South African life and disability insurance shortfall remains critical

The average South African is now underinsured by R600 000 in the event of death and by R900 000 in the event of disability.
The 2010 Life and Disability Insurance Gap Study reveals the frightening fact that South Africa's 12.4 million income earners between the ages of 16 and 65 are underinsured by R18.4 trillion.
The study found that the death insurance gap is R7.3 trillion and the disability insurance gap is R11.1 trillion.
Although every effort has been made to change consumer behaviour, the effect of this has been to lower lapse and surrender rates rather than increase insurance cover. This is a positive sign.
Unfortunately the global financial crisis, the recession and attendant job losses and strain on consumer discretionary spending has had a negative impact on efforts to increase life and disability insurance cover recovery.
Not only does this have implications for individual consumers, and their families who stand exposed and vulnerable to underinsurance on a massive scale, but national savings is also affected.
Insurance savings form a large proportion of the money that is invested on behalf of consumers in the future of the country itself.
At the root of the problem lies the perception that life insurance and disability insurance are expendables that can be sacrificed to consumer spending in other areas such as entertainment, luxury goods and lifestyle products.
Consumer education is seen as critical in addressing these misperceptions and lack of insight into the implications of underinsurance.
Into this arena comes a new website  designed to position online products and services, making household insurance quotes, business insurance quotes, life insurance quotes and car insurance quotes easy to obtain, while also providing in depth consumer education on all the above.
Supported by ITInews - Insurance Times and Investments, Insurance Quotes South Africa seeks to provide a balanced view, alerting consumers to the pitfalls and features of insurance, and answering many consumer related questions through the Insurance Quote Blog.