Access to insurance products in Namibia. Prepared for FinMark Trust. March Basic product description

Transcription

1 Access insurance s in Namibia Prepared f FinMark Trust March 2007 Funeral insurance description Product name: Funeral Care (offered by Old Mutual) Three categies: individual, family (incl. spo and unlimed nunmber of children), and parent (where policy holder takes cover f one parent) this analysis is based on categy f family Minimum cover of N$5,000 Payout usually whin 48 hours sooner Minimum premium of N$50 per month standard cover ed via tradional methods (broker and agent) as well as direct marketing s paid monthly Deb der sp der Proof of identy Proof of address Banked proof of income Minimum and maximum age at entry is 16 and 59 respectively 2 1

2 Namibia frontier: funeral insurance based on hohold heads only (scaled up approximation) 154,791 s s No No 62,127 20,007 redistriion 474, ,568 Can t affd Can t affd 138, , , ,112 salarywage salarywage and over 60 and over 27, ,194 82,134 50,544 Potential rs Potential rs 14,742 35,802 50,544 Based on a paper entled The Access Frontier as an Approach and Tool in Making s Wk f Po by David Pteous Approximation: CIA Wld Fact Book: Estimated adult population (15+) = 1,263,283; represented by 1,200 weighted respondents in survey 3 Namibia frontier: funeral insurance based on hohold heads only (percentage of tal market) 33% s s No No 13% 4% redistriion 100% 57% Can t affd Can t affd 29% 28% 44% 67% 60 and over 60 and over salarywage salarywage 1% 6% 22% 17% 11% Potential rs Potential rs 3% 8% 11% Based on a paper entled The Access Frontier as an Approach and Tool in Making s Wk f Po by David Pteous 4 2

3 The frontier f funeral insurance Derived from Finscope Namibia 2004 adults (16+), N = 1200 This is considered a hohold analysis based on hohold heads only s s Answered yes having any of se s now insurance company funeral policy, burialfuneral policy wh registered instution, employer burialfuneral scheme, funeral cover through church trade union Respondent hohold gone whout enough food eat always many times in past 12 months No No Associate statement y o few branches Too far from where I live, wk usually go wh insurers; AND no phone, fax, , internet; AND can be reached by postal mail Fmal education level did reach high school AND no experience wh any fmal* risk insurance s only (excluding savings s sold by insurance industry such as endowments, pensions, education policies, etc). Also if respondents indicated that y do know how go about buying funeral cover (reasons no funeral burial cover) * Such as from an insurance company, registered ganisation, church, employer, etc. Excludes burial societies, funeral parlours, etc. 5 The frontier f funeral insurance Can t affd Can t affd Based on assumption that 5% of hohold income can be spent on Minimum tal monthly income set at N$1 000 (min. premium at Old Mutual is N$50) Those who refd answer were grouped wh N$1 000 me income bracket. Those who were uncertain were grouped wh less than N$1 000 income bracket Identification required take out policy 60 and over 60 and over Can take funeral cover if aged 60 me salarywage salarywage Banking details salary reference no. required take out policy (payment via deb sp der only) Respondent hohold gone whout a income Always Many times in past 12 months Respondent answered Don t when asked why no burial funeral cover 6 3

4 The frontier f funeral insurance in Namibia Access frontier f funeral insurance: Hohold heads Current market redistriion 3.1% 32.6% 7.5% 43.7% 13.1% Have now and Don t Have Not o po can 7 Life insurance description Name: Life Plan (offered by Old Mutual) Whole life Minimum premium of N$100 per month May require a medical rept (depends on sum assured) Exclusions: suicide and self-inflicted injuries ed via agents and brokers, no direct marketing s paid monthly Deb der sp der Proof of identy Proof of address Banked proof of income Minimum and maximum age at entry is 16 and 64 respectively 8 4

