New regulations aim to protect vulnerable policyholders
AS THE year ends, South African regulators are examining markets that impact millions daily. Funeral insurance, although familiar, has seen serious conduct failures that demand attention and clear reform.
In many black South African communities, a dignified funeral is more than a ritual; it affirms belonging, honours ancestry, and offers dignity in vulnerability. Funeral insurance is embedded as a crucial financial tool that helps families provide respectful burials without incurring debt or facing social stigma.
For decades, burial societies, stokvels, and funeral parlours fulfilled this role responsibly. As funeral cover became commercially attractive, however, the market expanded rapidly. Banks, retailers, mobile operators, call centres, and informal intermediaries rushed in. Funeral insurance became easy to sell and even easier to buy. Oversight struggled to…
