Executive Summary
- Technological advancements and partnerships with financial institutions and telecommunication companies provide an opportunity for non-life insurers to expand their reach and serve new customer segments.
- Developing more extensive digital distribution channels is a key focus of many insurers in South Africa. Factors such as demographic trends, evolving consumer preferences, and regulatory advances support this focus.
- Insurtechs like Vaai.co, Naked, and Pineapple have disrupted the non-life insurance segment with generative AI, allowing customers to access, purchase, and manage policies online. This has driven product innovation in the market, which we expect to drive increased insurance penetration.
- There is considerable growth in the insurtech sector. Given their lean operation model and strong growth prospects, Insurtech's digital-first business model makes them an attractive investment opportunity for private equity investors.
South Africa’s non-life insurance industry is projected to grow at a CAGR of 5.4% between 2024 and 2028, with gross premiums rising from R196.56
