S&P said both life and non-life insurers are well positioned to navigate a challenging operating environment over the next two years, supported by strong capital buffers, prudent risk management and a robust regulatory framework.
South Africa’s insurance industry is expected to remain resilient despite mounting geopolitical tensions, economic uncertainty and growing climate-related risks, according to a new report by S&P Global Ratings.
In its latest assessment issued on Wednesday, S&P said both life and non-life insurers are well positioned to navigate a challenging operating environment over the next two years, supported by strong capital buffers, prudent risk management and a robust regulatory framework.
The report comes amid heightened concerns over the economic fallout from the conflict in the Middle East, which has raised uncertainty around commodity prices, inflation, supply chains and global financial markets.
Despite these risks, S&P believes South Africa’s insurance sector remains fundamentally sound.
