Explore the Category
A staggering yet understandable 58% of households across South Africa (SA) are facing high or overwhelming financial stress as the Covid-19 crisis knocks savings and raises debt levels, according to the latest Old Mutual Savings & Investment Monitor (OMSIM).
GlobalData’s revised post-COVID-19 forecasts for South Africa’s insurance industry sees a significant shift towards negative growth in both the life and non-life segments.
The global pandemic and subsequent national lockdown have exposed fault lines in South Africa’s retirement funding industry. Some argue that pension fund regulations should be changed to allow local savers to dip into their retirement savings during times of financial hardship; but the stark reality is that few retirement fund members have enough money saved to make a meaningful difference. Viresh Maharaj, Managing Executive at Sanlam Corporate Distribution, hinted that anyone pinning their hopes on retirement savings as a financial crutch through the pandemic-induced crisis were in for a shock. His comments were made during a media presentation, held the day before the release of the 2020 Sanlam Benchmark survey.
COVID-19 has highlighted that the majority of businesses had no insurance protection against pandemics, even if they held a business interruption policy, which has created an opportunity in the market, according to GlobalData, a leading data and analytics company.
What do you believe will be the biggest challenge when the COFI framework is finally implemented?