Machine Learning Cracks the Code on Lion Communication
A new era of AI-aided acoustic research has opened a window into the complex social world of the African lion, […]
Africa
Magnus Carlsen and World’s Top Chess Players Show Their Skills in Cape Town
The University of the Western Cape hosted a simultaneous display ahead of the Freestyle Chess Grand Slam Finals
“Wrest Control of the Clinics From the Hands of the Vigilantes” Judge Tells State
Xenophobia is one of the greatest threats to democracy and human rights, says Judge Stuart Wilson
Who Was Albert Luthuli? The Murdered South African Leader Who Put His People Above Himself
His image is the watermark in South African passports, but he is not as widely known as leaders like Nelson Mandela and Desmond Tutu.
TransUnion South Africa Busts Three Short-Term Insurance Industry Myths
Every industry has its myths, and the short-term insurance environment is no exception: leading industry players plan their growth strategies around perceptions of a limited pool of customers, focusing mostly on pricing strategies to attract new business, and finding ways to avoid consumers perceived as too risky.
The best way to confirm or ‘bust’ industry myths is to test them through experiments and data analysis to reveal the truth – and that’s exactly what TransUnion South Africa did with data it holds in the short-term insurance sector.
“South African consumers remain under pressure despite recent interest rate cuts, making this an opportune moment for insurers to rethink their customer acquisition and retention strategies – and to challenge the truisms they’ve relied on in recent years,” said Schalk Fischer, insurance lead at TransUnion South Africa. “To drive better outcomes, insurers must evolve and adapt their strategies to respond to changing market conditions, drawing on risk-management solutions that feature unique data and advanced analytics.”
Myth 1: With stagnant total policy volumes, the only way for an insurer to grow is to win customers from other insurers.
In assessing all new short-term insurance policies taken out between April 2024 and March 2025, TransUnion found that only 17% of new policies were opened by consumers moving to another insurer. Another 37% involved ‘policy splitting’, where consumers moved cover of one of their assets to a new provider, but did not move their whole portfolio.
This means that roughly 54% of new policies are opened due to churn – a significant portion, but certainly not the overwhelming portion that many insurers believe it to be.
“This data shows key growth opportunities for insurers lie among consumers who are new to insurance. In fact, 33% of new policies opened during the time of the study were taken out by consumers who had not had an insurance premium in the previous 24 months,” Fischer said. “While the short-term industry will always be very competitive, there are growth opportunities outside of working aggressively to attract customers from other insurers.”
Myth 2: Loyalty in short-term insurance is dead. Price is the primary variable.
With many consumers scrambling for cost savings, price is perceived to be the most important differentiator between insurers, along with being seen as the main reason that consumers leave one insurer for another.
TransUnion’s analysis showed that 13% of insured consumers who cancel their insurance eventually return to their original insurance provider over time, without switching to another insurer in the interim.
This brand loyalty is fairly consistent between different distribution channels: 9% for banks’ insurance offerings, 11% for brokers, and 14% for direct insurers.
“These findings highlight that, while insurance pricing is certainly a leading consideration among consumers, it is evident that brand loyalty is still a driving factor,” Fischer said. “Marketing and acquisition strategies clearly focus on price, but there’s a greater than expected opportunity to build loyalty that will either retain customers or encourage them to return to brands they have trusted before.”
Myth 3: The new-to-insurance segment is small and only includes risky younger consumers.
TransUnion’s analysis revealed that one in three (33%) consumers who took out policies between April 2024 and March 2025 were new to insurance – they did not have short-term insurance payments linked to their identity number in the previous 24 months.
However, this doesn’t necessarily mean that all newly insured consumers were uninsured before. Some may have previously been covered under their partner or spouse, and later separated their insurance portfolios, or they could have been young adults who sought their own cover after being included in their parents’ policies.
“These findings show that insurers need to expand the scope of how they segment their target audiences, as new-to-insurance consumers are not always who they’re perceived to be,” Fischer adds.
