While navigating economic headwinds, South Africa’s insurance industry demonstrated remarkable resilience in 2022, with gross written premiums climbing to a substantial ZAR 614 billion.
Key Takeaways
- South Africa's insurance industry gross written premiums grew by 6.8% in real terms in 2022 to ZAR 614 billion
- The total insurance market size in South Africa was valued at USD 28.5 billion in 2023, with a projected CAGR of 5.2% to 2028
- Insurance penetration rate in South Africa stood at 13.4% of GDP in 2022, up from 12.8% in 2021
- The South African life insurance market generated ZAR 372 billion in gross written premiums in 2022, representing 60% of total industry premiums
- Individual life new business annual premium equivalent (APE) grew by 10% to ZAR 25 billion in 2022
- Group life insurance premiums totalled ZAR 120 billion in 2022
- The SA general insurance market wrote ZAR 264 billion in gross premiums in 2022
- Motor vehicle insurance premiums: ZAR 110 billion, 42% of general insurance in 2022
- Property insurance gross premiums: ZAR 60 billion in 2022
- SA medical schemes open market membership: 9.1 million beneficiaries in 2022
- Medical scheme contributions collected: ZAR 220 billion in 2022
- Healthcare benefits expenditure: ZAR 210 billion, 95% of contributions 2022
- Old Mutual's market share in life insurance was 18% of gross premiums in 2022
- Sanlam Group controlled 22% of SA insurance market in 2022
- Discovery Ltd health and life premiums: ZAR 120 billion in 2022
South Africa's insurance industry grew significantly in 2022 across life, general and health sectors.
General Insurance
- The SA general insurance market wrote ZAR 264 billion in gross premiums in 2022
- Motor vehicle insurance premiums: ZAR 110 billion, 42% of general insurance in 2022
- Property insurance gross premiums: ZAR 60 billion in 2022
- Liability insurance premiums grew 9% to ZAR 25 billion in 2022
- General insurance claims ratio: 68% in 2022
- Theft claims in general insurance: ZAR 15 billion paid in 2022
- Accident and health short-term premiums: ZAR 30 billion in 2022
- Fire claims payouts: ZAR 12 billion in 2022 due to wildfires
- Commercial lines premiums: ZAR 140 billion, 53% of general market 2022
- Personal lines growth: 7.5% to ZAR 124 billion in 2022
- General insurance policies in force: 18 million in 2022
- Fraud losses in general insurance: ZAR 8 billion in 2022
- Catastrophe claims from floods: ZAR 5 billion in KwaZulu-Natal 2022
- Average motor claim size: ZAR 120,000 in 2022
- General reinsurance ceded ratio: 30% of premiums in 2022
- Engineering insurance premiums: ZAR 10 billion in 2022
- Credit & surety bonds issued: ZAR 20 billion coverage in 2022
- General insurance lapse rate: 18% in 2022
- Transport insurance premiums: ZAR 15 billion in 2022
- General insurers solvency margin: 150% average in 2022
- Projected general premium growth: 5.5% to 2028
- Cyber insurance premiums: ZAR 2 billion emerging in 2022
- Agriculture insurance claims: ZAR 3 billion drought-related 2022
- General insurance digital sales: 25% of new business 2022
General Insurance Interpretation
In the high-stakes theatre of South African insurance, the industry in 2022 was a robust ZAR 264 billion machine fuelled as much by motorists' mishaps and rampant fraud as by the grim necessity of shielding against wildfires, floods, and our own regrettable talent for dishonesty.
