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

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.