Understanding the Zimele Insurance Product

December 9 - In 2004, the South African long term insurance industry set out to create an initiative that would allow low income earners to easily identify products that met certain standards of affordability, convenience and accessibility.

The main aim of this objective was to see this socio-economic group penetrate the financial services market, and the Zimele endorsement standard was created.

Zimele, which means 'to stand on your own two feet' in Zulu', encourages low income earners to check out insurance products and purchase them based on certain attributes.?

Zimele endorsed products meet a set standard of requirements, including simple, understandable policy wording available in all 11 official languages, minimum and maximum cover limits and age at entry requirements, permissible exclusions and limitations and maximum monthly age-banded premium rates.

Since 2007, over five million Zimele compliant products have been sold to South Africans.

South African insurance groups who have complied with the standards endorsement initiative have been pleased with the success of these products and are looking at ways to expand their market presence.

It should be noted that Zimele products are not sold through independent financial advisors.

Instead, they are marketed in non-traditional ways such as through church organizations, retail stores and other distribution channels.