Latest Publications

Credit life insurance in South Africa: the customer's perspective

Credit life insurance may be the first type of insurance that many low-income consumers encounter. As such, it can offer an opportunity for introducing consumers to the concept of insurance and, if it offers value to them, can lead to uptake of other insurance products in future– a phenomenon that can be termed positive market discovery. However, credit life insurance can also lead to consumer protection concerns if consumers are not aware that they have insurance, or if the fact that a captive market is created leads to exorbitant pricing. Such practices may lead to disillusioned customers, thereby disincentivising uptake of other insurance products.

Why retailers?

Retailers in South Africa provide a range of financial services that include credit, insurance, money transfer and savings products. Cenfri has undertaken a number of studies that have reviewed the products and partnerships which allowed for the delivery of these products, as well as the business case for retailers to do so (click here, here or here for more information). These studies highlighted the need to understand in more detail what motivates consumers to access financial services through a retailer?

Making Access Possible (MAP) Myanmar

Cenfri presented the key findings and recommendations of Making Access Possible (MAP) Myanmar at the 2nd National Conference on Financial Inclusion entitled Towards a Financial Inclusion Roadmap in Nay Pyi Taw. MAP Myanmar forms part of a global partnership between the United Nations Capital Development Fund (UNCDF), Cenfri and the FinMark Trust and was funded locally by the Livelihoods for Food Security Trust (LIFT) and UNCDF. The study was requested by the Ministry of Finance and Revenue, approved by the President of the Union of Myanmar and overseen by an intergovernmental steering committee chaired by the Managing Director of the Myanmar Microfinance Business Supervisory Enterprise (MMSE).

Regaining momentum? Update on microinsurance in South Africa

In South Africa, the proposal for a microinsurance regulatory framework has been on the table since 2008, when National Treasury released a Discussion Paper on the Future of Microinsurance Regulation. The Discussion Paper initiated a consultative process with the National Treasury, Financial Services Board and the insurance industry – supported by FinMark Trust and Cenfri – that was finalized in 2011 with the release of the South Africa Microinsurance Regulatory Framework. The 2011 policy document entrenched and refined the proposed regulatory framework that was envisaged to be incorporated into a forthcoming Microinsurance Act and subordinate legislation. However, in 2013 the decision was made to no longer pursue standalone microinsurance legislation, but rather to incorporate microinsurance provisions under the new financial sector regulatory structure to be implemented in South Africa under the so-called “Twin Peaks” framework, with a number of interim measures to start giving effect to microinsurance from 2014 onwards.

 
Latest Publications

Credit life insurance in South Africa: the customer's perspective

Credit life insurance may be the first type of insurance that many low-income consumers encounter. As such, it can offer an opportunity for introducing consumers to the concept of insurance and, if it offers value to them, can lead to uptake of other insurance products in future– a phenomenon that can be termed positive market discovery. However, credit life insurance can also lead to consumer protection concerns if consumers are not aware that they have insurance, or if the fact that a captive market is created leads to exorbitant pricing. Such practices may lead to disillusioned customers, thereby disincentivising uptake of other insurance products.

Why retailers?

Retailers in South Africa provide a range of financial services that include credit, insurance, money transfer and savings products. Cenfri has undertaken a number of studies that have reviewed the products and partnerships which allowed for the delivery of these products, as well as the business case for retailers to do so (click here, here or here for more information). These studies highlighted the need to understand in more detail what motivates consumers to access financial services through a retailer?

Making Access Possible (MAP) Myanmar

Cenfri presented the key findings and recommendations of Making Access Possible (MAP) Myanmar at the 2nd National Conference on Financial Inclusion entitled Towards a Financial Inclusion Roadmap in Nay Pyi Taw. MAP Myanmar forms part of a global partnership between the United Nations Capital Development Fund (UNCDF), Cenfri and the FinMark Trust and was funded locally by the Livelihoods for Food Security Trust (LIFT) and UNCDF. The study was requested by the Ministry of Finance and Revenue, approved by the President of the Union of Myanmar and overseen by an intergovernmental steering committee chaired by the Managing Director of the Myanmar Microfinance Business Supervisory Enterprise (MMSE).

Regaining momentum? Update on microinsurance in South Africa

In South Africa, the proposal for a microinsurance regulatory framework has been on the table since 2008, when National Treasury released a Discussion Paper on the Future of Microinsurance Regulation. The Discussion Paper initiated a consultative process with the National Treasury, Financial Services Board and the insurance industry – supported by FinMark Trust and Cenfri – that was finalized in 2011 with the release of the South Africa Microinsurance Regulatory Framework. The 2011 policy document entrenched and refined the proposed regulatory framework that was envisaged to be incorporated into a forthcoming Microinsurance Act and subordinate legislation. However, in 2013 the decision was made to no longer pursue standalone microinsurance legislation, but rather to incorporate microinsurance provisions under the new financial sector regulatory structure to be implemented in South Africa under the so-called “Twin Peaks” framework, with a number of interim measures to start giving effect to microinsurance from 2014 onwards.

 

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