Posted: 04 Oct 2021
In contrast to the South African economy grappling with low growth in general, the local funeral industry is expected to grow by 12% year on year until 2020. What makes this industry so resilient in a challenging economic climate?
The answer is thought to be two-fold: Urbanisation and a formalising economy. Firstly, as a large part of the population is lured to the city in search of opportunities, they move away from informal burial societies in rural areas and in search of funeral solutions in their new environment. Urban dwellers also tend to adopt credit activities more readily as they move into the formal economy, which opens them up to service providers.
Secondly, with group funeral insurance schemes such as church, trade union and employer benefits, the population is increasingly exposed to funeral insurance as part of a package. Individuals who might be sceptical of insurance products tend to adopt group schemes and benefits more readily as a trusted product.
In this vibrant industry operators offering Funeral Insurance can look forward to increasing growth for the foreseeable future; if underwritten by a trusted service provider.