IFC signs new insurance deal with Assupol in South Africa
A new deal has been signed that could make it easier for South Africans with a low income to access insurance services.A new deal has been signed that could make it easier for South Africans with a low income to access insurance services.
The International Finance Corporation (IFC), which is a member of the World Bank Group, has agreed to make an equity investment of up to ZAR 170 million (€16 million) in Assupol Holdings.
It is hoped this will encourage other investors to take an interest in the company, allowing it to develop a new model to help those on lower incomes.
Chief Executive Officer of Assupol Rudi Schmidt said: "In partnership with IFC, Assupol will be able to increase the safety net for those who need it most in South Africa."
IFC Director for Eastern and Southern Africa Jean Philippe Prosper added Assupol already has a "solid reputation" in the insurance sector.
Low-income groups can often be excluded by large insurance providers in Africa, leaving them open to a significant number of risks.
However, the development of microinsurance policies aims to tackle this by delivering affordable premiums, simple products, appropriate cover and easier ways of collecting premiums.