Exploring a South African National Funeral Insurance scheme for equitable and affordable cover

The cost of funerals in South Africa ranks amongst the highest in the world, largely driven by the cultural expectations of dignified funerals. As a result, funeral insurance coverage in South Africa is high, and likely inflates the country’s insurance penetration statistics on a whole, which position the country as having the highest insurance penetration on the continent and among the highest globally. Yet the funeral market is fragmented, pricing is often inequitable as most policies are age-rated, and policyholders often pay disproportionately for overlapping or inadequate cover. Recognising these challenges, the Actuarial Society of South Africa (ASSA) commissioned this research to inform a framework that can serve as a foundation for meaningful discussion around the design, feasibility and implementation of a National Funeral Insurance (NFI) scheme that is affordable, equitable, and administratively efficient.