SA insurers launch policies for poor

JOHANNESBURG – South Africa’s insurance industry launched new measures on Thursday aimed at giving millions of low-income earners access to life insurance, industry body the Life Offices’ Association (LOA) said.

The new measures, named Zemele – Zulu for “to stand on your own feet” – will target an estimated 17,5 million low-income earners who are mostly black. LOA Chief Executive Officer Gerhard Joubert said only 2,1 million low-income earners have life insurance policies.”The aim is to provide at least 22 per cent or 3,8 million low income earners with life insurance over the next eight years,” he added.The new products will ensure a new era of protection for those earning less than 3 000 rand per month, the LOA said.The first products to be offered by life insurers under the Zemele brand will be funeral policies.The introduction of low-income life insurance cover follows the introduction of low-cost Mzansi bank accounts for the poor.A survey released last year found that 1,9 million people have opened a Mzansi account since October 2004.Nampa-ReutersLOA Chief Executive Officer Gerhard Joubert said only 2,1 million low-income earners have life insurance policies.”The aim is to provide at least 22 per cent or 3,8 million low income earners with life insurance over the next eight years,” he added.The new products will ensure a new era of protection for those earning less than 3 000 rand per month, the LOA said.The first products to be offered by life insurers under the Zemele brand will be funeral policies.The introduction of low-income life insurance cover follows the introduction of low-cost Mzansi bank accounts for the poor.A survey released last year found that 1,9 million people have opened a Mzansi account since October 2004.Nampa-Reuters