Technological Change in the Insurance Sector in South Africa: Disruption with the Potential for Social Good in a Developing Country Context?

Zaakhir Asmal, Haroon Bhorat, Lisa-Cheree Martin and Chris Rooney

Working Papers from University of Cape Town, Development Policy Research Unit

Abstract: Technological change has affected long-term change on countries and sectors across the world. One of the most visible manifestations of these changes is technology’s effects on Workplace Innovation (WI). Adopting the case study approach, we examine how technological change has affected the insurance sector in South Africa, with a particular focus on employment and job quality, skills and inequality. We find that technological innovation is likely to lead to job losses, while the effect on job quality is currently indeterminate. In terms of skills, our respondents experienced two challenges: the lack of skills transfer from older employees to younger employees and the recruitment of skilled individuals. Technological innovation is likely to worsen inequality in South Africa, as it advantages those who are highly-skilled, who tend to be from higher socioeconomic backgrounds. Overall, these findings suggest that technological innovation in the insurance industry needs to be carefully managed, with appropriate policies implemented so that all can benefit.

Keywords: Insurance sector; labour market; South Africa; technological innovation (search for similar items in EconPapers)
JEL-codes: D22 I24 J21 J24 O33 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2023-08
New Economics Papers: this item is included in nep-mac
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Published in Working Paper Series by the Development Policy Research Unit, August 2023, pages 1-33

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