5 Namibia frontier: life insurance (scaled up approximation) 174,798 s s No No 153,738 52,650 redistriion 1,263, ,926 Can t affd Can t affd 255, , ,188 1,088, , and over 65 and over 25,272 no no salarywage salarywage 421,200 96,876 Potential rs Potential rs 245,349 Based on a paper entled The Access Frontier as an Approach and Tool in Making s Wk f Po by David Pteous Approximation: CIA Wld Fact Book: Estimated adult population (15+) = 1,263,283; represented by 1,200 weighted respondents in survey 96,876 9 Namibia frontier: life insurance (percentage of tal market) 14% s s No No 12% 4% redistriion 100% 79% Can t affd Can t affd 20% 63% 66% 86% 9% 65 and over 65 and over 2% salarywage salarywage 33% Based on a paper entled The Access Frontier as an Approach and Tool in Making s Wk f Po by David Pteous 8% Potential rs Potential rs 19% 8% 10 5

6 The frontier f life insurance Derived from Finscope Namibia 2004 adults (16+), N = 1200 s s Answered yes having any of following s now life assurance policy, life cover, lump sum in case of death from employer Respondent hohold gone whout enough food eat always many times in past 12 months No No Associate statement y o few branches Too far from where I live, wk usually go wh insurers; AND no phone, fax, , internet; AND can be reached by postal mail Can t affd Can t affd Based on assumption that 5% of personal income can be spent on Minimum tal monthly income set at N$2 000 (Minimum contriion at Old Mutual is N$100) Those who refd answer were grouped wh N$2 000 me income bracket. Those who were uncertain were grouped wh less than N$2 000 income bracket 11 The frontier f life insurance Fmal education level did reach high school AND no experience wh any fmal* risk insurance s only (excluding savings s sold by insurance industry such as endowments, pensions, education policies, etc) Identification required take out policy 65 and over 65 and over Can take life cover aged 65 me salarywage salarywage Banking details salary reference no. required take out policy (payment via deb sp der only) Respondent hohold gone whout a income Always Many times in past 12 months * Such as from an insurance company, registered ganisation, church, employer, etc. Excludes burial societies, funeral parlours, etc. 12 6

7 The frontier f life insurance in Namibia Access frontier f life insurance Current market redistriion 13.8% 7.7% 66.3% 12.2% Have now and Have Not o po can 13 Endowments description Name: Group Schemes Investment Plan (offered by Old Mutual) Minimum term of 10 years Minimum premium of N$75 per month ed via brokers and agents as well as direct marketing s paid monthly Deb der sp der Proof of identy Proof of address Banked proof of income Minimum and maximum age at entry is 16 and 64 respectively 14 7

8 Namibia frontier: endowments (scaled up approximation) 92,664 s s No No 159,003 52,650 redistriion 1,263,600 1,170, ,972 Can t affd Can t affd 247, , , , ,200 salarywage salarywage 254, ,964 Potential rs Potential rs 197,964 Based on a paper entled The Access Frontier as an Approach and Tool in Making s Wk f Po by David Pteous Approximation: CIA Wld Fact Book: Estimated adult population (15+) = 1,263,283; represented by 1,200 weighted respondents in survey 15 Namibia frontier: endowments (percentage of tal market) 7% s s No No 13% 4% redistriion 100% 93% 77% Can t affd Can t affd 20% 60% 9% 64% 33% salarywage salarywage 20% 16% Potential rs Potential rs 16% Based on a paper entled The Access Frontier as an Approach and Tool in Making s Wk f Po by David Pteous 16 8

9 The frontier f endowments Derived from Finscope Namibia 2004 adults (16+), N = 1200 s s Answered yes having following s now: endowment education policy Respondent hohold gone whout enough food eat always many times in past 12 months No No Associate statement y o few branches Too far from where I live, wk usually go wh insurers; AND no phone, fax, , internet; AND can be reached by postal mail Fmal education level did reach high school AND no experience wh any fmal* insurance s * Such as from an insurance company, registered ganisation, church, employer, etc. Excludes burial societies, funeral parlours, etc. Q30 17 The frontier f endowments Identification required take out policy salarywage salarywage Banking details salary reference no. required take out policy (payment via deb sp der only) Respondent hohold gone whout a income Always Many times in past 12 months Can t affd Can t affd Based on assumption that 5% of personal income can be spent on Minimum tal monthly income set at N$1 500 (Minimum investment premium at Old Mutual is N$75) Those who refd answer were grouped wh N$1 500 me income bracket. Those who were uncertain were grouped wh less than N$1 500 income bracket 18 9

10 The frontier f endowment policies in Namibia Access frontier f endowment policies Current market redistriion 7.3% 15.7% 64.4% 12.6% Have now and Have Not o po can 19 10