Prepaid Insurance Brings Policies to SA’s Unbanked
Millions of South Africans don’t have a bank account. So they have resigned themselves to the fact that they won’t ever be able to have any kind of insurance. Prepaid insurance is the answer.
In Africa, there is the tradition of holding elaborate, pricey funerals. However for someone without insurance, this is out of the question.
Despite high demand, regular insurance companies could not break even within the low-income customer segment. But that was before Hollard Insurance and retail chain, Pep Stores got together to tackle the problem. They came up with the idea of prepaid insurance policies.
Prepaid Insurance – PEP and Hollard Join Ranks to Help the Unbanked
Both Pep and Hollard agree that the people who will benefit the most from ‘off-the-shelf’ insurance policies are those South Africans who have never owned a bank account. In was in 2006 already that the Hollard Group, 
South Africa’s largest privately held insurance company, decided to tap into the large potential low-income market.
To do this they partnered with PEP, a high-volume, low-margin clothing chain with well over 1000 outlets across South Africa. PEP already had a solid customer base and the retail store was able to help make distribution more viable.
Up until recently these consumers could not take out insurance policies. Now, with Hollard’s prepaid insurance packages insurance is within the reach of non-bankers. You buy these in much the same way as you would a cell phone starter package,
Prepaid Insurance – You Buy Insurance Like you buy Clothes
Divisional Managing Director of Hollard Insurance, Mandla Shezi. said that millions of South Africans could not buy insurance. That’s because it required a bank account to allow for a debit order payment. Now, with Hollard and Pep Stores joining ranks, prepaid starter-pack type insurance policies are available. Thousands of people have already taken advantage of this service, and even those who had bank accounts, but who did their shopping at Pep Stores, have shown an interest and have requested debit order payments for convenience.
These insurance policies are activated and distributed just like pre-paid cellphone starter-packs and include a barcoded card containing a unique policy number. To activate the policy and to sort out the payment of the premiums in cash, an insurance card will need to be presented at the regular till points at any of the PEP stores in South Africa.
With ridiculously low premiums, insurance is at last affordable to the millions of South Africans who don’t have bank accounts. Both Hollard and PEP are trusted brands who have managed to remove the hurdles which have barred the way for people to be insured.
Prepaid Insurance – At Last! Uncomplicated Insurance
The people of South Africa want straightforward, easy, cheap, access to financial protection without all those complicated documents. That is exactly what PEP and Hollard have done with these barcoded Insurance Cards. These starter pack insurance packages are specifically designed for people who prefer cash, who like the idea of presenting their barcoded insurance cards at the till and walking away knowing that paying for insurance is as easy as buying a new skirt or a pair of shoes.
With instant activation taking place at the till-point as well as that mandatory 30-day cooling off period during which you can cancel if you wish, its not wonder that was once thought of as a pie-in-the-sky concept has taken off with aplomb.
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All info was correct at time of publishing