5 Facts About Life Insurance in South Africa

5 Facts About Life Insurance in South Africa

The importance of having life insurance to provide for families has reached almost all parts of the world. In fact, it has even reached South Africa and has been given equal value as it is from other countries. Whether it is for education, health care, or food, life insurance has been proven to be an instrument of salvation for families who experience the hardships of financial strains.

South Africans that decided to purchase a good insurance plan from a financially stable insurance company are taking steps which would help in the future of their families. When choosing a good insurance company, one should always remember to choose a policy which caters to his particular needs. He should take time to study the premiums, policies, and even the application procedures.

For a start, here are 5 facts about life insurance in South Africa.

1. South Africa is considered the largest market for insurance in Africa

It is not difficult to find insurance companies as the country is full of insurance companies here and there. In fact, the region has been dominated by insurance companies with 80% of the direct total premium on both the non-life and life segments.

2. The life insurance segment in South Africa has been unaffected by the global economic crisis

Surprisingly, the past economic crises had little or no effect at all on the country'slife insurance segment. This is because of a mixture of circumstantial, fundamental, and historical factors. In addition, the different financial institutions were not affected by the global economic crisis because of their limited exposure to foreign financial institutions.

3. Expansion paved the way for growth in the sales of the insurance industry

The growth sales of the insurance industry were due to the rapid rate of expansion of the distribution channels across the rural areas in the region.

4. By 2015, new regulatory regimes for the South African insurance industry will be implemented

By the year 2015, a new regulatory regime called the "Solvency Assessment and Management (SAM)" is expected to be implemented for the South African insurance industry. Although still a framework, it is still currently being developed to be able to have a risk-based regime which would effectively supervise the regulation of both short-term and long-term insurers in the region.

5. Four large competitors and a number of smaller competitors dominate the South African life insurance industry

The South African life insurance industry is said to be dominated by four large competitors leading insurance companies are Life Insurance Today, Discover Life, Liberty Life, Momentum, Old Mutual, PPS, and Altrisk.

If you are interested in purchasing a life insurance plan, then the first place you can rely on to be able to find good insurance companies is on the Internet. You will also be able to find reviews and quotes from these insurance companies and you will be able to assess whether the insurance company will be able to cater to your particular needs.

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