As our Leadership interview journey drew to a close, my recent conversation with Schalk Malan, Head of Insurance South Africa for Standard Bank’s Insurance and Asset Management business, offered a fitting reflection on where our industry stands, and what kind of leadership it now requires.

Schalk is only a few months into his new role, having moved from a deeply entrepreneurial environment into one of the country’s largest and most established financial services groups. That transition alone makes his perspective valuable. But what struck me most was not simply his optimism about 2026. It was the deliberate clarity with which he speaks about focus, courage and execution in a complex environment.

A tale of two cities - His description of the past year as “a tale of two cities” resonates. On the one hand, we have seen buoyancy return. Market performance has supported life insurers’ balance sheets and client portfolios. Activity in the intermediated, fully underwritten life market has picked up. Bank assurance and embedded offerings have shown renewed momentum, underpinned by improving economic sentiment.

On the other hand, the inward focus remains real. IFRS 17 implementation continues to absorb energy. Regulatory and accounting change has not fully moved into the rear-view mirror. Technology decisions, particularly around AI, have created both excitement and anxiety. Across the industry there is enthusiasm, but also inertia. Everyone is talking about AI. Fewer are clear on what it means in practical terms.

Yet despite those headwinds, Schalk is unequivocal: The foundation has been laid for what could be an exceptional year ahead. That optimism is not naïve. It is grounded in opportunity.

The R20,000–R40,000 opportunity - If there is one opportunity he highlighted with particular conviction, it is the rapidly expanding segment of households earning between R20,000 and R40,000 per month. This is South Africa’s emerging professional class: young families, first-time homeowners, growing balance sheets, rising aspirations. It is also a segment that is tech-savvy, informed and increasingly demanding of value.

For our industry, the question is simple but profound: If advice is the cornerstone of how we deliver appropriate, cost-effective, scalable solutions to this group, how do we ensure that we do it without compromising quality or sustainability? This is not merely a commercial opportunity. It is a societal one. If we get this segment right, we build long-term resilience into the country’s financial fabric. We shift behaviour from consumption to structured, disciplined planning. We deepen savings pools and strengthen risk protection at scale. While this segment is key, our mission is to share our expertise and innovation in client solutions with all segments of the market.

The industry has spoken about “market preparation” for decades. But the growth of this segment suggests that the time for theoretical discussion has passed. Execution must follow.

Technology as an amplifier, not a threat - The second major theme in our discussion was technology. As always, the conversation quickly turns to AI and job displacement. It is easy to fall into binary thinking: either AI will replace us, or it will revolutionise us.

Schalk’s view is more balanced. In his experience, AI is proving primarily augmentative. It enhances productivity. It improves accuracy. It frees people to focus on higher-value interactions. It is a tool to serve clients better, not to eliminate the human element. That distinction matters. Insurance and financial planning are trust businesses. Augmentation makes sense. Replacement does not.

However, augmentation requires adaptation. His advice to younger professionals, and indeed to seasoned ones, is clear: Cultivate the ability to change. Train yourself to be comfortable with change. Discipline yourself to learn something new every day. In a country where productivity growth has long lagged, the potential impact of AI as a productivity multiplier is significant. If embraced thoughtfully, it could become one of South Africa’s most powerful economic accelerators.

Corporate scale, entrepreneurial spirit - Perhaps the most interesting part of our conversation centred on leadership transition. How does an entrepreneur retain entrepreneurial edge inside a large, mature corporate structure?