The time is ripe for Afro-centric insurance products
- Herman Schoeman, MD of Guardrisk

Mention the emerging market - in the context of insurance - and everyone thinks about Mzansi type products. But what of the emerging middle class, which makes up an enormous sector of the market, and that's currently largely ignored?

There are increasing numbers of individuals who are steadily climbing the Living Standards Measurements? (LSM) ladder and acquiring all the accessories of their newfound financial status along the way. It's easy to assume that these individuals will simply slot into the current market, making use of the traditional insurance products available to insure their possessions. But, let's not forget, that these products have been created within a Western context. Is it not time for the market to create sophisticated insurance products that take note of cultural needs and diversity - in short, an Afro-centric financial services offering that appeals directly to the ever growing emerging middle class?

This sector of the market presents some interesting challenges. There is no doubt that there is a definite need to shift from conventional product offerings to products that more adequately fulfill the needs of this diverse market. By creating new products - that recognize cultural diversity - interest and demand can be stimulated by the insurance industry to sell this essential cover to this target market.

This market - albeit more sophisticated than the LSM 1 - 5 market - also needs to be serviced differently. More personal interaction by individuals who understand the needs of this market segment and have the appropriate tools to service it, is called for.

Generally speaking, the insurance industry has been slow in responding to this new sector of the market. There are many opportunities for large retail groups and underwriting managers - particularly those already operating in the Black market - to increase penetration in this market through the use of alternative risk transfer (ART) vehicles; not only to create Afro-centric product offerings, but also to capitalize on the well-established non-traditional distribution channels and strong cultural brands.

There can be no doubt that the emerging middle class holds a wealth of potential for insurers - who are prepared to move out of their comfort zones - to create offerings that acknowledge the growing financial intelligence of this untapped market.

For further information please contact:
Herman Schoeman, MD of Guardrisk
Telephone: +27 11 669-1001

Issued by:
Melanie Davis, PR@Work
Telephone: +27 11 615-3309 / +27 83 225 7450