Insurance and Technology in the South African Insurer

by Catherine Stagg-Macey, April 21, 2009
Industry Trends
EMEA

Abstract

While not immune to the global recession, many large South African insurers continue to pursue large programs of change and are investing in technology intrinsic to this change.

In a new report, Insurance and Technology in the South African Insurer, Celent provides some of the latest available market sizing information, along with views on the market challenges and technology priorities of South African insurers.

Total premiums in South Africa for 2008 were US$42 billion, just over 1% of global premiums. Long-term insurance made up over 80% of the total premiums, with short-term insurance contributing only US$4.7 billion to the total.

“The South African insurance industry is undergoing a serious makeover,” says Catherine Stagg-Macey, senior analyst with Celent’s Insurance Group and author of the report. “There are several insurers investing heavily in changing their business models to reflect the new South Africa. In order to do this, most insurers in South Africa are having to overcome legacy technology issues to support changes in their business priorities.”

This report examines specific market challenges in the country, addressing legacy issues facing South African CIOs, and discusses some of the strategies for solving this problem.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

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3
The Financial Services Sector in South Africa 5
The Competitive Environment 8
Market Challenges 19
Challanges of Microinsurance 12
Embracing Legacy IT 14
Build Vs. Buy 16

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