Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: This paper proposes broad guidelines that the formal insurance companies in South
Africa should follow when entering the low-income market, specifically LSM 1-5. The guidelines follow on a SWOT analysis of the formal insurance providers present in the informal market. After discussing the risks that the poor face and the riskmitigating
strategies that they employ, we identify the opportunities and threats of this
market segment. The strengths and weaknesses of the formal institutions are
deduced from observations of how the informal institutions supply the credit, savings
on which the poor rely. Important lessons and principles that
are conducive to servicing the needs of the poor are discussed. To break into this market requires new distribution channels, new products and
premium collection methods. The guidelines therefore suggest that strategic alliances
be established with informal institutions to enable leverage of their networks and
knowledge and to streamline the process. New products designed should incorporate
the social features of the informal institutions concerned. New technology, such as
prepaid vouchers and vending machines, should be investigated as possible ways of
collecting premiums through bank accounts. / AFRIKAANSE OPSOMMING: Hierdie dokument stel voor 'n wye gids wat die formele sektor van versekeraars in Suid-Afrika moet volg binne die lae-inkomste mark, spesifiek LSM 1-5. Hierdie riglyne is baseer op 'n SWOT-analise van formele versekerings verskaffers binne die informele mark. Eers moet die risiko en strategie wat die lae-inkomste sektor volg
bespreek word, daarna moet die geleenthede en bedreigings van hierdie deel van
die mark ge'identifiseer word. Die sterk- en swakhede van die formele en informele
instellings moet waargeneem word, spesifiek hoe hulle krediet en versekerings
produkte verskaf. 'n Baie belangrike aspek hiervan is hoe dienstig dit is vir die lae inkomste groepe.
Om binne hierdie mark te breek, benodig dit nuwe verspreidings kanale, nuwe
produkte en premium kollektiewe metodes. Hierdie riglyne benodig 'n strategiese
bondgenootskap met informele instansies sodat dit die kennis en netwerke kan
versterk in 'n vaartbelynde proses. Nuwe produkte wat ontwerp word moet sosiale
aspekte van die informele sektor in ag neem. Nuwe tegnologie soos vooruitbetaalde kwitansie en muntautomaat masjiene moet ondersoek word as moontlike maniere
om premies te kollekteer deur bank rekenings.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50606 |
| Date | 03 1900 |
| Creators | Khabele, Poloko |
| Contributors | Biekpe, N., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 70 p. : ill. |
| Rights | Stellenbosch University |
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