B. The short‐term insurance market 1990–2000

Abstract

The decade opened with the market dealing with the aftermath of the collapse of the AA Mutual a large short-term insurance company. As a consequence the regulator was completely reorganised, the supervisory legislation revised and a voluntary ombudsman appointed. As the decade progressed and the first Black majority government was elected optimism ruled as foreign insurers returned to the market. The legislative reforms however did not cease as the new government as the new government found its feet and embarked on an extensive review of legislation affecting financial markets. The South African market was also being influenced by developments which took place in foreign markets, in particular mergers and acquisitions. The market had difficulties in producing an underwriting profit. It started the decade making a loss and ended as it started.