Insurance In South Africa Set To Become More Affordable |
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May 5 - There is an enormous upsurge in the desire for short-term insurance in South Africa, and the catalyst for this interest is primarily low-income earners. The South African insurance industry needs to adapt to this emerging market, and offer more affordable policies for households that earn less than R3,000 per month. It has been estimated by insurance industry bean-counters that the number of these households that will purchase short-term insurance policies will more than double by 2014. Meanwhile the long-term insurance market is also set to explode thanks to the desire of low-income earners to own life insurance. The number of policies purchases is expected to grow at more than 80% during the same period of time. An incredible 40% of all South African households, or 11 million people, currently fall into this low-income category. An even more amazing and disturbing statistic is the following: Of those 11 million people, only 12% have life insurance at the moment. The goals of the South African insurance industry are clear. They need to educate people about insurance, make it simple and clear to purchase these products, and obviously they need to make those products affordable as well. The banking industry in this country has already started their initiative and the insurance sector is set to do much the same, offering low-priced alternatives for the disadvantaged members of our community. Related Insurance Articles: * Expensive SA Insurance Myths - Part 1 of 3 * A Small Saving With Insurance Premiums - What It Really Means * Learn How To Lower Your Premiums * Santam To Launch New Home Insurance Product * Dial Direct Discusses How Premiums Are Derived * South Africans Need To Insure Their Bikes * South African Insurance Products Viewed In A Different Light * South African Car Insurance Updates For 2006 
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| 3/14/2010 7:05:45 AM | |||||||||||||||||||||
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