Strategic Market Intelligence: Reinsurance in South Africa - Key Trends and Opportunities to 2022

Strategic Market Intelligence: Reinsurance in South Africa - Key Trends and Opportunities to 2022


In September 2016, the Reinsurance Regulatory Review of the existing framework of approved and non-approved reinsurers was revised. The amendments proposed include authorizing micro-insurers to conduct micro-reinsurance business. Furthermore, reinsurers from a country with equivalent jurisdiction can carry out reinsurance business in South Africa. As of March 2019, the regulator is yet to announce the timeline for the introduction of new regulations.

The premium accepted grew from ZAR16.5 billion (US$1.7 billion) in 2013 to ZAR26.6 billion (US$2.0 billion) in 2017, at a review-period CAGR of 12.7%. It is expected to value ZAR35.7 billion (US$2.4 billion) in 2022, growing at a forecast-period CAGR of 6.1%.

The segment is dominated by the presence of foreign reinsurers such as Munch Re and Swiss Re. In 2017, the top four reinsurers accounted for 77.5% of the total Net Written Premium (NWP). Operating conditions for domestic reinsurers remained challenged by their high exposure to volatile portfolios and an increase in pressure from international reinsurers. According to JLT Re, in the African region, regional retrocession programs recorded an increase of up to 5.0% in loss-free insurance portfolios, while for loss-affected portfolios the increase was up to 35.0%.

The South African insurance industry recorded growth at a review-period CAGR of 4.9%, backed by the presence of compulsory classes, the occurrence of natural hazards and a rise in demand for life-related products. The establishment of a free trade zone, introduction of new regulations and growth in the country’s economy is expected to drive the insurance industry over the forecast period.

There is no restriction in South African insurance legislation to prohibit fronting arrangements. The fronting reinsurer or insurer is liable to pay claims even if the foreign reinsurer becomes insolvent and fails to reimburse the claims. There are no restrictions on the retention and cession requirements in South Africa. However, insurance companies must adhere to the solvency requirements of the Short-Term Insurance Act (STIA) and Long-Term Insurance Act (LTIA) to cede their risk to a reinsurer or reinsurers; furthermore, the insurance legislation does not stipulate provisions on retrocession in South Africa.

The report Strategic Market Intelligence: Reinsurance in South Africa - Key Trends and Opportunities to 2022, provides a detailed outlook by product category for the South African reinsurance segment. It provides values for key performance indicators such as premium ceded and cession rates, during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the South African economy and demographics, and provides detailed information on the competitive landscape in the country.

The report brings together research, modeling and analysis expertise, giving reinsurers access to information on segment dynamics and competitive advantages, and profiles of reinsurers operating in the country. The report also includes details of insurance regulations, and recent changes in the regulatory structure.

Companies mentioned: Munich Reinsurance Company of Africa Ltd., General Reinsurance Company Ltd., Swiss Re Africa Ltd., Hannover Life Reinsurance Africa Ltd., African Reinsurance Corporation (Sa) Ltd.


  • This report provides a comprehensive analysis of the reinsurance segment in South Africa.
  • It provides historical values for the South African reinsurance segment for the report’s 2013-2017 review period, and projected figures for the 2017-2022 forecast period.
  • It offers a detailed analysis of the key categories in the South African reinsurance segment, and market forecasts to 2022.
  • It provides an overview of the various distribution channels for reinsurance products in South Africa.
  • It profiles the top reinsurance companies in South Africa, and outlines the key regulations affecting them.
Reasons to buy
  • Make strategic business decisions using in-depth historic and forecast market data related to South Africa's reinsurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends and growth opportunities in the South African reinsurance segment.
  • Assess the competitive dynamics in the reinsurance segment.
  • Identify growth opportunities and market dynamics in key product categories.
  • Gain insights into key regulations governing the South African insurance industry, and their impact on companies and the industry's future.

Executive Summary
Economy Overview
Regulatory Risk
Key Facts
Licensing Requirements
Reinsurance Overview
Premium Ceded Trend
Cession Rates
Distribution Overview
Competitive Landscape
Composition of Top Reinsurers
Key M&A Transactions
Competitor Profiles

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