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Power imbalance in micro-insurance : why emerging funeral directors face an uphill battle
Journal article   Open access

Power imbalance in micro-insurance : why emerging funeral directors face an uphill battle

Monica Bulelwa Maphela and Eyitayo Francis Adanlawo
SCIENTIFIC CULTURE, (12 5), pp.1531-1541
2026
Handle:
https://hdl.handle.net/10210/520922

Abstract

Emerging Funeral Directors Compliance Challenges Regulatory Oversight Micro-Insurance Sustainability
The Financial Services Conduct Authority (FSCA) plays a critical role in regulating funeral premium underwriting, ensuring consumer protection, financial stability, and market integrity. Emerging funeral directors (EFDs) navigating FSCA compliance is essential to operate ethically and sustainably within the funeral insurance sector. This article aims to explore the FSCA's oversight in underwriting funeral premiums, focusing on licensing requirements, risk assessment frameworks, and consumer safeguards. A qualitative approach was adopted to gain rich contextual insights into the underwriting challenges emerging funeral directors face. Data were collected through focus groups, expert interviews, documents and media analysis. The combination of these methods ensured triangulation of data sources, enhancing the credibility and depth of the findings. Thematic analysis highlights the challenges new entrants face, such as stringent capital, adequacy rules and transparency obligations, while emphasising the FSCA's role in fostering fair competition and preventing mis-selling. The study concludes that emerging funeral directors can build trust, mitigate financial risks, and contribute to a well-regulated funeral insurance market by adhering to FSCA guidelines.
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