FINANCIAL SERVICES BOARD INSURANCE DEPARTMENT

Transcription

1 FINANCIAL SERVICES BOARD INSURANCE DEPARTMENT SPECIAL REPORT ON THE RESULTS OF THE LONG-TERM INSURANCE INDUSTRY FOR THE PERIOD ENDED JUNE 15 August

2 1 SPECIAL REPORT ON THE RESULTS OF THE LONG-TERM INSURANCE INDUSTRY Industry results - Typical insurers (typical insurers, for the purpose of this report, are those insurers who offer most of the six classes of business as defined in the act, in the primary market). The table below sets out combined unaudited statistics (net after reinsurance) for typical insurers for the years to and for the six months of as well as comparative figures for the first six months of Net premium increase (year to year) % (6) Management Expenses (as % of net Investment yield %* (1) Number of policies increase (yr to yr) % Individual lapse %** Individual Individual expiry %** cover ratio (median) Car cover ratios - Typical insurers Covered 0-1 times Covered 1-2 times Covered 2-5 times Covered 5-10 times Covered 10+ times Total

3 2 Industry results - Niche insurers (niche insurers, for the purpose of this report, are those insurers who conduct business in a specific target market). The table below sets out combined unaudited statistics (net after reinsurance) for niche insurers for the years to and for the first six months of as well as comparative figures for the first six months of Net premium increase (year to year) % 1 (79) (15) (15) Management Expenses (as % of net Investment yield %* Number of policies increase (yr to yr) % (2) 1-7 Individual lapse %** Individual (4) Individual expiry %** cover ratio (median) Car cover ratios - Niche insurers Covered 0-1 times Covered 1-2 times Covered 2-5 times Covered 5-10 times Covered 10+ times Total

4 3 Industry results - Link investment insurers (link investment insurers, for the purpose of this report, are those insurers who underwrite policies whereby the value of the policy is directly linked to the value of the assets invested in, and no guarantees are offered). The table below sets out combined unaudited statistics (net after reinsurance) for link investment insurers for the years to and for the first six months of as well as comparative figures for the first six months of Net premium increase (year to year) % 10 (23) (11) Management Expenses (as % of net Investment yield %* Number of policies increase (yr to yr) % (7) Individual lapse %** Individual Individual expiry %** cover ratio (median) Car cover ratios - Link investment insurers Covered 0-1 times Covered 1-2 times Covered 2-5 times Covered 5-10 times Covered 10+ times Total

5 4 Industry results - Cell captive insurers (cell captive insurers, for the purpose of this report, are those insurers who conduct business on a cell captive basis only). The table below sets out combined unaudited statistics (net after reinsurance) for cell captive insurers for the years to and for the first six months of as well as comparative figures for the first six months of Net premium increase (year to year) % 65 (37) 23 (6) Management Expenses (as % of net Investment yield %* Number of policies increase (yr to yr) % cover ratio (median) Car cover ratios - Cell captive insurers Covered 0-1 times Covered 1-2 times Covered 2-5 times Covered 5-10 times Covered 10+ times Total

6 5 Industry results Reinsurers (reinsurers, for the purpose of this report, are those insurers who conduct only professional reinsurance and are not involved in marketing to the public). The table below sets out combined unaudited statistics (net after reinsurance) for reinsurers for the years to and for the first six months of as well as comparative figures for the first six months of Net premium increase (year to year) % (9) Management Expenses (as % of net Investment yield %* Number of policies increase (yr to yr) % cover ratio (median) Car cover ratios - Reinsurers Covered 0-1 times Covered 1-2 times Covered 2-5 times Covered 5-10 times Covered 10+ times Total

7 6 Industry results - Assistance insurers (assistance insurers, for the purpose of this report, are those insurers who offer life policies where the sum assured does not exceed R10 000). The table below sets out combined unaudited statistics (net after reinsurance) for assistance insurers for the years to and for the first six months of as well as comparative figures for the first six months of Net premium increase (year to year) % (8) (15) Management Expenses (as % of net Investment yield %* (2) Number of policies increase (yr to yr) % (3) (4) 48 Individual lapse %** Individual Individual expiry %** cover ratio (median) Car cover ratios - Assistance insurers Covered 0-1 times Covered 1-2 times Covered 2-5 times Covered 5-10 times Covered 10+ times Total