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Saving grace for individuals who do not qualify for traditional household insurance

26 May 2020 Hollard Insure and Lumkani Insurance

As winter is at our doorstep, the most vulnerable South Africans will face yet another crisis. The economic and health disaster of COVID19 will now be compounded further with the trauma and anxiety of the rise in shack fires in informal settlements across South Africa. Rebuilding your home and your life will be that much harder for many South Africans affected by shack fires over the next few months.

How does one bounce-back with little income and no savings? In these challenging times our vulnerable communities cannot afford a disaster like a fire forcing them to reassemble their lives.

COVID19 and the subsequent lockdown has emphasised the need for:
? Vast improvements in home safety and security as our primary shelter
? The need for access to innovative low-cost financial services which can be sustained even in the event of crisis

On 16 May 2020 over 10 homes in Masiphumelele, an informal settlement in Cape Town, were destroyed in a single shack fire. Five of the families involved in this tragedy had low-cost home insurance provided by Lumkani and underwritten by Hollard. The families protected by Lumkani and Hollard will benefit greatly as they can rebuild their homes speedily and ensure a dignified Better Future.

The reality of the families who were not insured is devastating. They are left homeless and will struggle to rebuild their lives in the worst economic time South Africa has seen in a decade.

Lumkani is a social enterprise with the mission to mitigate the loss of life and
property caused by shack fires in South Africa and across the world. The award-winning organisation's approach to shack fires is the first of its kind.

Francois Petousis (Head of Product at Lumkani): “We do this in two ways: by providing risk-reducing innovative hardware solutions, designed specifically for these communities, and by developing and distributing affordable financial products to allow people to rebuild after disaster strikes, breaking the cycles of poverty common in these environments”

Lumkani’s affordable insurance may be the saving grace for individuals who do not qualify for traditional household insurance.

Petousis continues: “We provide access to self-protect, without needing to rely on external actors to fund activities to build resilience of people’s shelters and communities”

Lumkani has been funded to deploy its technology by over 16 different humanitarian and other organisations, worldwide. This is a testament of the positive impact of its detection systems and the immense need associated with the challenge of fires in informal settlements across the world.

Quick Polls

QUESTION

The second draft amendments to Regulation 28 will allow retirement funds to allocate up to 45% of their assets to SA infrastructure, with a further 10% for rest of Africa; but the equity & offshore caps remain unchanged. What are your thoughts on the proposal?

ANSWER

Infrastructure? You mean cash returns with higher risk!?!
Infrastructure cap is way too high
Offshore limit still needs to be raised
Who cares… Reg 28 does not apply to discretionary savings
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