The analysis revealed additional insights into consumers taking out a policy for the first time. Only 6% were aged 18 to 24 years – perceived to be the riskiest consumers – while the greatest portion of these consumers (36%) were aged 25 to 35 years, followed by 36 to 45 year olds, who took out 25% of new policies. It’s clear, then, that consumers aged 25 to 45 present the greatest opportunity for insurers.
In overlaying loyalty data with these findings, it emerged that only 1% of 18 to 24 year olds shopped around for a better deal once they were granted cover, while less than a quarter (24%) of 25 to 35 year olds shopped around. However, consumers aged 36 to 45 showed the greatest propensity to shop around for a better deal, with 29% taking on that challenge.
The myth is officially busted: opportunities for growth lie well beyond young consumers who have only just reached eligibility to apply for their own short-term insurance policies.
“While the short-term insurance market is perhaps not growing at the rate that many insurers would like, our analysis shows that it’s far from stagnant. Clear segmentation along with careful risk management and profitability assessments can help providers acquire lower-risk, higher-value customers across diverse groups of potential customers,” Fischer said. “While price remains a significant driver among consumers, other variables continue to play a meaningful role in building customer loyalty.”
Liquid C2 Expands Google Cloud Access in Africa
Liquid C2, a business of Cassava Technologies, a global technology leader of African heritage, has announced the launch of its […]
Ekurhuleni’s R0 Expropriation Implodes
The Ekurhuleni Metro’s attempt to expropriate private property for R0 has not merely failed – it backfired spectacularly. This fiasco exposes the hidden ideological agenda driving expropriation without compensation (EWC) and serves as a national warning against reckless political experiments that undermine property rights and the Constitution. For years the ruling party and certain opposition […]
The post Ekurhuleni’s R0 expropriation implodes – a warning against ideological abuse appeared first on Freedom Front Plus.
Payments to Sick Miners in Lesotho Resume After Fraud Scare
Medical Bureau for Occupational Diseases reports fraud of R1.4-million
ANC and Ramaphosa’s Arrogance Exposed
United States (US) Secretary of State Marco Rubio yesterday issued a sharply worded statement warning that America’s patience with South Africa and the country’s open defiance of the US has reached breaking point. Rubio’s statement makes it clear that America’s judgement of South Africa is no longer mere diplomatic sparring – it is the condemnation […]
The post Rubio exposes ANC and Ramaphosa’s arrogance and warns against South Africa’s self-destructive politics appeared first on Freedom Front Plus.
Facebook Promotes Rubbish Because It Doesn’t Understand Indigenous Languages
Content producers get away with fake news and clickbait
A Walk in the Night to Mark the End of Slavery
March through Cape Town commemorates the emancipation of slaves in 1834
Sudan’s Protesters Built Networks to Fight a Tyrant – Today They Save Lives in a War
Sudan’s neighbourhood committees represent a unique blend of political and practical action. They mobilise for change while addressing immediate community needs.
South Africa’s Automotive Market Accelerates to 11-Year High as Value Brands and Younger Buyers Drive Momentum
- 111 697 new passenger vehicles sold in Q3 – up 23.4% year-on-year, the highest quarterly total since 2014
- Chinese brands captured a record 15%+ market share, growing almost nine times faster than the market average
- Passenger-vehicle exports rebounded 4.1% year-on-year, powered by a 63.7% September surge to a six-year high
South Africa’s automotive market shifted into top gear in the third quarter of 2025, posting its strongest sales performance in more than a decade as greater macro-economic stability, easing interest rates and a firmer rand supported renewed consumer demand. According to TransUnion’s Q3 2025 Mobility Insights Report, total new-passenger-vehicle sales reached 111 697 units, 23.4% higher year-on-year (YoY), while new vehicle inflation dropped to a record low of 1.5% (since tracking began in 2008), creating one of the most competitive pricing environments in recent memory.
“Affordability and choice are redefining South Africa’s automotive landscape,” says Lee Naik, CEO TransUnion Africa. “Consumers are seeking greater value and flexibility and manufacturers that meet this demand through innovation and pricing discipline are winning the race for growth.”
