Abstract
The high rate of uninsured motorists in South Africa poses significant problems for the
public, insurance companies, insurance regulators, and the government. This
widespread issue has immense financial and social consequences due to the high
incidence of road accidents. The purpose of the study was to establish a framework
to contribute to addressing the problem of low insurance uptake. The study assessed
the legal framework for a conducive motor insurance environment and technologybased
solutions to overcome barriers to insurance take-up. The specific objectives are
to determine the extent of the uninsured motorists' problem, identify factors
contributing to the problem, determine an effective legal and regulatory framework,
and assess technology-based solutions.
The research method employed a mixed methods approach, with a sequential
explanatory research design. The initial quantitative stage examined data from a
secondary database of 21,470 motorists. This was followed by conducting semistructured
interviews, which were later analysed using content analysis techniques.
The quantitative and qualitative findings were integrated at the interpretation stage of
the research. The findings revealed that 74.6% of motorists were uninsured, leading
to financial vulnerabilities in accidents. Factors including personal, socio-cultural, riskrelated,
economic, and technological factors contribute to this problem. To attract
these motorists, insurers should adopt a customer-centric approach, prioritize
transparency, offer flexible payment plans, and provide tailored products. Digital
technologies were identified as a key solution, offering flexibility, choice, and ease of
access. The study concluded that addressing the issue of uninsured motorists in South
Africa requires a multifaceted approach involving legal changes, government
intervention, and improvements in the insurance industry.
Recommendations include a framework for insurers in three phases including getting
the basics right, enhancing the experience and being a trusted partner in transforming
motorists’ risk management strategies (BERM – basics, experience and risk
management framework), and on the government’s part, implementing mandatory
third-party insurance (MTPI), which includes repurposing the Road Accident Fund,
creating a centralized insurance database, and establishing minimum insurance
coverage requirements.
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The research has significant implications for markets that are confronted with similar
issues concerning uninsured motorists. It specifically addresses South Africa's distinct
challenges, such as reducing dependence on government funding for motor liability,
expanding the insurance market, promoting responsible driver behaviour, and
ultimately reducing road fatalities.
Keywords: Insurance, mobile apps, regulatory frameworks, South Africa, technology,
telematics, uninsured motorists