Abstract
Despite the existence of a robust legal framework such as the Financial Sector Regulation Act, Insurance Act, Policyholder Protection Rules, and the proposed Conduct of Financial Institutions (CoFI) Bill, low-income households face significant barriers to accessing non-life insurance. For example, breadwinners must make the choice between food on the table or insuring property that may or may not suffer harm. For many underserved communities, this is an easy decision, to put food on the table. When risk materialises, these households are left without risk protection, deepening the vulnerability to poverty and inequality. To address this gap, microinsurance emerges as vital solution. Microinsurance is a type of insurance product which caters to lower income population by providing affordable non-life insurance products. However, challenges remain such as affordability constraints, limited distribution channels, and low levels of financial literacy. This dissertation adopts a literature-based methodology, incorporating both primary and secondary sources, and includes a comparative analysis of India’s microinsurance regulatory framework. India’s inclusive approach, characterised by capped premiums and diversified distribution agents, offers valuable lessons for South Africa. This dissertation concludes that while South Africa has made commendable strides in recognising and formalising microinsurance products, further regulatory reforms are necessary to enhance financial inclusion, education and broaden access to these products. Ultimately, microinsurance is positioned as a catalyst for promoting access to non-life insurance, reducing inequalities, and fostering a more inclusive non-life insurance landscape in South Africa.