Boston, MA -- (SBWIRE) -- 10/22/2014 -- The headwinds in the South African economy have weighed on both life and non-life insurers in 2014. However, we see the life sector as being able to ride out the storm better due to the more diversified footprint of the larger life insurance players across the whole of Africa. Over the 2015-2018 per iod, we expect total gross premiums to average 16.0% annual growth and we see the life segment outperforming the non-life segment during this period.

The South African market is facing a myriad of headwinds in the short term, which has hurt margins of insurers and slowed the industry's gross premium growth. Some of these short-term challenges include a sluggish economy, industrial action, an erosion of consumers' purchasing power due to rising inflation, and a weakening local currency. While we forecast total gross premiums to grow by 2.6% in 2014 in ZAR terms, the market will actually contract 7.5% in USD terms. This is due to the continuation of the depreciatory trajectory of the South African rand (against the US dollar), which first began in 2011.

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Over the 2015-2018 period, we see gross premiums growing at an average annual rate of 16.0% (in USD terms), hitting USD90.3mn by 2018. While we see strong growth in both life and non-life segments, the life segment will remain an outperformer in the coming years. The life insurance market accounted for 82% of total gross premiums in 2014 and we expect the segment to maintain its market share over the coming years. The development of micro-insurance as well as the rapid expansion of financial services in rural areas will provide support to the life insurance market.

We see life insurance remaining the dominant segment in the country's insurance sector (with its market share consistently remaining north of 80%) over our 2014-2018 forecast period. While we see strong growth in both the life and non-life segments, growth in the life segment will outperform due to the importance of the sector as a conduit for...

The South Africa Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's South Africa Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the South African insurance industry.

Key Benefits

- Benchmark BMI's independent insurance industry forecasts for South Africa to test other views - a key input for successful budgeting and strategic business planning in South Africa's insurance market.
- Target business opportunities and risks in South Africa through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

Regional Outlook

Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.

Business Environment Rankings

BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.

BMI Industry Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

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