Commercial Non-Life Insurance Brokers in South Africa

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Feb 05, 2013, 04:32 ET

NEW YORK, Feb. 5, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Commercial Non-Life Insurance Brokers in South Africa
http://www.reportlinker.com/p01093069/Commercial-Non-Life-Insurance-Brokers-in-South-Africa.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Life_Insurance

Commercial Non-Life Insurance Brokers in South Africa and the BrokerBASE™ that accompanies it investigate the importance of brokers in the distribution of non-life (short-term) insurance for businesses in South Africa. This report first provides unique data for the size, segmentation and growth of the South African commercial non-life insurance market itself. It then quantifies the share of this market that is intermediated by brokers and, based on extensive primary research covering over 400 broking entities in total, it ranks the leading 30 brokers in South Africa according to their revenues from commercial non-life insurance, excluding income from other activities such as personal lines and employee benefits.

This report provides unique data in the following areas:

- the value of commercial non-life insurance markets for 2008 to 2012;

- the share of this market distributed by brokers in 2008 and 2012;

- the revenues generated by commercial non-life insurance business for brokers in 2008 and 2012;

- the concentration of the market for commercial non-life insurance broking;

- forecasts for 2016 for the value of commercial non-life insurance premiums, brokers' share of this market and their revenues from commercial non-life insurance business.

Moreover, the report and the BrokerBASE™ that accompanies it can be used in one or more of the following ways:

- to quantify the size and dynamism of the broker market for commercial non-life insurance in South Africa;

- to utilise a single comprehensive source of information that uses a uniform methodology to size the underlying commercial non-life insurance market and to quantify brokers' share of distribution;

- to assess a range of potential business opportunities: from selecting targets for acquisition to niche product development and ideas for distribution partnerships;

- to understand the competitive landscape in South Africa through its market concentration, the importance of international brokers, and brokers' distribution strategies;

- to identify the leading brokers in South Africa, with coverage of competitors such as ABSA Insurance and Financial Advisers, Aon, FNB Insurance Brokers, Indwe Risk Services and Marsh (including Alexander Forbes Risk Services).

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

What is this report about?

The focus is uniquely on commercial non-life insurance, excluding other types of business...
...and on brokerage, even where intermediaries can act as both agents and brokers.

Rationale

Methodology

Research program

Market data analysis

Definitions

Premiums

Abbreviations

BrokerBASE

Finaccord

2.0 MARKET ANALYSIS

Introduction

Regulatory information

Insurance intermediaries are facing important regulatory changes

Three separate bodies joined in 2008 to form the Financial Intermediaries Association

Commercial non-life insurance market

Premiums registered reasonable growth in nominal and real terms between 2008 and 2012...

...with commercial liability insurance outperforming other segments

Commercial non-life insurance brokers

Overview of brokers' presence in the distribution of commercial non-life insurance

Brokers are the dominant distribution channel for commercial non-life insurance in South Africa

Commercial non-life insurance is the biggest source of income for most of the larger brokers...

... although the revenue mix for bank-owned brokers is more oriented to personal lines

Competitor trends and specialisms

The largest three brokers control more than a third of commercial non-life broking revenues

Key acquisitions in recent years have made Aon the largest commercial broker in South Africa...

...while the takeover of Alexander Forbes Risk Services will push Marsh to become Aon's largest rival

Indwe Risk Services intends to increase its proportion of revenues from commercial clients...

...while the major banks also offer insurance broking to their business customers

PSG Konsult grew its business in 2011 through the acquisition of Pleroma

Willis has a strong focus on very large corporations and the public sector

Brokers' distribution strategies

Only one of the top 30 brokers advertises itself as a regional specialist...

...although brokers promoting product specialisms are more widespread

SATIB Insurance Brokers specialises in working for tourism and leisure companies

Thus far, none of the top 30 brokers has started selling commercial insurance via the internet

A number of South African brokers have joined international networks

Associations offering professional indemnity insurance to their members usually do so through a broker

Future outlook

The commercial non-life insurance broking market will experience further revenue growth up to 2016

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Key market data for commercial non-life insurance brokers in South Africa

1.0 INTRODUCTION

2.0 MARKET ANALYSIS

Segmentation of the commercial non-life insurance market in South Africa, 2012

Growth in the commercial non-life insurance market in South Africa by segment, 2008 to 2012

Size and growth of the commercial non-life insurance market in South Africa by segment, 2008 to 2012 (table)

Brokers' share of the commercial non-life insurance market and revenues earned from it in South Africa, 2008 and 2012

Brokers' share of the commercial non-life insurance market and revenues earned from it in South Africa, 2008 and 2012 (table)

Market concentration for commercial non-life insurance broking in South Africa, 2011

Market shares of commercial non-life insurance broking revenues of the top ten brokers in South Africa, 2011

Brokers' forecast share of the commercial non-life insurance market and revenues earned from it in South Africa, 2016

Brokers' forecast share of the commercial non-life insurance market and revenues earned from it in South Africa, 2016 (table)