As the global insurance landscape continues to evolve through digital transformation, artificial intelligence (AI) is playing a pivotal role in reshaping the short-term Insurance industry, by driving significant advancements in customer engagement, operational efficiency, and claims processing. This trend is also prominent in South Africa, with AI innovations, particularly AI chatbots and generative AI, gaining traction among local insurers, enabling them to better serve consumers while tackling issues like financial exclusion and fraud.
Insight Survey’s latest South African Short-Term Insurance Industry Landscape Report 2024 carefully uncovers the global and South African Short-Term Insurance landscape, based on the latest intelligence and research. It describes the latest global and local market trends, innovation and technology, drivers and challenges, as well as a detailed competitor analysis, to present an objective insight into the South African Short-Term Insurance market environment and its future.
In terms of the Global InsurTech market specifically, significant growth is again expected, with the market expected to reach $26.0bn in 2024* and forecast to grow at a massive compound annual growth rate (CAGR) of 38.8% to reach $496.6bn in 2033*, as illustrated in the graph below. Growth of the global InsurTech market is being driven by several factors, including the growing consumer demand for digital-first, personalised insurance solutions that are able to offer greater convenience and flexibility, as well as the rise in numbers of tech-savvy millennials and generation Z consumers, among others.
According to FinTech Global Research, the African InsurTech market also continues to thrive, with companies raising a combined total of US$30.4 million in 2023. Interestingly, three out of the top four InsurTech companies in Africa in 2023, in terms of InsurTech deals, were South African companies. This included Pineapple, Inclusivity Solutions, and Root, which achieved a combined deal total of $24.9m in 2023.
In line with continued efforts towards digital transformation, the incorporation of artificial intelligence (AI) in the insurance industry is proving to be a significant trend both globally and in South Africa. Examples of this in the global space include Rival Insurance Technology, which announced its new Rival Platform & Marketplace (RPM), an AI-driven web application that is set to transform the way brokers and managing general agents operate. In an industry first, GTAL also recently incorporated AI agents as a core element of its technology platform, in efforts to operate real workflows and shift accuracy by more than 40%, compared to conventional AI.
In South Africa, the integration of AI, particularly AI chatbots and generative AI, is also proving to be a major trend, offering players the ability to enhance customer engagement, streamline operations, and improve service delivery. With this, several new AI innovations have been launched over the past year, alongside announcements of future investment in, and focus on AI integration.
In terms of AI chatbots, in October 2024, OneSure Direct launched its new AI-powered digital assistant, InsureBot, designed to transform the way consumers interact with insurance products by making them simpler, more convenient, and more accessible, as well as allowing for customisability. Blink by MiWay (formerly MiWay Blink), also recently integrated a new AI-powered WhatsApp chatbot to streamline the car insurance quote process for its consumers. This AI chatbot allows consumers to request car insurance quotes directly through WhatsApp, thereby eliminating the need for phone calls or lengthy waits on hold.
Local InsurTech, rather.chat, has also recently integrated ChatGPT into its chatbot technology, allowing users to complete the entire quoting and purchasing process within the chat interface. According to the company, the integration of this AI technology aims to bridge the financial and digital exclusion divide in South Africa.
Furthermore, in terms of generative AI, iWYZE has indicated that the company is busy with projects that incorporate large language models and generative AI into its operations. FNB, which offers several Short-Term Insurance products, has also announced that the company is embarking on an AI journey and continuous innovation drive, which includes using generative AI to combat fraud and improve risk management, amongst other functions.
The South African Short-Term Insurance Industry Landscape Report 2024 (167 pages) provides a dynamic synthesis of industry research, examining the South African and global Short-Term Insurance Industry from a uniquely holistic perspective, with detailed insights into the current market dynamics and stakeholder positioning – market environment and size, industry trends, industry innovation and technology, industry drivers and challenges; as well as key competitor and product analysis.
Some key questions the report will help you to answer:
What are the current market dynamics (overview, market environment, and key regional markets) in the Global Short-Term Insurance industry?What are the latest news and developments in the South African Short-Term Insurance industry, as well as the current market dynamics (overview, market environment, and key industry statistics)?What are the latest Global and South African Short-Term Insurance industry trends (including tech & Insurtech), innovations, drivers, and challenges?How did South African Short-Term Insurance companies perform in 2023/2024?What is the latest company news for each South African Short-Term Insurance player, in terms of products, services, new launches, and marketing initiatives?
For more information, and to view the detailed report brochure, please click here: SA Short-Term Insurance Industry Landscape Report 2024
If you require any further assistance, please email az.oc.yevrusthgisni@ofni, or call our Cape Town office on (021) 045-0202, or Johannesburg office on (010) 140- 5756.
About Insight Survey:
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