Reinsurance Resilience: Jane March's Outlook for 2025

Jane March, CEO of Guy Carpenter South Africa, offers a comprehensive perspective on the Southern African reinsurance market's current state and future potential. After facing significant challenges, including COVID-19, the KwaZulu-Natal floods, and a hardened global reinsurance market, Jane notes that the industry is finding stability. Reinsurers have seen improved return on equity and profitability, creating a more favourable environment for local insurers and brokers.

One of the market's strengths is its growing professionalisation and focus on knowledge sharing. Jane highlights increased collaboration between international reinsurers and regional players, fostering skill transfer and innovative solutions. Among these innovations, parametric solutions are gaining momentum, offering targeted support for uninsured populations and high-risk scenarios like floods. Such solutions, alongside capital and solvency protection deals, demonstrate the industry's adaptability to African market needs.

While economic constraints continue to impact growth, Jane emphasises the improved capacity in catastrophe and excess loss insurance, supported by disciplined underwriting. The market's diversification appeal is attracting cautious yet promising interest from international players, signalling confidence in the region.

Jane also acknowledges the skill shortage in this niche sector, underlining the importance of attracting new talent. With early indications suggesting a positive outlook for 2025 renewals, she remains optimistic about the industry's resilience and capacity for innovation. This recovery underscores the critical role of reinsurers and brokers in delivering value to local markets.

Jane concludes with optimism, viewing the market's trajectory as a testament to its adaptability and commitment to meeting regional challenges through tailored solutions and a disciplined approach to growth.

Key Points

• The reinsurance market in Southern Africa is stabilising after three difficult years.

• Economic constraints hinder growth, but innovation and collaboration offer opportunities.

• Parametric solutions are emerging as a viable option for addressing difficult risks.

• Improved capacity in catastrophe and excess loss insurance is attracting international interest.

• Knowledge sharing and skills transfer are enhancing the industry's professionalism.

• A skills shortage remains a challenge, emphasising the need to attract talent.

• Early signs for 2025 renewals are positive, with better outcomes anticipated.