The Insurance Gap Study finds SA’s life and disability shortfall has swelled to R50.4 trillion, with the average earner holding only 39% of the cover their dependants would need.
ASISA’s research shows formally employed South Africans face a major liquidity risk: R4 trillion in earnings versus only R1.1 trillion in critical illness cover.
ASISA says further consultation is needed to avoid negative consequences for investors and the collective investment schemes market.
Recurring-premium risk policies grew modestly, while the number of endowment policies and retirement annuities declined, ASISA statistics show.
The misalignment between the FSC benchmarks and stricter government employment equity targets is set to increase the transformation pressure on life offices and asset managers.
Strong market returns and rising balances have prompted many retirees to reduce withdrawals – a trend ASISA encourages annuitants to maintain.
Policies subject to underwriting had the highest payout rates in 2024, reflecting lower fraud and non-disclosure and the value of comprehensive risk assessment.
Sales of recurring-premium savings policies continued to improve, while lapses of risk policies declined.
A decade after the introduction of hedge fund regulations, retail investors are driving strong growth, with RHFs attracting R11.84 billion in net inflows in 2024.
ASISA warns that reclassifying collective investment scheme portfolios as profit-making schemes will undermine years of established investment policy.
The new SA Multi Asset SA High Equity category is expected to gain traction over time, despite slower uptake in the early stages.
Challenges remain with the representation of black people in executive director roles, ASISA’s latest transformation report shows.
Assets under management grew to a R3.8 trillion, up 13.7% year-on-year, supported by strong equity market performance.
The marginal decrease in the average drawdown rate is noteworthy because it occurred in an environment of rising living costs, says ASISA.
The proposal is for hedge funds to be subject to a different tax regime, potentially removing the ‘revenue versus capital distinction’ that causes tax uncertainty.
The industry lost at least R175.9 million last year but prevented losses of R1.5 billion through enhanced detection efforts, says ASISA.
The higher offshore investment limit necessitated a review of the standard.
