Insurance industry plays increasing role in immigration considerations
One of the major characteristics of modern society is that it is not uncommon for business men and women to leave their countries of birth in order to work in international markets. South Africa saw a massive wave of citizens emigrating to international markets after the 1994 elections with a number of factors playing a role in the decision.
According to a survey commissioned by Zurich, the ebb and flow of the global economy has had a major influence on people’s decisions. Job security and economic stability were also decisions which featured prominently. However, a consideration which is playing the most crucial role in making a decision to emigrate is access to reliable insurance coverage in the target country.
Overriding factors?
The availability of reliable health insurance is a more significant consideration than schools or pensions when people are making this important decision. According to the survey, North America (31%) is rated as the most appealing destination to start a new life, closely followed by Austria, Germany and Switzerland (29%) as well as Australia and New Zealand (28%).
South Africa has increasingly become a popular destination for African immigrants seeking to leave their country for a better life here. Access to healthcare has been a major drawcard, and the adoption of the National Health Insurance programme will only increase this as it promises greater access to quality healthcare for a large segment of the population.
There has also been significant demand for South African designed insurance products to be launched into Africa with Allianz, Old Mutual and Liberty all setting aside significant capital to roll out these programmes.
Addressing the media and shareholders at the end of last year Andreas Berger, Member of the Board of Management at Allainz, said that 2013 was a challenging year for the company, but that 2014 will be a significant year for the company in terms of executing strategic objectives established at the beginning of 2013 with regards to the company’s African expansion.
Reliable insurance coverage
The survey reports that the most important considerations to underpin a decision to emigrate remain job security (43%), a low crime rate (39%) and political stability (38%). But insurance also plays an important role. For 22% of respondents, reliable insurance coverage for illnesses and disability is crucial. The survey also points out that 20% opt for safe pensions, compared with only 14% for schools.
This may be higher in Africa which presents many more unique challenges than European countries. This is another reason why many African immigrants would flock to South Africa. The South African financial services industry has a long history and is traditionally one of the continents’ oldest and strongest industries. This will only be made stronger if the trend of mergers and acquisitions continue which would make smaller companies more competitive.
Employment opportunities as important motivator
The condition of the economy and particularly employment opportunities are at the forefront of motivations when considering emigration. The survey points out that 49% select either better job opportunities, or unemployment at home as key factors in their deliberations. This trend is particularly pronounced in Southern Europe, with over 70% of Spanish and Portuguese respondents pre-occupied by employment and thoughts of unemployment.
This is a serious consideration in South Africa. Although the country does offer more job opportunities than neighbouring countries such as Zimbabwe, Botswana, and Namibia, unemployment is at a staggering 45% with Government facing an uphill challenge to reduce this number.
Editor’s Thoughts
While the strength of the financial services industry always played an important role in making a decision to emigrate to another country, current economic conditions mean that this role will be increased as risk factors continue to play an increasing role in global economic outlooks. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
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