According to a new report called 'South African Insurance Industry Forecast to 2013', the South African short-term insurance industry is still largely untapped and therefore has the potential to grow about 11 percent between 2009 and 2013.

'South African Insurance Industry Forecast to 2013' by market research consulting Services Company RNCOS is a comprehensive research report that comprises quality research and in-depth analysis of the insurance market in South Africa. It studies the emerging market trends, recent developments and their impact on the market.

According to the document, only 2.5 million South Africans have short-term insurance cover at present.

With alarming rise in road death toll and high medical expenses, the accident and health insurance is becoming a common need for every resident in South Africa. People are eagerly buying accident and health insurance to avoid their financial loss arising from accidents or falling ill. Statistics show that traffic crashes to individuals, commerce, communities and the country have an annual price tag of around 38 billion rand. According to RNCOS, there is therefore a huge scope for growth in this segment of the insurance industry.

Moreover, as all businesses are exposed to the public at large in some way or another, liability cover is essential for any business operating in the country. With growing business risks and massive awareness programs, the liability insurance net premium is expected to grow at a CAGR of about 36% during the forecast period (2009-2013).