Insurance for SMEs soon
BIG NEED: INFORMAL BUSINESSES CAN RECOVER FASTER FROM PROTESTS AND LOOTING
Covering specialised risks like material damage, business interruption, money and goods in transit.
Through intense research, financial services provider Sasria has looked at where insurance cover is needed most in the South African market and its findings reveal that the need for inclusive insurance is becoming increasingly prevalent in the local environment.
In response, the insurer is working on bringing a solution to the small and medium enterprises (SMEs) that are part of the lifeblood of a community, such as spaza shops.
“When their assets get damaged due to protests or are looted, the actions of a few people cause the whole community to suffer,” says Fareedah Benjamin, Sasria’s executive manager for insurance operations.
In such cases, Sasria can assist small business owners to recover their assets at a faster pace, helping the community to get back onto its feet.
“We’re taking the cover we offer for specialised risks (including, among other things, material damage, business interruption, money, goods in transit and motor and construction risk) to SMEs in the uninsured market,” says Benjamin.
“If something happens to these establishments, they are very exposed; if their shops are looted, it will take a long time to recover the damage.”
Benjamin notes that in the past, a limited number of insurance products were on offer to SMEs, especially those operating in an informal environment.
“Additionally, many people believe that insurance is an expense they can’t afford to carry.
“Our traditional products have been very affordable in terms of what we offer. We’re taking the existing product and aligning it to the limit and cover in terms of what the client needs and what we can cover.”
Sasria is adapting its Standard Insurance package to suit individual needs. With spaza shops, for example, the needs are unique.
“Spaza shops don’t operate out of large, commercial shop structures; they are run from garages, containers and rooms.
“In terms of stock, a big retailer with a bookkeeping process determining the value of their stock at a loss should they experience an event at any given time is completely different than an SME located in a township. From how they track their stock changes to what they have.”
Sasria also plans to offer tailored financial guidance in the form of Sasria consumer education to show people how to maximise the benefits they would get from insurance – and why they would need it.
“We’d like to allow for a purchase and administration platform on smartphones. Agents will then have access to these areas and can direct people right to the app to sign up.
“Even before this product becomes available, insurance is more than a need,” says Benjamin.
“We have to protect our assets or it will have a knock-on effect on us as communities, and its people.”
Sasria plans to unveil their specialised insurance for the SME market in April 2020. – Moneyweb