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      Presence with purpose

      Purpose and progress are closely interrelated concepts. How we measure and understand progress is strongly influenced by our understanding of its purpose.

      Given where we are in the digital revolution, and particularly the possible changes coming from artificial intelligence (Al), our ability to leverage technology to drive progress has perhaps never been greater. However, without a clear understanding of the purpose behind that progress, we risk accelerating towards unintended ensences and unexpected outcomes.

      This tension between progress and purpose runs through much of this year's South African insurance industry survey. The articles cover subjects ranging from Al and data to financial reporting, risk management, geopolitics and financial inclusion.

      However, reading them together, some remarkably consistent questions emerge: what are we trying to achieve, what risks are we creating along the way, and where does human judgement and accountability need to remain present? It is this tension that sits behind our theme this year: presence with purpose.



      Featured articles

      Global and South African life insurance markets showed resilient asset growth and steady claim payouts through 2025 and into 2026, driven by higher interest rates and strong equity markets despite economic headwinds.

      The South African non-life insurance industry entered 2026 from a position of strength. Revenue growth, improved profitability and robust capital positions continue to demonstrate the resilience of the sector. 

      Considering the complex global challenges, especially the economic shifts and geopolitical tensions, insurers face a critical need to adapt and reaffirm their core values to maintain relevance with consumers, regulators and the wider community.

      The emerging prominence of AI alongside the increased incidence of cyber threats presents a shifting risk profile. The critical question for insurers to consider is no longer about whether to underwrite AI, but whether their current cyber, liability and professional indemnity portfolios are already exposed to AI risks.

      In the world of fashion, fundamental dress codes are developed, evolve season after season and are refreshed to reflect consumer demands and expectations. Financial reporting is no different with IFRS 18 bringing through the latest style change for insurers..

      Ethical challenges have been identified as one of the biggest obstacle to AI implementation, centering around fairness and trust. The question for insurers then becomes: how can insurers adopt AI and automate processes while still maintaining client trust?

      Are we fully comprehending the risks associated with the cultural zeitgeist of our generation, artificial intelligence (AI)? This is a question insurers are asking, not only in relation to their own AI use cases, but also from a product development perspective.

      In the insurance industry, most of our daily professional attention is naturally concerned with the dynamics of individual products, technical discussions and detailed analysis of data. Rarely do we take a step back to appreciate the broader global power and impact of insurance.

      Insurance was initially built to protect individuals largely from personal risks. As insurance and broader societal development have become increasingly effective at managing many of those risks, public concern has shifted towards risks that individuals cannot meaningfully control on their own.

      Across South Africa's insurance sector, corporate purpose has become an increasingly prominent feature of strategic positioning. The challenge, however, is whether purpose and intent are enough. To what extent are these commitments integrated into core business models rather than existing alongside traditional profit-driven strategies?

      The insurance industry has become increasingly dependent on high quality data to support critical activities such as IFRS 17 and ORSA reporting, SAM compliance and catastrophe risk management, amongst others. As regulatory expectations continue to evolve and business environments become more complex, the ability to access accurate, timely and trusted data is no longer just a compliance requirement, but a strategic business imperative.



      The South African Insurance Industry Survey 2026

      Proudly published for more than 25 years.


      Our people

      Derek Vice

      Partner

      KPMG in South Africa

      Kashmira Naran

      Partner

      KPMG in South Africa