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The South African Insurance Industry Survey 2016 | 39

Life & Non-life Insurance Penetration Sources: Swiss Re, NKC Research Although the life expectancy in South Africa is slightly lower
than the other three countries, the ratio of life to non-life
12.5 insurance has a stronger correlation with the violent crime
South Africa rating than life expectancy as this is more “newsworthy”
than other means of death.
10.0
Violent crime is not the only sensational cause of death.
Life (%) 7.5 Events such as natural disasters, large motor accidents or
terrorist attacks could also fall into this category. Although
Emerging Economies it is one of many factors that impact the prevalence of life
insurance, it is certainly one to be considered.
Namibia Advanced Economies 45˚ line
5.0 Does this bias provide guidance for the expansion of the life-
5.0 Botswana Mauritius Global Avg insurance industry into untapped markets?

Africa In conclusion
2.5 Africa, excl SA Human nature - and the irrationalities that go along with it -
is one of the biggest drivers of the insurance industry. The
0.0 Kenya impact of this can also be seen in the marketing campaigns
10 0.02 Morocco of insurers that play to improbable sensational fears (shark
attacks, bungee jumping) to trigger the risk averse nature
.5 of consumers. To ignore human irrationality in the insurance
Non-life (%) industry would be simply irrational.

Country Violent crime Life expectancy12 As the mystery of human nature slowly reveals itself, it
(higher rating creates numerous opportunities in the insurance industry.
= worse)11 Are you making full use of these opportunities or will you
miss your golden carriage?
South Africa 31 60
10 Swiss Re, NKC Research
Kenya 6.4 61 11 Global Study on Homicide 2013 (PDF full report). Published in April 2014, by United Nations Office on Drugs
Namibia 17.2 68
Morroco 2.2 71 and Crime (UNODC).
12 World Health Organization (2013) - Data published in 2015 (Retrieved on 11 February 2016