Boston, MA -- (SBWIRE) -- 12/04/2014 -- With the results of our latest analysis of the South African insurance industry over the 2015-2018 forecast period, we confirm the persisting overall growth of gross premiums written in both segments, as well as the underlying drivers. With 82% market share, life insurance is set to remain the main driver of the insurance industry in the foreseeable future. Furthermore, we see an interesting trend within the non-life segment, namely the gradual shift of market shares from the large motor vehicle and property insurance sub-segments to niche products such as general liability and credit-financial guarantee insurance. Overall, we have a positive outlook for both life and non-life insurance.

In 2015, we anticipate total gross premiums written to grow by 2.3% in USD terms (6.3% in ZAR terms), to mark USD52.5bn, which in turn should further increase to USD56.6bn in 2018. In our view, a number of trends underpin these growth prospects, including an increasing demand for cheap generic medicines, accelerating urbanisation, growth of the middle class, as well as ongoing transportation of intermediate goods and auto parts. However, we do also recognise the rather sluggish developments within the auto industry which persist to weigh on the growth potential of, notably, the non-life insurance segment during the coming years.

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Throughout the 2015-2018 forecast period, we see total gross premiums grow at an average annual rate of 2.5% (in USD terms), reaching USD56.6bn by 2018. While we see considerable growth rates experienced by both life and non-life insurance segments in the coming years, the life segment will sustain its growth due to its importance as a conduit for organised savings. In addition, the development of micro-insurance as well as the rapid expansion of financial services in rural areas should provide further support to the life insurance market to sustain continuous growth. Overall, in spite of the challenging...

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