It’s funny how we define “underdog” in South Africa. Capitec isn’t exactly small anymore—they’ve got more than 22 million customers. That’s nearly half the adult population. But in the world of life insurance and complex funeral policies, they were always the “new kids.”
I was chatting with a former colleague at a coffee shop in Rosebank last Tuesday, and we were laughing about how we used to think insurance required a three-piece suit and a twenty-page contract. Capitec looked at that and said, “Nah, let’s put it on the app.”
That’s their secret sauce. They don’t just sell insurance; they sell convenience. And in a country where we’re all perpetually busy and slightly annoyed by paperwork, convenience is the ultimate currency. Have you ever tried to claim from a traditional insurer while standing in a hospital lobby? It’s a nightmare of faxes—yes, some still use faxes—and “on-hold” music that sounds like it was recorded in a tin can.
Capitec’s move into the insurance space wasn’t just a side project. It was a declaration of war. By bringing their life insurance business in-house—ending their long-standing partnership with Sanlam to launch Capitec Life—they signaled that they’re done playing second fiddle.
The Numbers Don’t Lie (But They Do Tell a Story)
If you look at the 2026 financial results, the growth is staggering. Capitec’s insurance income is now a massive pillar of their profit. They’ve managed to convert millions of banking clients into insurance policyholders. How? By making it so easy you can do it while waiting for your kettle to boil.
But here’s the thing. Sanlam and Old Mutual aren’t just sitting there like statues in a park. They’re pivoting. Fast.
Old Mutual finally launched their own bank—OM Bank—to fight back. It’s a classic “if you come for my lunch, I’m coming for your breakfast” move. They realized that if Capitec is using banking to sell insurance, they have to use banking to keep their insurance clients from leaving. I saw an Old Mutual ad on the Gautrain yesterday, and it looked suspiciously… modern. Bright colors, simple language. They’re learning.
Personal Experience: The “Grandmother” Test
I always use my grandmother as the ultimate barometer for financial tech. She lives in a small town in the Eastern Cape. For thirty years, she had an Old Mutual policy. She trusted the brand because it was “the way things were done.”
A few months ago, she called me, sounding genuinely impressed. “I went to Capitec to draw my pension,” she said, “and the lady helped me set up a funeral plan on my phone. It’s cheaper, and I don’t have to go to the office in town anymore.”
That right there is the “Dethrone” factor. When you win over the grandmothers in the Eastern Cape, you’ve won the ground war. Traditional insurers rely heavily on brokers—middlemen who take a cut and often add a layer of complexity. Capitec’s model is direct. It’s visceral. It’s right there in your pocket.
The Ecosystem Wars: Banking vs. Insurance
We’re no longer just talking about “banks” and “insurers.” We’re talking about ecosystems.
In the old days—well, 2015—you had a bank for your salary, an insurer for your life, and maybe a separate company for your car. Now, it’s all merging.
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Capitec’s Edge: They have the most frequent contact with the customer. You check your bank app probably once a day. How often do you check your Sanlam portal? Once a year? Maybe? That daily “touchpoint” is gold. It allows Capitec to nudge you at exactly the right time. “Hey, we see you just had a baby—want some life cover?”
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The Giants’ Edge: Sanlam and Old Mutual have deep, deep pockets and decades of actuarial data. They know how South Africans live (and die) better than anyone. They also handle the “high-end” of the market—the high-net-worth individuals who need complex offshore trusts and estate planning. Capitec isn’t quite there yet.
I’ve worked on digital transformation projects in the financial sector, and I’ve seen the “legacy” systems that the big insurers struggle with. It’s like trying to turn an oil tanker in a swimming pool. Capitec is a speedboat. Speedboats are great until the water gets really rough, but in a race for market share, I’d bet on the faster craft almost every time.
Can They Truly Dethrone Them?
It depends on how you define “dethrone.” If you mean “become the biggest insurer by value of assets managed,” then no. Not for a long time. Sanlam is a global beast with footprints in India and across Africa. They manage trillions.
But if you mean “the most popular choice for the everyday South African,” then the crown is already slipping.
I think we’re seeing a split in the market. The “Big Two” will likely keep the wealthy, corporate, and investment-heavy clients. They’re the “Private Wealth” kings. But for the middle class and the mass market? Capitec is eating their lunch, their dessert, and even the little mint that comes with the bill.
Is it a perfect system? No. I’ve had my own frustrations with Capitec’s “one-size-fits-all” approach. Sometimes you want to talk to a person who understands your specific, weird financial situation. Sometimes an algorithm isn’t enough.
Why This Competition Is Good for You
Regardless of who wins, we—the consumers—are finally getting a better deal. Do you remember how high funeral cover premiums used to be before the “Capitec effect”? They were exorbitant. Now, everyone is slashing prices and adding “value-adds” like data or grocery vouchers just to keep you from switching.
Rhetorical question: When was the last time a giant corporation fought this hard for your R100-a-month policy?
It’s refreshing. It’s also a bit chaotic. I’m seeing Sanlam partner with TymeBank, and Old Mutual spending billions on IT infrastructure. It’s a tech arms race. And as someone who has seen the “under the hood” mess of old-school insurance, I say: bring it on. ## The “App” Trap and the Future of Trust
There is one risk, though. As everything moves to the app, we lose that human touch. I remember my dad’s insurance broker, a guy named Mike. Mike knew our family. He knew when my sister graduated. He knew when the dog died. There was a level of trust there that a “Push Notification” can’t replicate.
Capitec’s challenge will be maintaining trust as they scale. It’s easy to be the “friendly bank” when you’re small. It’s harder when you’re the giant everyone is gunning for. If they have a major system outage or a data breach in their insurance division, the fall will be just as fast as the rise.
Looking Toward 2027 and Beyond
So, what’s the final verdict?
I don’t think Sanlam or Old Mutual will ever “die.” They are too ingrained in the fabric of the JSE. But they are being forced to humble themselves. They’re no longer the only game in town, and they know it.
If I were a betting man—which I am, occasionally, on a Saturday at the Durban July—I’d say Capitec will become the largest retail insurer by policy count within the next eighteen months. They won’t have the most money, but they will have the most people.
And in a democracy like South Africa, having the people is the ultimate power.
What Should You Do?
Don’t be loyal to a brand just because your parents were. Whether it’s the “Big Green” of Old Mutual or the “Global Bank” of Capitec, make them earn your business.
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Check the “Hidden” Fees: Traditional insurers love a good admin fee. Capitec loves a flat rate. Compare them side-by-side.
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Test the App: If the app takes more than three clicks to find your policy, it’s too complicated.
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Think Long Term: Insurance is a decades-long commitment. Do you trust that the “new kid” will be around in 2050? (Given Capitec’s track record, the answer is probably yes, but it’s worth asking).
I’m sitting here finishing my second cup of coffee, looking at my own banking app. I’ve got policies with two of the three companies I’ve mentioned today. Why? Because I’m playing them against each other. And you should too.
The throne isn’t just being challenged; it’s being remodeled. And honestly? It’s about time. The old way of doing things was dusty, expensive, and frankly, a bit boring. If Capitec brings a bit of “disruptive energy” to the funeral and life insurance space, we all win.
Just don’t forget to read the fine print—even if it is on a five-inch screen.