Areas in Which the Life Insurance Industry Has Changed over Time Essay

Areas in Which the Life Insurance Industry Has Changed over Time Essay

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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.


The South African life insurance industry has become the fastest growing and most dynamic market (nmg Consulting, 2012). Around 1730 BC, Hammurabi issued a proclamation stating that all the merchants who were participants of a caravan had to make a payment towards any damages caused by theft of the property. This type of manual assistanc...

... middle of paper ...

...des, taking its shape from the various regulatory, legal, technological and social changes of history. As the insurance industry evolved, it became increasingly global, competitive and interconnected. Insurers now compete and operate across many different international jurisdictions, whose regulatory and accounting frameworks differ.


Axa Equitable History. (2012). Axa -Equitable History. Retrieved 04 25, 2014, from

Nagel, C. J. (2011). Commercial Law 4th Edition. South Africa: LexisNexis.

nmg Consulting. (2012). South Africa Life Insurance. South Africa: nmg Consulting.

Obersteadt, A. (2013). Study on the State of the Life Insurance Industry:. CIPR Study.

Roe, M. (1993). Foundations of Corporate Finance: The 1906 Pacification of the Insurance Industry (3 ed., Vol.93). Columbia: Law Review Association Inc.

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