An emerging market

More, and also younger, women are buying insurance these days, a clear reflection of the changing role and status of women. It is also an opportunity for insurers and brokers to tap into this emerging market.

The role of women has changed over the years. They are not only mothers and caretakers, but they also comprise over 40% of the workforce. This means that women have to add value at work and at home.

Another factor that plays a huge role in forcing women to think differently about financial matters is divorce. It is a fact that a third of marriages in South Africa end in divorce and half of women over 65 are either widowed, or divorced.

Something that goes hand in hand with these changing 'trends' is the fact that women also suffer serious diseases earlier and more frequently than before. The average age for a dread disease claim for woman with Sanlam Life currently lies between 40 and 45.

New approach for women

It now has become vital for women to protect their family income stream. In the past they have mostly relied on men to make financial decisions and in the case of death, disability, retirement or divorce, this could have had disastrous consequences for them and their families. As a result of women's changing circumstances this has changed and more – and also younger – women have started to buy insurance.

Currently there are 7% more women assureds for disability benefits, and 7% more for dread disease, on Sanlam Life's books than in 2002. The average inception age for both disability and dread disease still ranges between 26 and 35, but in 2002 only 10% of the total for women fell in the 16 to 25-age group, while this has almost doubled to 19% currently.

Brokers play a role

With so many responsibilities, many women must often rely on a broker to assist them in making the right choices. A broker should suggest a Dread Disease cover that bases a claim on the diagnosis of a disease, and not on the degree of permanent damage or impairment sustained.

For regular Occupation Disability cover definitions, brokers should ensure that the benefit provides against the total and permanent inability to fulfill unique occupational demands immediately before disability.

Brokers should also assist in ensuring that the risk profile is determined on application for the policy, and that the insurer continues to carry the risk of future changes to the risk profile. If the client's occupation, income, part-time activities or smoking habits change in the future, the benefits, premiums, terms and conditions must continue unchanged.

The fine print

Brokers need to make it easy for the client to read and understand the fine print and all the product details, especially where there are upfront discounts based on continued good health, or low claim rates, or the participation in wellness programs. Clients need to understand that they may be faced with additional premium increases later in life and the relevant product provider may only be passing the inevitable risk of deteriorating health back to the client.

Making a difference

Sound financial advice from a qualified and licensed financial adviser is critical for today's women, who carry many responsibilities and huge daily demands on their time and energy. Going the extra mile to insure the future of the mothers of our nation will also open a lucrative new market for brokers who care.