Category: Insurance News / Short Term Insurance / SAIA / February 2006

Insurance for the emerging market 

The South African Insurance Association (SAIA) would be launching its Mzansi insurance product for shack dwellers to match the Mzansi bank account within the next few months, said Leila Moonda, a spokesperson for the association. 

She explained that the product had already been “designed” and was awaiting approval from SAIA, the Financial Services Board and the competition authorities.

“We need competition approval,” she added, because the product to be launched would be collective and the competition authorities would have to be satisfied that there was no harmful collusive behaviour among insurers. Collusive behaviour refers to an agreement to fix a price for a product or service. 

The new product will cover the household possessions of those earning less than R3 000 a month and premiums will range from less than R25 a month to R150 a month. It will cover not only the contents but also the structure of the dwellings, including shacks. 

Moonda added that the Mzansi insurance would conform to the requirements of the

financial services char ter signed by the banks and insurance companies in 2002. These include affordability and accessibility. 

Santam will be launching its product designed for the emerging market in March.

Source:  Santam e-focus February 2006

Insurance Newsletter