Health & Medical Aid
- SA medical schemes open market membership: 9.1 million beneficiaries in 2022
- Medical scheme contributions collected: ZAR 220 billion in 2022
- Healthcare benefits expenditure: ZAR 210 billion, 95% of contributions 2022
- Hospital benefits paid: ZAR 120 billion to 1,200 facilities in 2022
- Specialist benefits: ZAR 45 billion for 15 million consultations 2022
- Medicine benefits: ZAR 35 billion chronic and acute in 2022
- Medical scheme non-healthcare expenditure: ZAR 10 billion administration 2022
- PMB utilization rate: 12% of beneficiaries in 2022
- Average monthly contribution per beneficiary: ZAR 2,400 in 2022
- Discovery Health Medical Scheme largest with 2.7 million lives 2022
- Medical aid coverage rate: 16% of SA population in 2022
- Gap cover policies: 1.5 million covering R15 billion risks 2022
- Health insurance (short-term) premiums: ZAR 30 billion in 2022
- Elective procedures claims: ZAR 25 billion in medical schemes 2022
- Maternity benefits: 180,000 claims ZAR 8 billion 2022
- Oncology benefits expenditure: ZAR 12 billion in 2022
- Dental benefits: ZAR 10 billion for 8 million procedures 2022
- Optometry claims: ZAR 4 billion spectacles and exams 2022
- Medical scheme reserves: ZAR 50 billion accumulated 2022
- Principal member age 0-24: 25% of membership 2022
- Chronic medicine PMB claims: ZAR 20 billion 2022
- HIV/AIDS benefits: ZAR 5 billion for 200,000 beneficiaries 2022
- Projected medical scheme growth: 4% annually to 2028
- Telemedicine claims: ZAR 1 billion first time in 2022
Health & Medical Aid Interpretation
Despite covering only 16% of the population, South Africa's medical schemes are a ZAR 220 billion pressure cooker where the relentless demand for hospital stays, specialists, and chronic meds consumes 95% of every contribution, leaving the industry to nervously ponder the 84% outside the room and the 12% who actually use their prescribed minimum benefits.
Key Players & Regulation
- Old Mutual's market share in life insurance was 18% of gross premiums in 2022
- Sanlam Group controlled 22% of SA insurance market in 2022
- Discovery Ltd health and life premiums: ZAR 120 billion in 2022
- Momentum Metropolitan market cap: ZAR 50 billion end-2022
- FSCA regulated 180 long-term insurers in 2022
- SAIA represents 45 short-term insurers members
- ASISA membership covers 85% of SA insurance premiums
- Insurance brokers handled 70% of premiums intermediated 2022
- Top 10 insurers hold 75% market share in 2022
- Liberty Group life new business APE: ZAR 15 billion 2022
- FSCA approved 20 new insurance licenses in 2022
- Solvency Assessment and Management (SAM) compliance: 95% of insurers 2022
- Treating Customers Fairly (TCF) complaints: 15,000 resolved 2022
- FAIS compliance fines: ZAR 100 million levied 2022
- Insurance levy collected ZAR 1.2 billion for Ombud 2022
- Cell captive insurers number: 250 registered 2022
- Reinsurers licensed: 15 foreign and 5 local in 2022
- Alexander Forbes broker revenue: ZAR 10 billion 2022
- PSDA approved 50 new products in 2022
- Black ownership in insurance: 35% average B-BBEE level 2022
- Cyber risk regulation rollout phase 1: 10 insurers compliant 2022
- Insurtech startups funded: ZAR 500 million VC 2022
- FSCA market conduct supervision visits: 300 insurers 2022
Key Players & Regulation Interpretation
While giants like Old Mutual and Sanlam grip a combined 40% of the life market, the real action is a crowded, well-regulated scrum of 180 long-term insurers, where brokers control the flow of 70% of premiums and everyone is nervously keeping one eye on the regulator's ZAR 100 million fine collection jar.
