South Africa's Insurance Sector is Well Developed, Thanks in No Small Part to a Regulatory...

South Africa's Insurance Sector is Well Developed, Thanks in No Small Part to a Regulatory Framework That is Conducive to the Development of the Sector

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c88330) has announced the
addition of South Africa Insurance Report Q1 2008 to their offering.

This South Africa Insurance Report provides independent forecasts
and competitive intelligence on South Africa's insurance industry.

This report differs from its predecessors in that it includes
BMI's Insurance Business Environment Rating (IBER). The rating brings
together a number of pieces of relevant quantitative data, together
with BMI's Country Risk Rating (CRR). It is now much easier to
consider the business environment for the insurance sector in any one
country relative to the business environment for other industries in
that country that are surveyed by BMI, and the business environment
for the insurance sector in other countries.

South Africa's IBER is 67.6. Relative to other countries in the
Middle East and Africa, it is an attractive insurance market for
foreign insurers, with an established and well developed market.
Within the region, South Africa stands out for the size of both the
non-life and life segments. While the potential for growth in both
these segments exists, it is not as strong as the potential for other
countries in the region.

Despite political uncertainties, BMI's view is that Government
policies are likely to remain constant over the long term, maintaining
the commendable regulatory framework which boosts South Africa's IBER.
However, the IBER is held back by the volatility of GDP and the
economic outlook, which is in part a function of the sensitivity of
the South African economy to external factors.

Over the forecast period, we anticipate that non-life premiums
will grow by 14% annually in local currency terms, by 10% in US$ terms
and by 11% in EUR terms. Life premiums are expected to increase by 8%
annually in local currency terms, by 5% in US$ terms and by 5% in EUR
terms. The key driver of the growth in the non-life segment in
2007-2012 is the anticipated rise in nominal GDP from around US$268bn
to US$372bn and an expected increase in non-life penetration from
3.04% of GDP to 3.5%.

The key driver of the muted growth anticipated in the life segment
is the envisaged rise in life density from a miniscule US$503 per
capita in 2007 to US$630 per capita in 2012. South Africa's total
population is likely to remain steady. The competitive landscape in
the non-life segment is characterised by fierce competition from large
local players, but is nonetheless very open to participation by
foreign groups - a fact to which South Africa's high score in this
category of its IBER attests. Foreign insurers are a small presence
generally in the life segments of Middle Eastern and African countries
surveyed, and the openness component of South Africa's IBER with
regard to the life segment (5 out of a possible 10) reflects this.

South Africa's insurance sector is well developed, thanks in no
small part to a regulatory framework that is conducive to the
development of the sector. The main weakness of South Africa's
insurance sector is the prospect of the impact of slowing growth and
possible high inflation impacting upon what is, in global terms, a
comparatively low GDP per capita.

Content Outline:

The Sector At A Glance

Table: Overview Of South Africa's Insurance Sector

Key Insights On South Africa's Insurance Sector

SWOT Analysis

South Africa Insurance Industry SWOT

Key Features Of This Report

Latest News

Projections And Forecasts

Table: Premiums Growth, 2005-2012

Projections And Drivers Of Growth

Table: Growth Drivers

Country Update

Macroeconomic Outlook

Table: South Africa - Economic Activity

Political Outlook

Insurance Business Environment Rating

Table: South Africa - Insurance Business Environment Indicators

Table: Middle East And Africa Insurance Business Environment
Rankings

Regional Context

Table: Non-Life Premiums In A Regional Context, 2007

Table: Life Premiums In A Regional Context, 2007

Table: Comparison Of Major Lines As % Non-Life Premiums, 2006 (%)

Analysis Of Competitive Conditions

South Africa - Non-Life Segment

Table: Presence Of Cross-Border Insurers, Non-Life, Middle East
And Africa

South Africa - Life Segment

Table: Presence Of Cross-Border Insurers, Life, Middle East And
Africa

Methodology

Basis Of Projections

Insurance Business Environment Rating

Table: Insurance Business Environment Indicators And Rationale

Table: Weighting Of Indicators

For more information visit
http://www.researchandmarkets.com/reports/c88330

Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

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