Top 10 biggest insurers in South Africa

Research conducted by KPMG through its South African Insurance Industry Survey 2016, shows which firms dominate the short-term insurance industry.

The financial service firm said that business activity in the insurance industry over the last
twelve to fifteen months  in South Africa has been that of ‘disruptive innovation’.

Traditional insurers want to enjoy the growth rates that “more innovative” and niche players have attained and who have significantly contributed to the increase in gross written  premium for the year of 11%, said Antoinette Malherbe, director and editor, financial services at KPMG.

“No longer are traditional expansion plans adequate. Thinking outside the box is key to make fundamental strides in an industry where market share is hard to come by,” Malherbe said.

The report said that while the insurance sector showed overall positive financial results for 2015, the outlook for 2016 is less certain.

KPMG said that brokers who have over the years increased fees without too much questioning from their clients are starting to feel the pressure, while cash-strapped consumers are continuing to compare their bottom-line spend.

The short-term insurance industry reported gross written premiums of R89.1 billion in 2015, up 11.4% compared to R80 billion written in 2014.

The market is still being dominated by the four largest insurers that underwrite
52.7% (2014: 52.1%) of the market’s gross written premiums (GWP).

Hollard replaced M&F as the second largest short-term insurer in the South African market in 2015.

Hollard and Guardrisk are the only two companies in the top 10 who have managed to increase market share.

The charts below reflect the GWP of the 10 largest short-term insurance companies.

Top 10 biggest insurers in the 2015

# Company share
1 Santam 24%
2 Hollard 11%
3 Mutual & Federal 10%
4 Guardrisk 8%
5 Outsurance 7%
6 Telesure 6%
7 Absa 4%
8  Zurich 4%
9 AIG 3%
10 Standard Insurance 2%
Other 21%

Top 10 biggest insurers in the 2014

# Company share
1 Santam 25%
2 Mutual & Federal 11%
3 Hollard 9%
4 Outsurance 8%
5 Telesure 7%
6 Guardrisk 7%
7 Absa 6%
8 Zurich 4%
9 AIG 3%
10 Standard Insurance 2%
Other 18%

The use of technology

The report showed examples of how progressive insurance companies are leading the way through technology.

MiWay, KPMG noted, is creating positive customer experiences through the effective use of their Miway App. Customers using the App to log a motor vehicle accident claim, received a R1,000 reduction in their applicable excess.

The MiWay App also allows users to request roadside assistance to their exact location, instantly notify up to three contacts that they need assistance, request a call back from MiWay Client Services and locate the nearest inspection centres.

New products and players

The report also pointed to new products and industry players in SA including the likes of Phishield and MyWater Insured.

With South Africa posting the highest average rate for phishing activity globally
in 2014, with an overall average phishing rate in organisations of 1 in 568 users
for the year, it only made sense to tailor an insurance product to cover these
losses, KPMG said.

Phishield brings a unique cyber fraud insurance to the South African market. This insurance includes, but is not limited to phishing fraud.

Unexpected water loss (for instance due to an unknown pipe leak) has a negative impact on both the consumer and the council that supplies it and through MyWater Insured, these losses can now be insured.

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Top 10 biggest insurers in South Africa