Soft market conditions in South African insurance threaten long-term sustainability

South African insurers face long-term sustainability risks as the local market undergoes an aggressive softening. This condition follows a lower-than-trend claims experience in 2024 and 2025. In this environment, insurers compete aggressively for business, which results in lower premiums, broader cover and looser underwriting terms. This aggressive competition is further driven by the return of European brands to the country through the Lloyd’s market or fronting agreements, which undercuts the South African market in specialist areas and corporate property.