A funeral policy for Africa

An inspired idea has led to the creation of a truly unique African funeral policy that addresses the customs and traditions of the African people, while providing brokers with a novel way to grow their books.

In Africa, many customs and the concept of wealth are linked to cattle – a reality that has been has been overlooked by financial institutions. But a new funeral benefit concept launched last year by Kanhym Life has taken a truly unique approach to honouring African traditions.

Cattle, not money, is wealth

iNkomo, which means cattle (singular) in Zulu, is considered to be of greater value than money in African culture and is used on many special occasions, particularly funerals.

However, with rapid urbanisation, it is becoming increasingly difficult for family members to find suitable cattle at short notice, while there are many difficulties and risks surrounding the health, quality, pricing and delivery of the cattle.

A truly African solution

The iNkomo Provider is a cattle funeral benefit. Raymond Shaw, a broker, and Colin Meulen, an actuary, have joined up with Kanhym Estates to form the company Kanhym Life.

The iNkomo Provider offers products which address these traditional values. It is a funeral policy where the benifit provided is a head of cattle- the iNkomo.

The benifit is underwritten by those registerd insurers that have contracts with Kanhym Life for the provision of cattle.Reinsurance backing for the products is provided by Munich Reinsurance Company of Africa Limited.

Cattle deliveries

Once the claim is approved, claimants may choose iNkomo at a Kanhym Kraal, currently in Middleburg and Vereeniging. Claimants can collect animals with a bakkie or trailer with sides and claim R1 000 for providing their own transport. Alternatively, Kanhym will deliver to cattle to any South African address on a numbered road, providing reasonable access for a 4x2 vehicle.

The stock from Kanhym Feedlots comprises animals under 24 months old, weighing between 400 and 430kg. The prime beef is guaranteed healthy.

If it is inappropriate for the benefits to be paid out as a live animal, or if the claim is reported after the event, an amount equal to the value of the iNkomo, approximately R7 000 in current terms, will be paid out in cash within 48 hours of claim approval.

Benefits for brokers

Brokers can certainly benefit from adding this product to their offering. The average uptake has been around 70% and it offers a unique opportunity to upgrade existing funeral policies and access the traditional market with a truly relevant and appropriate product.

Benefits for life assurers

The iNkomo provider is also available as an 'add on benefit' which can be added to any existing funeral policy to increase the premium income and attract a wider market. Kanhym Life is presently negotiating with several life companies who want to add this benefit to existing policies.