Africa Insurance Outlook 2022
Navigating the insurance landscape
This year’s Africa Insurance Outlook 2022 is set against the backdrop of an industry that has proven resilient in the 2nd year of the Covid-19 pandemic. The publication reflects on the past year and shares some of our perspectives on trends that will shape the African insurance industry in the coming year. We have also witnessed digital distribution picking up with insurers having to understand their clients now more than ever before.
This publication focuses on themes such as business, customer and digital transformation, governance and risk as well as financial reporting priorities in the industry. The full list of articles includes pieces that offer unique insights into:
- 2021 financial results of listed insurers - South Africa (Including 2021 short-term insurance industry results)
- Risk-based capital developments across Africa
- New generation risk premium reviews.Have you considered all the factors?
- The FATF Report: what you need to know
- The customer gold rush
- Adopting digital technologies to unlock the Nigerian insurance market
- Are you ready for an IFRS 17 external audit?
- Impact of IFRS 17 on the tax base of long-term insurers in South Africa
Please download the full publication, or peruse individual articles below.
For a shorter read of the individual articles found in the Africa Insurance Outlook 2022 publication, please browse the various articles under each theme below.
2021 financial results of listed insurers - SA (Including 2021 short-term insurance industry results)
With the 31 December reporting season for South Africa’s large, listed insurance groups complete, we had an opportunity to take stock of the financial performance of the industry.
Download the article here.
Risk-based capital developments across Africa
Insurers across Africa are placing significant attention on the implementation of IFRS 17 and IFRS 9. At the same time, regulators in a number of African countries are upgrading their risk and capital regimes and introducing new or enhancing existing risk-based capital (RBC) regimes.
Download the article here.
New generation risk premium reviews. Have you considered all the factors?
Premium reviews are a product development mechanism used by insurers to reduce the initial cost of insurance. While they are effective at enabling greater access to the insurance market, premium reviews introduce their fair share of complexities and uncertainties. While it is important to have a PPPR to assist with planning and forethought, it is important to ensure that it is complete. This begs the question: Have you considered all the factors?
Download the article here.
The FATF Report: what you need to know
The Financial Action Task Force (FATF) recently released its 2021 Mutual Evaluation Report for South Africa. The FATF’s findings show clearly that South Africa needs to significantly improve its practices and processes with regard to countering money laundering and terrorist financing. While the FATF’s report contains a wide range of findings and recommendations, we will look at four key focus areas highlighted by the FATF that require immediate improvement.
Download the article here for more.
The customer gold rush
Customer experience and satisfaction are critical components for insurance. In Africa, many insurers are still in the early adoption stage of digital transformation and have only recently started to focus on customer centricity. However, customers already demand greater digitisation and process automation, flexibility in product offerings and terms, and individualisation of risk profiling and pricing. This article highlights the need for insurers to adapt their traditional business models to more customer-centric ones.
Download the article here for more.
Adopting digital technologies to unlock the Nigerian insurance marke
In Nigeria, Africa’s most populous economy, insurance penetration remains considerably below 1%. This is one of the lowest penetration rates in West Africa and below the African and global averages of 2.6% and 7.4% respectively. What are the key digital technologies reshaping the insurance sector in Nigeria?
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Are you ready for an IFRS 17 external audit?
The adoption date of the new financial reporting standard for insurance contracts (IFRS 17) is drawing near. As insurers start entering the home stretch, we expect to see engagement with external audit ramp up significantly.
Download the article here for more.
Impact of IFRS 17 on the tax base of long-term insurers in South Africa
As insurers are well aware, the current financial reporting standard for insurance contracts (i.e., IFRS 4) will be replaced by a new reporting standard (i.e., IFRS 17) effective for reporting periods starting on or after 1 January 2023. The implementation of IFRS 17 will likely have a material impact on, among others, the carrying value and nature of policyholder liabilities in the financial statements and the profit profiles of insurers for reporting purposes.
Download the article here for more.
