The Life Insurance Industry

956 Words4 Pages
Modern man tries to protect himself and his possessions against many risks like illness, accidents, death, theft and liabilities. These interests can be protected in various ways: (a) He can take preventative measures to limit loss such as wearing a safety belt while driving a vehicle or installing smoke detectors in a factory; or (b) He can save money and with time build up a private fund; or (c) Co-operate with other legal subjects to collectively cover losses that have been incurred. However, in the above three scenarios, protective measures are not adequate protection. The solution to these problems is found in a formal insurance. Insurance regulation is a dynamic, ever-evolving to achieve an appropriate balance between providing adequate consumer protection and allowing them to gain maximum returns. Given that insurers and the products being offered change over time, it is vital for the regulatory framework to keep pace with dynamics of the Life Insurance Industry. This study explores areas where the life insurance industry has changed over time through different product offerings, globalization, evolving technology, and changes in the economic environment of Discovery Vitality Life. The study provides a framework to assist regulators in assessing which changes have been successful, which need improvement, and what needs to be addressed in the future. INDUSTRY BACKGROUND The South African life insurance industry has become the fastest growing and most dynamic
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