Life Insurance
- The South African life insurance market generated ZAR 372 billion in gross written premiums in 2022, representing 60% of total industry premiums
- Individual life new business annual premium equivalent (APE) grew by 10% to ZAR 25 billion in 2022
- Group life insurance premiums totalled ZAR 120 billion in 2022
- Disability risk premiums in SA life sector reached ZAR 40 billion in 2022
- Critical illness cover sales increased 15% to 500,000 policies in 2022
- Funeral insurance policies in force: 12 million covering 40 million lives in 2022
- Annuity payouts by life insurers totalled ZAR 60 billion in 2022
- Surrender values paid out ZAR 35 billion in life insurance 2022
- Maturity benefits from life policies: ZAR 50 billion in 2022
- Life insurance claims ratio was 92% in 2022 for risk business
- Pure risk life premiums grew 8% to ZAR 80 billion in 2022
- Investment-linked life policies assets: ZAR 1.2 trillion in 2022
- Single premium life sales: ZAR 150 billion in 2022
- Recurring life premiums: ZAR 222 billion in 2022
- Life insurance penetration among affluent South Africans: 75% in 2022
- Average life cover sum assured: ZAR 800,000 per policy in 2022
- Death claims paid: 250,000 claims worth ZAR 28 billion in 2022
- Lapse rate in life insurance averaged 12% in 2022
- Universal life products market share: 20% of life premiums 2022
- Term life new business volume: 1.2 million policies in 2022
- Endowment policies payouts: ZAR 40 billion in 2022
- Life reinsurance ceded: 25% of gross premiums in 2022
- Gender-based life pricing differential abolished impact: 5% premium reduction 2022
- Life insurers' expense ratio: 15% of premiums in 2022
- Projected life premium growth: 6% CAGR to 2027
Life Insurance Interpretation
While South Africans are investing heavily in securing their future—with life premiums hitting ZAR 372 billion and assets under management soaring to ZAR 1.2 trillion—the industry's 92% claims ratio and ZAR 60 billion in annuity payouts reveal a sobering truth: this is less about betting on death and more about funding life, from its final funerals to its ongoing uncertainties.
Market Size & Growth
- South Africa's insurance industry gross written premiums grew by 6.8% in real terms in 2022 to ZAR 614 billion
- The total insurance market size in South Africa was valued at USD 28.5 billion in 2023, with a projected CAGR of 5.2% to 2028
- Insurance penetration rate in South Africa stood at 13.4% of GDP in 2022, up from 12.8% in 2021
- Insurance density in South Africa reached ZAR 10,200 per capita in 2022, compared to a global average of USD 682
- The South African insurance industry's total assets under management grew to ZAR 2.8 trillion by end-2022
- Real growth in direct premiums written for the SA insurance market was 4.1% in 2021
- South Africa's life insurance premiums accounted for 58% of total industry premiums in 2022
- Non-life insurance premiums in SA increased by 7.2% to ZAR 250 billion in 2022
- The insurance industry's contribution to SA GDP was 4.5% in 2022
- Total claims paid by SA insurers amounted to ZAR 400 billion in 2022, representing 65% of premiums collected
- SA insurance market nominal growth was 9.5% in 2022 driven by inflation
- The reinsurance market ceded premiums in SA totalled ZAR 80 billion in 2022
- SA insurance industry's return on equity averaged 12.3% in 2022
- Total number of insurance policies in force in SA exceeded 50 million in 2022
- Digital premiums in SA insurance grew by 25% year-on-year to ZAR 50 billion in 2022
- SA insurance market share in African continent was 25% of total premiums in 2022
- Inflation-adjusted premium growth in SA was 2.5% in 2023 Q1
- SA long-term insurance gross premiums written hit ZAR 350 billion in 2022
- Short-term insurance premiums grew 8.1% to ZAR 264 billion in 2022
- SA insurance solvency ratio averaged 1.8 times required capital in 2022
- Total investment income for SA insurers was ZAR 120 billion in 2022
- SA insurance market projected to reach ZAR 800 billion by 2027
- Premium collection via digital channels reached 30% of total in SA 2023
- SA insurance exports (reinsurance accepted) totalled ZAR 10 billion in 2022
- Industry expenses ratio was 28% of premiums in SA 2022
- SA insurance market CAGR 2018-2022 was 4.8%
- Total policyholders in SA insurance: 25 million individuals in 2022
- Microinsurance premiums contributed ZAR 5 billion in 2022
- SA insurance industry's profit after tax was ZAR 45 billion in 2022
- Gross premiums per employee in SA insurance averaged ZAR 15 million in 2022
Market Size & Growth Interpretation
While South Africa's insurance industry is robustly profitable and growing—stoutly shouldering ZAR 2.8 trillion in assets and dutifully paying out a heartening ZAR 400 billion in claims—it remains, like a cautious parent, both a protective giant at home and a cautiously ambitious player on the global stage, where its per capita generosity far outpaces the world average but still whispers of room to grow among its own.
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