The 2026 shift: how industry leaders are preparing
As the South African financial services sector braces for 2026, the industry is undergoing a period of significant transformation. From regulatory shifts to technological disruptions, the landscape is changing rapidly.
FAnews reached out to key industry leaders to provide insight into what lies ahead, what challenges need addressing, and how professionals can stay ahead in a year of uncertainty.
Here is a summary of what some of them said. The full article features in the FAnews February 2026 edition.
The financial sector in 2026
As the financial sector faces a pivotal moment heading into 2026, Lizelle van der Merwe, CEO of the Financial Intermediaries Association (FIA), outlines the key challenges and opportunities: “Recent conversations at our Advisory Council revealed both the challenges we must confront and the opportunities we cannot afford to miss.”
Van der Merwe highlights several critical issues shaping the sector: “Succession planning remains a priority, especially with the rising cost of advice due to compliance. We expect the trend of mergers and acquisitions to continue, with a focus on supporting members with long-term business strategies.”
On regulatory complexity, she notes, “Smaller firms are especially burdened by compliance costs. The FIA advocates for proportionate, risk-based regulation that scales appropriately to firm size and risk profile.”
Digital transformation is another priority: “Digital adoption is no longer optional. Those who fail to embrace technology risk being overtaken by competitors,” she warns. “AI offers a game-changing advantage, streamlining compliance, enhancing client service, and enabling intermediaries to focus on meaningful advice.”
Van der Merwe’s advice for intermediaries is clear: “Invest in quality AI tools now. Those who adapt quickly will thrive, while those who lag behind risk becoming obsolete.”
Economic shocks and industry shifts
As we head into 2026, Velene Peters, President of Gauteng Women in Insurance (GWII) and CEO of Charter Risk, highlights the impact of ongoing geopolitical tensions on South Africa’s economy: “In August 2025, the U.S. imposed a 30% tariff on all South African exports, leading to an 85% drop in car exports and threatening thousands of jobs in agriculture.” Peters warns that these challenges, along with rising inflation and currency volatility, could push policyholders to reduce premiums or cancel coverage.
Peters also emphasises the importance of AI adoption for insurers: “Insurers must adopt AI to stay competitive, but this comes with increased cyber, ethical, and operational risks that need to be carefully managed.”
For the industry to thrive, Peters stresses the need for collaboration and transparency: “The insurance industry is built on trust, transparency, and communication. Stakeholders must share information openly to strengthen resilience.”
To succeed in 2026, she concludes, “The professionals who thrive will be those willing to keep learning, remain agile, and respond proactively to disruption.”
Opportunities and innovation in the non-life sector
As Viviene Pearson, CEO of the South African Insurance Association (SAIA), looks to 2026, she highlights both the challenges and opportunities within the non-life insurance sector: “Climate change is reshaping risks and driving innovation in resilient products and partnerships.” Pearson also points out that while economic pressures affect affordability, they also open up opportunities for more accessible, usage-based solutions.
She stresses the importance of collaboration in addressing these challenges: “Systemic risks, like failing infrastructure and rising cyber threats, require innovative coverages and collaboration to safeguard critical services.” Pearson also sees regulatory requirements, such as conduct, ESG, and transformation, as opportunities to foster trust and inclusion in the sector.
To build stronger trust, Pearson calls for alignment around customer value: “We need to offer simpler products, fairer incentives, and digital tools that enhance advice.” She believes that through collaboration, the non-life insurance industry can broaden access and support climate resilience, ultimately transforming perceptions of insurance into that of a “true partner in resilience and recovery”.
Adapting to changing expectations and regulatory shifts
Lelané Bezuidenhout, CEO of the Financial Planning Institute of Southern Africa (FPI), stresses the need for the industry to evolve to stay relevant: “Clients today seek holistic advice, clear fee structures, and relationships built on trust and professionalism.” She adds that the Treating Customers Fairly (TCF) framework must go beyond compliance to become a core practice within the industry.
Bezuidenhout highlights the importance of embracing the changing regulatory landscape, noting: “The upcoming COFI Bill and ongoing focus on AML/CFT are here to stay. The industry must embrace these regulations early to gain a competitive advantage.”
While AI and automation play a role, she emphasises the value of human connection: “Technology should streamline processes and free up time, not replace the client relationship, but deepen it.” Bezuidenhout advises professionals to focus on becoming trusted advisers who offer personalised, ethical advice: “The true value lies in the human connection, which technology cannot replace.”
Resilience and transformation in 2026
Thokozile Mahlangu, CEO of the Insurance Institute of South Africa, outlines the core challenges and imperatives for the financial services sector in 2026: “The industry must balance risk management with purposeful transformation to remain relevant.” She emphasises the need for three priorities: “trust, transparency, and technological agility.”
Mahlangu highlights systemic risks, including climate volatility and cyber threats: “Insurers must evolve beyond traditional risk models, integrating real-time data and predictive analytics to mitigate emerging exposures.” She also stresses the importance of addressing protection gaps in underserved communities: “Affordability and accessibility remain barriers to meaningful coverage, particularly for small enterprises.”
Collaboration is key, says Mahlangu: “Intermediaries, insurers, reinsurers, regulators, and tech providers must forge ecosystems of shared intelligence and mutual accountability.” She points out that trust will be earned through consistent value delivery, “measured in both financial outcomes and societal impact.”
In terms of digital transformation, Mahlangu believes that “human-centred design, ethical AI, and culturally competent communication” will distinguish industry leaders. Her final piece of advice for professionals is: “Cultivate adaptive intelligence – stay abreast of regulatory shifts and technology trends, and develop the emotional acuity to lead through uncertainty.”
Collaboration and consumer protection
Makgompi Raphasha, Departmental Head: Insurers Supervision Department at the Financial Sector Conduct Authority (FSCA), highlights the evolving landscape of the South African financial sector: “Technological innovation, shifting customer expectations, and emerging risks are reshaping the industry.” As customers demand more personalised and accessible financial solutions, Raphasha points out that “advances in fintech and AI present both opportunities for efficiency and new challenges, particularly in online harm risks.”
Raphasha stresses the need for balance: “The industry must balance agility with the responsible deployment of technology.” He emphasises that fairness and consumer protection should remain top priorities, especially in light of rising cyber threats, climate risks, and financial strain on customers.
Read the full article and gain deeper insights from industry leaders in the February 2026 edition of FAnews.
Plus, hear from experts at Alexforbes, PPS Investments, and Allan Gray on investment strategies and market dynamics.
With mounting pressures from climate change, rising claims, economic uncertainty, and shifting customer expectations, experts from the non-life insurance sector - including Standard Insurance Limited, Discovery Insure, Old Mutual Insure, Elite Risk Acceptances, and Specialty MGA - share the key themes shaping the year and how they’re preparing.
Writer’s Thoughts
As the financial sector braces for the challenges and opportunities of 2026, one thing is clear: agility, collaboration, and innovation will be key to navigating this transformative year. The question remains - will industry leaders rise to the occasion and embrace the changes that will define the future of finance? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts.
