South African Short-term Insurance Looks Promising

The South African short term insurance industry is still largely untapped and is expected to grow at a CAGR of around 11% between 2009 and 2013, "says South African Insurance Industry Forecast to 2013", a new research report from RNCOS. At present only close to 2.5 million South Africans have short-term insurance, which is less than one quarter of its population.

With the alarming rise in road deaths and high medical costs, the accident and sickness insurance is becoming a common need for everyone living in South Africa. People are eagerly buying accident and sickness insurance to avoid the economic losses caused by accidents or illness. According to the latest available estimates, the cost of traffic down to individuals, commerce, communities and countries around ZAR 38 billion a year. Besides, every day on an average of 36 lives lost. Of these, 15 pedestrians and three were killed in taxi-related incidents. Thus there are tremendous opportunities for growth in this segment of the insurance industry. Accident and health insurance net premium is projected to grow at a CAGR of 25-30% from 2009 to 2013.

Moreover, since all businesses are exposed to the general public in one way or another, responsible coverage is crucial for any company operating in the country. With increasing business risks and mass awareness programs, the net premium liability is expected to grow at a CAGR of around 36% over the forecast period (2009-2013).

"South African Insurance Industry Forecast to 2013" is a comprehensive research report, which includes quality research and thorough analysis of the insurance market in South Africa. The studies of new market trends, recent developments and their impact on the market. The report will help clients to analyze the advanced options, potential customer base, key players, future prospects and any other factors that determine the success of a new player in the South African insurance industry.