The fifth edition of the SAIA Procurement Data Collation Project, reflecting industry data for the 2023 financial year, reaffirms the strong commitment of SAIA members to transformation. Significant procurement spend continues to be directed towards Black-owned businesses, fostering inclusion across the non-life insurance value chain and highlighting steady progress in advancing the industry’s transformation objectives.

In 2023, fifteen members took part in the project, accounting for 67% of the industry’s total net premium income and 93.4% of Personal Lines insurers. Although participation has decreased compared to previous surveys, it is encouraging that claims-related procurement (Core Procurement) has stayed steady at 83% of total procurement since 2021, showing stability in procurement practices across the industry.

Notably, substantial allocations were made to Exempted Micro Enterprises (EMEs) that are more than 51% Black-owned, with increased spending towards 100% Black-owned businesses and enterprises that are over 30% Black women-owned. These allocations concentrated on key categories such as Homeowners’ Cover, Personal Lines Motor, Towing, and Plumbing.

Despite a decline in the overall value of claims paid in 2023, members maintained a strong commitment to transformation. Progress was also made in collecting B-BBEE certificates, although challenges persist in the Broker Commission category, where many service providers remain non-compliant. The survey also highlighted regional trends, with most claims originating in Gauteng, followed by the Western Cape and KwaZulu-Natal. These insights suggest where future opportunities may lie in driving the transformation of the supply chain.

SAIA recognises and thanks all members who participated in this initiative. Their commitment not only improves transformation tracking but also strengthens policy development, contributing to a more inclusive and resilient insurance industry.