Taking Short Term Insurance to the Middle Class in South Africa
Who is the middle class in South Africa? Defined by an article produced by Econ3x3, in a published article on the web, the middle class in South Africa is about, 4.2 million households, earning R4950 and below?
With the rising food prices. Water and Electricity accounts, the “middle class” can barely afford medical aid.
We have an enormous number of uninsured vehicles in this country, and a fair guestimate will be that a vast number of them is in this group.
This leaves them open to a huge third-party claim should they be involved in a motor car accident and found to be the guilty party. Secondly, they might not be able to afford Short Term Insurance, leaving them exposed to theft, fire, storms, water damage, and standing to lose all their possessions.
The Insurance Market in South Africa does not cater for this segment, it comes down to supply and demand.
This group is just as entitled as the wealthy to be put in the same position as they were in before an unfortunate incident, or at least in a position to continue making a living.