BRIDGING THE GAP: THE ROLE OF MICRO-INSURANCE IN A COMPREHENSIVE SOCIALPROTECTION SYSTEM IN SOUTH AFRICA

Letlhokwa George Mpedi Letlhokwa George Mpedi,Daleen Millard Daleen Millard

doi:10.17159/obiter.v31i3.12321

Abstract

Access to social protection interventions, such as social assistance, social insurance and private insurance, in South Africa is limited. For that reason, plugging the holes in the safety net is undoubtedly one of the most pressing challenges facing South Africa in its quest to design a comprehensive social protection system. The point is that vulnerable persons, just like any other persons, have to contend with social risks (for example, death, poor health, invalidity, etcetera). As a result, similarly to all other persons, they require protection against these risks. It is clear that the current social protection interventions (particularly social insurance, social assistance and privateinsurance) fail to protect every person in need of such protection adequately in South Africa. Thus, the contribution sets out to investigate the prospects of micro-insurance being used as an instrument to extend social protection coverage to the excluded and marginalized persons in South Africa.

Highlights

There are three major social protection[1] interventions in South Africa, that is, social assistance,[2] social insurance[3] and private insurance.[4]
It is clear that the current social protection interventions fail to protect every person in need of such protection adequately in South Africa
The prospect of private insurance policy lapses is astronomical among the category of persons – among those who eke a living in the informal sector.[16]