For the Insurance Companies in South Africa, the future looks very rose in my estimation, particularly when I see the furious competition among both short term and Life Insurance companies.
Are they desperately seeking market share? It would appear so.
Everywhere you look these days there are car insurance companies promising better premiums and even going as far as saying that they will give you cash of up to R400 if they cannot save you money, like Outsurance have done recently. That is quite a statement they made which means to me that the cost of getting someone to call them is effectively over R400, they are able to provide Insurance cheaper and still make a healthy profit!
Is there a large untapped market of new Insurance customers that they are competing for? There certainly is.
As the middle class expands in South Africa, the insurance companies understand that they will be buying cars, investing for their futures and seeking to ensure that their children maintain a certain lifestyle should they die.
The black middle class represent a significant number of people that prior to 1994 were not exposed to insurance products in the same way that White South Africans were. Most white middle class South Africans prior to 1994 had Life Insurance, Car Insurance, All risk Insurance of some sort, or all three of these types of Insurance.
In essence, the Insurance market is expanding rapidly and so are the product offerings. There are now Life Insurance policies targeted at HIV positive people specifically. This alone represents many millions of potential new customers and as the research into life expectancy of HIV positive people improves, so it is becoming more and more evident that HIV can be looked at as a chronic disease that can be managed like any other chronic illness (Diabetes or high blood pressure for example)
Take a few minutes to get an idea of just how competitive The Insurance business is, complete the form to get Insurance quotes and compare them against what you are currently paying, you are likely to be very pleasantly surprised!
It is my personal opinion that the Insurance companies have a very bright future, both in the long term or Life Industry as well as the short term Industry.