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Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework
Mini Dissertation (LLM (Insurance Law and Governance))--University of Pretoria, 2022.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2023
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| _version_ | 1867613555838156800 |
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| access_status_str | Open Access |
| author2 | Grove, N.J. |
| author_browse | Grove, N.J. |
| author_facet | Grove, N.J. |
| collection | Thesis |
| dc_rights_str_mv | © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Mini Dissertation (LLM (Insurance Law and Governance))--University of Pretoria, 2022. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/89547 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:38:00.699Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/89547 Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework Grove, N.J. mapulesetlaleleng@gmail.com Setlaleleng, Mapule UCTD Insurance Index-based insurance Basis risk Derivatives Indemnification Insurance Legislative Framework Mini Dissertation (LLM (Insurance Law and Governance))--University of Pretoria, 2022. The financial sector has seen many innovations in financial technology (fintech) and the insurance industry has not been immune to innovation. Fintech promotes competition and innovation, allows for lower transaction costs, and increases access to financial services. This in turn promotes financial inclusion for the excluded and underserved. Index-based insurance, also referred to as "parametric insurance", is an innovative approach to insurance, which is still in its infancy in South Africa. The first index-based insurance products were developed in the 1920s by Indian economist JS Chakravarti. Index-based insurance is based on contracts that use a pre-determined index for claims. The policyholder is entitled to the policy benefits when the index is triggered, irrespective of whether they had suffered an actual loss, lodged a claim or had the damage assessed. This often results in basis risk, in terms of which there is a misalignment between the loss incurred and the policy benefits of the policyholder. Index-based insurance is intended for large-volume, low-value insurance contracts, for example, for small-scale farmers. Under index-based insurance contracts, a policyholder might incur loss and yet not be indemnified for the loss because the index was not triggered. In contrast, a policyholder might be "indemnified" without incurring any loss due to the index being triggered. To this extent, this study sets out to understand the intrinsic features of index-based insurance and the challenges in the context of the current legislative and regulatory framework. This study intends to make a compelling case for allowing index-based insurance products in South Africa, drawing on Kenya's experience and research from relevant international organisations. The surveys conducted by A2ii will serve as a foundation for the challenges that need to be addressed by South Africa. Mercantile Law LLM (Insurance Law and Governance) Unrestricted 2023-02-15T09:11:40Z 2023-02-15T09:11:40Z 2023 2022 Mini Dissertation * A2023 https://repository.up.ac.za/handle/2263/89547 en © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Insurance Index-based insurance Basis risk Derivatives Indemnification Insurance Legislative Framework Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework |
| title | Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework |
| title_full | Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework |
| title_fullStr | Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework |
| title_full_unstemmed | Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework |
| title_short | Introducing index-based insurance in South Africa : feasibility of implementation within the current Insurance Legislative Framework |
| title_sort | introducing index based insurance in south africa feasibility of implementation within the current insurance legislative framework |
| topic | UCTD Insurance Index-based insurance Basis risk Derivatives Indemnification Insurance Legislative Framework |
| url | https://repository.up.ac.za/handle/2263/89547 |