Affordability Drives Record Growth and Market Realignment
Although established OEMs returned to positive growth in Q2 and Q3 2025, the market’s transformation is being led by Chinese manufacturers expanding nearly nine times faster than the overall market, with YoY growth of 89% in Q2 and 88% in Q3.
Their combined share has quadrupled since 2021 to more than 15%, powered by competitively priced, feature-rich SUVs and sedans that appeal to cost-conscious yet tech-savvy buyers. Top-performing value brands YoY included JAC (67% volume increase), GWM (54%), Mahindra (42%) and Chery (35%), while BMW (27%) proved that premium marques can still thrive by combining desirability with strong product pipelines.
“This isn’t a short-term surge, it’s a structural reset,” adds Naik. “The success of value-driven models shows how affordability, technology and trust are now the true levers of brand growth in South Africa.”
Younger and High-Income Buyers Sustain Demand
Despite surging sales, TransUnion’s recent Consumer Pulse Survey shows a modest easing in purchase intent, with the share of respondents likely to buy a vehicle in the next three months declining from 19% in Q2 to 17% in Q3. The report suggests that current sales momentum is being driven primarily by pent-up demand, dealer incentives and fleet renewals, rather than broad-based consumer confidence.
Purchase behaviour also remains sharply segmented across both age and income groups. Younger consumers continue to lead intent, with 21% of Gen Z and 19% of Millennials planning to buy a vehicle in the next three months, compared to 13% of Gen X and 8% of Baby Boomers. From an income perspective, high-income households earning R200 000 or more per month show the strongest intent at 34%, while middle- and lower-income consumers remain significantly more cautious in their purchasing outlook.
Electrification: A Tale of Price and Generation
Internal-combustion vehicles (ICE) remain the single largest category in consumer purchase intent, accounting for 42% of consumer preference, while interest in hybrid (39%) and plug-in hybrid (24%) models is steadily increasing. The shift toward electrification is most pronounced among Gen Z consumers, with 55% favouring hybrids and 32% considering battery-electric vehicles (BEVs).
This generational shift toward greener technology is evident among high-income buyers, with 75% considering plug-in hybrids, driven primarily by their perceived affordability. In contrast, preference for ICE vehicles remains largely affordability-based among lower-income segments. Higher budgets within affluent households enable greater consideration of hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEV), reinforcing an emerging “electrification divide.” This dynamic presents a significant opportunity for OEMs and financiers to tailor product offerings and financing strategies to meet the distinct needs of different age and income segments.
Connected Cars: Data Becomes the New Engine
Q3’s Mobility Insights Report special feature, The Connected Road, explores how connected-car technology is transforming mobility. Connectivity is now standard in most post-2015 vehicles, enabling real-time navigation, predictive maintenance, remote access, and advanced safety systems. Yet global data warns of “connectivity fatigue”: Over three quarters (76%) of drivers internationally don’t subscribe to connected services, mainly due to cost.
Naik says: “South Africa has a chance to leapfrog global missteps by focusing on value-adding applications, safer driving, cheaper insurance and smarter maintenance rather than gimmicks.”
Exports Rebound and Dealer Confidence Climbs
Passenger-vehicle unit exports rose 4.1% YoY after a steep Q2 contraction, driven by a 63.7% September surge that lifted shipments to a six-year high. Meanwhile, the RMB/BER Motor Traders Confidence Index advanced to 54, marking its second net-positive reading of 2025 and notably placing it above the neutral 50-point mark, which signals growing dealer optimism amid sustained sales momentum and improving export conditions.
Balancing Value and Transformation
The convergence of affordability, segmentation, electrification, and connectivity signals a pivotal shift in the automotive industry. “The future belongs to brands and financiers that master both the value-driven present and the connected, electrified future,” concludes Naik. “Data-led insight will be the bridge that connects today’s strategies with tomorrow’s innovation
Read the full TransUnion South Africa Q3 2025 Mobility Insights Report here.
