South Africans Continue Buying Long-term Insurance Products
With continued rise in demand for life, disability and investment linked annuities the long-term insurance is expected to grow at a CAGR of over 10% during 2009-2013.
Online, August 27, 2009 (Newswire.com) - The long-term insurance sector in South Africa is expected to remain generally healthy between 2009 and 2013 on account of continuously surging demand for life, disability and investment-linked annuities. The sector is forecasted to grow at CAGR of over 10% over the forecast period despite the continued pressure of economic crisis on the country, says "South African Insurance Industry Forecast to 2013", a recent report from RNCOS, a leading market research firm.
After much analysis, we found that in 2008, the long-term insurance sector in South Africa showed a remarkable resilience to one of the worst economic crisis ever faced by the world. It recorded a solid growth rate of about 11.5% in 2008, with total premium and investment income increasing to ZAR 252 Billion from ZAR 226 Billion in 2007. Rise in demand from individual policy holders accounted for the majority of growth.
Most importantly, the policyholders not only maintained their premium for life and disability insurance and savings policies last year, but they also continued to increase them. The long-term insurance industry managed to attract new individual recurring as well as single premiums of ZAR 65 Billion during 2008, an increase of 14% over 2007. New recurring premiums for 2008 amounted to ZAR 12.9 Billion, 12% up from 2007, while single premiums grew 15% to reach at ZAR 52.6 Billion.
Our analysts also pointed out the fact that there is a need to have more integrated offerings between insurers' life and non-life businesses. This will increase the working efficiency and profitability of insurers in South Africa.
"South African Insurance Industry Forecast to 2013" is a comprehensive research report that comprises quality research and in-depth analysis on the insurance market in South Africa. It studies the emerging market trends, recent developments and their impact on the market. The report will help clients to analyze the leading-edge opportunities, prospective customer base, key players, expected future outlook and all the other factors which are critical to the success of a new entrant in the insurance industry of South Africa.
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RNCOS, incorporated in the year 2002, is an industry research firm. We are a team of industry experts who analyze data collected from credible sources. We provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.