This case study reflects on regulatory developments in the South African microinsurance market intended to better protect lower income consumers of insurance and extracts learning in this regard that can inform other jurisdictions embarking on a similar path. The study provides a snapshot of the existing microinsurance market in South Africa, taking into account the degree of financial inclusion, typical products and which entities provide them, and the regulatory landscape. The study will also explain South Africa’s policymaking process to date, consider the envisaged policy response to protecting microinsurance consumers going forward, and benchmarks the existing and proposed regulation against the consumer protection standards. Lastly, the author concludes by summarising lessons learnt by the National Treasury over the policy making process.
FinMark Trust, Microinsurance Network