South Africa Insurance Pricing Trends Q1 2022

South Africa

Insurance pricing in South Africa is heavily dependent on risk specifics. In some instances, international markets are competitive with local ones, in other cases their pricing is higher.

Casualty:

Year-over-year pricing in casualty markets generally increased between 10% and 45% in the fourth quarter of 2021.

Product recall and spread of fire coverages experienced increased rates and deductibles, and a reduction in available limits.
Increases varied depending on the nature of risk, claims experience, and overall risk management.
Contaminated product insurance experienced significant capacity challenges, especially on food-related risks.
Capacity declined and pricing increased in the property, terrorism, and sabotage (PTS) market following recent riots, with increases exceeding 100% in most cases.

Property:

Property insurance pricing increased by 18% in the quarter, compared to a 23% increase the prior quarter.

Increases varied depending on the nature of risk, claims experience, and overall risk management.
International markets continued to be more competitive than local markets on certain risks.
For large and complex placements we continue to see differential terms, with associated higher costs when completing them.