been providing insurance options to the taxi industry for 29 years. Additional benefits for taxi drivers and in particular their passengers will form part of the unique offerings that Commuter & General aims to deliver.
Will developed markets continue to outperform emerging markets? It appears it’s too early to suggest a reversal in this trend as retail and institutional capital flows continue to favour developed markets.
The East Africa Internet Exchange Point (EAIX) is expected to drive down the cost of border connectivity as mobile companies and internet service providers (ISPs) begin to exchange traffic without having to use multiple international hops.