This 18-Year-Old Is Challenging Kenya’s Culture of Overwork With AI
On a warm evening in Ruiru, a neighbourhood located some 24 kilometres from the Kenyan capital Nairobi, an 18-year-old with […]
From Murang’a to Studying Medicine Abroad: How St. George’s University Is Shaping Linus Njoroge’s Dream of Becoming a Doctor
Growing up in Murang’a County, Kenya, as the youngest of ten siblings, Linus Njoroge always understood the value of resilience and hard work. His father, a retired teacher, and his mother, a dedicated farmer, instilled in him the discipline to pursue education despite several challenges. But Linus’s path to medicine was also deeply personal; childhood …
Child Murder in Mitchells Plain
The GOOD Party is shocked and deeply saddened by the brutal killing of a nine-year-old boy in Mitchells Plain on Tuesday night. A 21-year-old woman and a 26-year-old man were also killed, while a 51-year-old and a 36-year-old man were wounded in the same attack.
The post GOOD PARTY CALLS FOR SWIFT JUSTICE AFTER CHILD MURDER IN MITCHELLS PLAIN appeared first on For Good.
St Lucia’s hippo celebrities
While tourists take excursions to see them on the lake, these semi-aquatic mammals wander into town every night
Sunday Times Need Not Apologise for Self-Corrected Errors
Ombud rules reputations may be harmed if it is in the public interest
South Africa Needs to Rethink How It Measures Intellectual and Developmental Disabilities – What’s Lacking
South Africa needs to take pragmatic steps to plug the shortcomings in the data that’s collected on people with intellectual and developmental disabilities.
Eskom Starts Environmental Assessment for a Third Nuclear Power Station
Thyspunt in the Eastern Cape and Bantamsklip in the Overberg are proposed sites
South African Automotive Market: Recovery Gains Traction but Headwinds Persist
- New passenger sales rose 22.5% year-on-year, the strongest volumes since 2014
- Chinese automakers expanded their market share to nearly 15%, up from just 3.1% in 2022
- Passenger-vehicle exports contracted sharply, down 24.6% amid weaker global demand and new US tariffs
TransUnion’s latest Mobility Insights Report shows South Africa’s automotive market building momentum in 2025, supported by a favourable interest rate environment, record-low new-vehicle inflation, and liquidity from the two-pot pension reform. While recovery is underway, the outlook remains fragile, with affordability constraints and export headwinds threatening longer-term growth.
Supportive Shifts, But Growth Remains Fragile
The South African Reserve Bank has cut interest rates five times since September 2024 and inflation has returned to the lower end of the 3-6% band1, providing households with some relief. Consumer confidence has improved among middle- and higher-income groups, although low-income consumers continue to face pressure from food and electricity costs2.
“These macro shifts provide short-term support to the vehicle market, but momentum is likely to taper in 2026 without further reforms,” said Lee Naik, CEO of TransUnion Africa.
Affordability And Value Drive a Surge
Passenger car sales broke through the 35,000-unit ceiling for the first time in years, with July and August 2025 marking the strongest volumes since 2014. According to Naamsa, new passenger car sales grew 22.5% year-over-year (YoY) in Q2, fuelled by lower borrowing costs, aggressive OEM incentives and the entry of new value-focused brands.
Chinese automakers continued their rapid growth, expanding market share from 3.1% in 2022 to nearly 15% in Q2 2025. Their affordable, tech-rich SUVs and expanding dealer networks are reshaping competition, forcing legacy OEMs to rethink pricing, features, and model cycles. Toyota retained overall leadership, with Suzuki securing second place for the second consecutive quarter.
“Improved affordability, aggressive incentives and growing demand for value brands, alongside modest support from two-pot withdrawals, helped sustain momentum through 2025. However, as interest rates remain elevated and credit conditions tighten, and the two-pot effect normalises, growth is expected to moderate in 2026, with export risks and rand volatility adding uncertainty,” said Naik.
Diverging Trends: New vs. Used Vehicle Demand
NaTIS data shows new registrations rising 20% YoY in Q2 2025, led by Northern Cape, Free State and Northwest. In contrast, used registrations declined by 1.4%, reflecting pressure in that segment.
