Workers Life’s Focus on Value-Driven Products

In a detailed conversation with Cover Magazine, Jaco Mostert, Group CEO of Workers Life, provided insights into the insurance industry’s challenges in 2024, alongside Workers Life's strategy for growth and expanding its market share. He discussed the global insurance gap, estimating it at $1.8 trillion, largely caused by high inflation, inadequate distribution, and lack of access to necessary coverage. While acknowledging the tough conditions of 2024, Jaco believes the easing of inflation will present opportunities for growth in 2025. Workers Life, a company with a history dating back to 1996, has been focusing on improving its distribution capabilities and accessibility.

Jaco emphasized that Workers Life targets the middle to lower-income segments in South Africa and Africa, areas often underserved by larger insurance companies. He explained that while technology plays a significant role in expanding reach and accessibility, face-to-face interactions remain crucial for client relationships in these markets. Workers Life is focused on investing in its people, leveraging partnerships, and refining distribution strategies to ensure it is accessible and affordable for clients.

One of the key challenges discussed was the need for improved financial literacy, as many South Africans remain underinsured and lack understanding of what they are purchasing. Jaco expressed concern about the prevalence of multiple small life policies and stressed the need to remove barriers to access, such as medical underwriting, for individuals in lower-income groups. Through targeted marketing and education, Workers Life hopes to provide products that offer better value and security, ensuring that a wider segment of the population can save and protect their futures effectively.

Key Points from the Discussion:

• Global Insurance Gap: There is a $1.8 trillion global shortfall in insurance coverage, driven by inflation, poor distribution, and limited access to coverage, especially for middle and lower-income populations.

• Inflation's Impact: The insurance industry has faced challenges due to inflation in 2024, but Jaco sees the potential for growth as inflation begins to decrease in 2025.

• Accessibility and Affordability: Workers Life is focused on making insurance products more accessible and affordable for underserved markets, particularly in South Africa and Africa.

• Technology and Distribution: The company plans to leverage technology and expand its distribution capabilities, while still emphasizing the importance of face-to-face interaction in building relationships with clients.

• Financial Literacy: There is a need for better financial literacy to empower consumers to understand and make informed decisions about their insurance needs.

• Removing Barriers to Entry: Workers Life is working on reducing barriers, such as medical underwriting, to make insurance accessible for people in lower-income brackets.

• Targeting Middle and Lower-Income Segments: The company is particularly focused on providing products for the underserved middle and lower-income groups, aiming to offer value-driven solutions.