Abstract

VERHOEF, Grietjie. Innovation and expansion: Product innovation and expansion in insurance in South Africa. The case of Sanlam, 1920-1998. Historia [online]. 2016, vol.61, n.1, pp.66-91. ISSN 2309-8392.  https://doi.org/10.17159/2309-8392/2016/v61n1a7.

The insurance industry is generally perceived to be a conservative, risk averse enterprise following market developments rather than leading them. This article explores the development of innovation in the South African long-term insurance market in the context of the development of the South African economy after the formation of the Union of South Africa. A leading role player in this market is Sanlam, a company leading the South African long-term insurance industry in product innovation. This article investigates the strategy used by Sanlam to establish itself in a market dominated by British insurance companies. It then explores the use of product innovation by Sanlam since the early 1920s to expand its market share. The competitive advantage acquired by Sanlam in the insurance industry by the end of the twentieth century paved the way for subsequent expansion and diversification.

Keywords : Product development; longevity; long term insurance; disability; premiums; investments.

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