Across all vehicle sales, the Used-to-New Vehicle Registration Ratio rose to 3.2 in Q2, up from 2.5 in Q1, indicating a quarter-on-quarter increase in the relative share of used vehicle registrations. However, this remains below the 3.8 ratio seen through much of 2024, suggesting that new vehicles have regained some ground YoY. While used vehicles continue to dominate overall registrations, the market has shifted slightly back toward new vehicles compared to last year. This nuanced divergence presents opportunities for OEMs and dealer networks, while independent used dealers continue to face headwinds.
Exports Slump Amid Global Shocks
While domestic momentum improves, passenger vehicle exports fell 24.6% in Q2 2025 due to softer global demand and new US tariffs of up to 30%. Premium models, heavily reliant on the US and European markets, are under pressure, raising concerns for production, jobs, and investment.
Two-pot Withdrawals: Targeted Liquidity with Visible Impact
The September 2024 two-pot retirement reform injected liquidity into households, with evidence from the Bureau of Market Research suggesting a direct impact on mobility demand3, particularly in the used car market. While withdrawals were generally insufficient to fund deposits for new vehicles, they provided meaningful support to affordability-driven used vehicle purchases.
The reform is offering short-term relief rather than long-term wealth extraction, with withdrawals largely used for deposits, consumption, or debt repayment. Generational differences are evident: Millennials (aged 29 to 44) and younger Gen X (aged 18 to 28) are the most active claimants, while Baby Boomers withdraw minimally. Repeat withdrawals are becoming more common, suggesting both ongoing financial strain and the emergence of a recurring source of liquidity for entry-level and mid-market segments4.
“Two-pot withdrawals were not the only factor lifting sales,” noted Naik. “But the timing, scale and claimant profile suggest they acted as a meaningful catalyst for incremental used-car purchases.”
What Industry Players Should Do Next
Looking ahead, TransUnion advises that OEMs, dealers and lenders recalibrate strategies to balance domestic opportunities with external risks. Industry participants should align campaigns with liquidity cycles, planning promotions and stock availability around expected two-pot withdrawal windows.
Affordability must remain the priority, with a sharpened focus on value brands, certified pre-owned vehicles, and models that deliver a strong total cost of ownership. Financing solutions should also evolve, offering deposit support, trade-in boosters, and more flexible terms, while carefully monitoring repayment behaviour to manage post-purchase risk.
At the same time, leveraging data-driven insights, integrating credit and registration analytics to identify liquidity-sensitive buyers, preapprove customers, and track repayment performance, will be critical for sustaining growth in an uncertain environment.
“South Africa’s auto market is regaining momentum, but it’s a fragile recovery,” said Naik. “Those who time offers to policy-driven liquidity, sharpen affordability, and manage risk proactively will be best placed to capture growth.”
Read the full TransUnion South Africa Mobility Insights Report here.
ENDS
Notes to Editors: The Q2 2025 release is the second edition of the TransUnion South Africa Mobility Insights Report, formerly known as the Vehicle Pricing Index. The rebranded report now captures broader consumer, financing, and insurance insights across the mobility ecosystem.
Sources:
1 South African Reserve Bank (SARB)
2 TransUnion-South-Africa-CCI-Report-H2-2025-V9.pdf
3 Two-pot-claims-and-credit-data-FINAL.pdf
4 FAnews: Majority of two-pot withdrawals in the new tax year are repeat withdrawals; Moneyweb: Two-pot withdrawal: repeat claims surge; and Moneyweb, Two-pot payouts surge to R57B, with 4m withdrawals to date.
These Kenyan Children Are Rewriting a Future the World Ignored
The rugged hills of Baringo County, located 300 kilometres west of Nairobi, glow the colour of rust under the relentless […]
Stimson Middle Welcomes Randa Slim to Lead Middle East Program
December 1, 2025 – Middle East & North Africa – Washington, D.C. – The Stimson Center is pleased to announce […]
Nigeria’s Low-Cost Private Schools Are the Only Option for Millions: Is Closing Them a Good Idea
Stronger public investment is needed so families are not forced to pay privately for basic education.