A Review of Factors Influencing the Inclusive Insurance Segment - The Case of South Africa

The low-income earners are generally more prone to the impact of unplanned natural adverse shocks and yet the risk-pooling and self-insurance strategies are not adequate. The paper reviews factors influencing inclusive insurance penetration and development in the challenging low-income segment of South Africa. The main factors identified in the survey are: microinsurance regulatory framework, distribution channels, savings, trust and consumer financial education. Through a review of literature, the author advances the hypothesis that inclusive insurance development is more likely to occur where there is growing demand for inclusive cover. Finally, the author suggests some possible ways for mobilizing the development of inclusive insurance.