A recent report indicates a surge in crime incidents in the country, inevitably leading to a rise in insurance claims.
The start of the year in South Africa is often characterized by individuals reassessing their insurance policies, investments, and plans. A recent report indicates a surge in crime incidents in the country, inevitably leading to a rise in insurance claims. This period of reassessment is significantly marked by claims related to weather events or damage caused by load-shedding, according to Mishaya Chettiar, the Executive Head at Everything.Insure.
Insurance: A ‘Grudge Purchase’
Insurance, although frequently seen as a ‘grudge purchase’, is of critical importance for consumers. The need for individuals to be adequately covered in case of a claim necessitates its existence. Mishaya Chettiar emphasizes this point, noting that yearly updates to insurance policies are essential to ensure coverage in all eventualities. This practice guarantees that insurance holders are not left stranded when unforeseen circumstances arise.
Uganda’s Community-Based Health Insurance
In a related development, a novel non-provider based Community Based Health Insurance (CBHI) scheme in Uganda, called Munno mubulwadde, has been gaining attention. Predominantly comprising members from the informal sector in rural central Uganda, this scheme offers protection to members from catastrophic health expenditure while ensuring better quality health care at private providers.
Challenges and Prospects of CBHI
Despite its benefits, the CBHI scheme faces a myriad of challenges, including inconvenient premium payment dates, long distances to insurance contracted private providers, and falling prices of cash crops. These barriers hinder the retention of members in the scheme. However, the study suggests that policy interventions promoting price stability of cash crops could enhance member retention. Such schemes could be a valuable funding pathway for realizing Universal Health Coverage (UHC) in Uganda and other low-income settings. The CBHI scheme, therefore, represents a beacon of hope in these regions.
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