South African Financials: Banks are winning in life—driving a 15% surge in SA life-insurance industry policies and capturing 26% of the profit pool

Research evidence excerpt

South African Financials: Banks are winning in life—driving a 15% surge in SA life-insurance industry policies and capturing 26% of the profit pool

J P M O R G A N CEEMEA Equity Research

10 July 2026

South African Financials

Banks are winning in life—driving a 15% surge in SA

life-insurance industry policies and capturing 26% of the

profit pool

Our research indicates that South Africa’s total life insurance policy count has CEEMEA Financials

ACstepped up sharply over the past 12 months, averaging 15% YoY growth across the Baron Nkomo

last four quarters (accelerating to +23% YoY in Q1) and reaching 60 million (27-11) 507-0385

policies (see Figure 1). This inflection matters because policy growth was largely baron.nkomo@jpmorgan.com

subdued from 2014 to 2024. Funeral insurance remains an important driver of J.P. Morgan Equities South Africa (Pty) Ltd.

volumes, but the recent surge in both policy count and premiums also coincides Pooja Ruia

with Capitec’s expansion into life insurance, following the launch of its (91-22) 6157-3688

pooja.ruia@jpmchase.com

limited‑underwriting life product in June 2024. More broadly, we see traditional J.P. Morgan India Private Limited

banks pushing an increasingly aggressive digital and bancassurance distribution

Mehmet Sevim

model, accelerating sales of simple life products—helping to address South (971) 4428-1784

Africa’s low insurance penetration—while also compressing traditional insurers’ mehmet.sevim@jpmorgan.com

VNB margins, as highlighted in our recent half‑year market share monitor (link). J.P. Morgan Securities plc

Banks now capture 26% of the life insurance profit pool, and we forecast this to rise

to 30% by 2028, driven by 13% CAGR in banks’ insurance earnings versus 7–8%

growth for traditional insurers (see Figure 4).