Since the 1994 elections in South Africa a lot of international foreign direct investment (FDI) has been pouring back into the country, and this increase in FDI has had a major impact on the insurance industry in the country.
Even FDI in other sectors of the economy promote the growth of the insurance industry.
As the size of other industries grow, so too does the need and demand fro insurance.
Most of the FDI that has come into the country to fund the insurance industry has come from global companies who are establishing operations in South Africa, but there have also been a lot of highly successful South African insurance companies starting up who have merely received investment from abroad.
In the last decade the country has seen a profound increase in the number of insurance companies, the variety of insurance services and the competition among existing insurance companies.
The increase in competition is highly beneficial to the consumers who make use of insurance services and also to the economy.
The increase in competition among insurance companies insures that the public and businesses who make use of their services are not exploited by a monopoly or collusion among companies.
It ensures not only that prices are fair and equitable, but also that the services rendered by these companies is competitive.
In other words, Insurance companies are providing better services and are also being creative with the additional services and options they provide.
A South African insurance company was one of the first in the world to implement a no claim payout to their customers.
The insurance industry in South Africa is in many ways simpler than those in other countries, since there are not so many naturally occurring risk factors to take into consideration.
South Africa is not really prone to any natural disasters except drought and flooding, which is also a seldom occurrence compared to many countries.
Many issues and risks that are faced in other countries, such as that of hurricanes and earthquakes don't exist in South Africa.
The country does have a very high crime rate though, and the high crime rate affects the premiums which consumers pay in order to obtain insurance coverage.
In fact the high crime rate actually increases the demand for insurance, which is exactly why South Africa has so many insurance companies and they still manage to thrive.
As technology has developed, so too has the insurance industry in South Africa, making insurance far more accessible and affordable to many different entities, whether individuals, businesses or government.
The use of internet, telecommunications and brokers makes it much easier for people to manage their policies, whether it is to get an insurance quote, make adjustments to their policies or track an insurance claim.
These developments have also lead to people being more able and willing to take out insurance policies.
Overall the insurance industry in South Africa is a stable one, if not a very efficient one.
The industry provides a lot of opportunities for new businesses and entrants as well as growth for existing ones.
The most positive aspect of insurance in South Africa is the competitive nature of insurance companies which insures that consumers have a diverse spectrum of insurance options at very reasonable pricing, as well as the fact that the insurance industry is always developing and re-inventing itself to cater for new needs, new markets and do it all more efficiently.
Even FDI in other sectors of the economy promote the growth of the insurance industry.
As the size of other industries grow, so too does the need and demand fro insurance.
Most of the FDI that has come into the country to fund the insurance industry has come from global companies who are establishing operations in South Africa, but there have also been a lot of highly successful South African insurance companies starting up who have merely received investment from abroad.
In the last decade the country has seen a profound increase in the number of insurance companies, the variety of insurance services and the competition among existing insurance companies.
The increase in competition is highly beneficial to the consumers who make use of insurance services and also to the economy.
The increase in competition among insurance companies insures that the public and businesses who make use of their services are not exploited by a monopoly or collusion among companies.
It ensures not only that prices are fair and equitable, but also that the services rendered by these companies is competitive.
In other words, Insurance companies are providing better services and are also being creative with the additional services and options they provide.
A South African insurance company was one of the first in the world to implement a no claim payout to their customers.
The insurance industry in South Africa is in many ways simpler than those in other countries, since there are not so many naturally occurring risk factors to take into consideration.
South Africa is not really prone to any natural disasters except drought and flooding, which is also a seldom occurrence compared to many countries.
Many issues and risks that are faced in other countries, such as that of hurricanes and earthquakes don't exist in South Africa.
The country does have a very high crime rate though, and the high crime rate affects the premiums which consumers pay in order to obtain insurance coverage.
In fact the high crime rate actually increases the demand for insurance, which is exactly why South Africa has so many insurance companies and they still manage to thrive.
As technology has developed, so too has the insurance industry in South Africa, making insurance far more accessible and affordable to many different entities, whether individuals, businesses or government.
The use of internet, telecommunications and brokers makes it much easier for people to manage their policies, whether it is to get an insurance quote, make adjustments to their policies or track an insurance claim.
These developments have also lead to people being more able and willing to take out insurance policies.
Overall the insurance industry in South Africa is a stable one, if not a very efficient one.
The industry provides a lot of opportunities for new businesses and entrants as well as growth for existing ones.
The most positive aspect of insurance in South Africa is the competitive nature of insurance companies which insures that consumers have a diverse spectrum of insurance options at very reasonable pricing, as well as the fact that the insurance industry is always developing and re-inventing itself to cater for new needs, new markets and do it all more efficiently.
