South Africans are facing a combined insurance shortfall of R28.8 trillion. The 2016 life and disability insurance gap study conducted on behalf of the Association for Savings and Investment South Africa (ASISA) by True South Actuaries and Consultants, highlights concerning statistics.
The protection gap is the difference between the protection needed and the protection in-place to maintain living standards following an unfortunate event. The amount of insurance cover needed to close the gap between the total existing life and disability insurance cover in place currently, is not enough. What’s concerning is that since 2012 the insurance gap increased by R4.8 trillion.