The South African insurance market stands as one of the most advanced in the world, with one of the highest premium-to-GDP ratios and a wide cross section of well-regulated and innovative insurers. Although the market is set to become more sophisticated with the introduction of new legislation, much of the country remains unbanked and either uninsured or underinsured. Financial inclusion is still limited, with basic policies like auto or property liability insurance only optional – a rarity in the developing world, both in Africa and beyond. This presents significant opportunities for local and regional players, as they look to develop more inclusive products that meet the needs of low-income customers. In addition to providing much-needed coverage, the segment is expected to unlock substantial growth potential for insurers in the years ahead.
This chapter contains an interview with Thabo Dloti, CEO, Liberty Group.