Microinsurance in South Africa is regarded as the next big thing, however there is still a lot to be learned about this growing area of insurance and how small businesses and their employees may benefit.
Traditionally the microinsurance sector offered only funeral cover. However, since the Insurance Act of 2017 became effective on 1 July 2018, it now offers more options. On a practical level, microinsurance now offers life insurance, credit life insurance, risk insurance and funeral cover. In addition, non-life insurance categories of motor insurance, property insurance, legal expenses cover as well as accident and health insurance are available.
However, SMEs run the risk of wasting money if they include these covers as employee benefits without doing their due diligence.
|