Economic trends
Student insurance: a first for SA?
Insurance, ‘medical’ for only R99 a month, comment from Aengus.
JOHANNESBURG - 4sho smart student insurance is
offering to insure laptops and cell phones for only R99 a month.
Conceptualised in 2012, 4sho smart student insurance is still in the
pilot phase and should be launched this year. FirstStay insurance
brokers believes there is a gap in the student market, and as the first
company to launch an affordable student insurance product in South
Africa, it believes that there is a lot of opportunity.
4sho smart student insurance is targeted at students who live in private accommodation and are either under-insured or not insured at all. Caj van Zyl, chairman of FirstStay Insurance Brokers, says that in their research it was found that a majority of students who stay in private accommodation are on the National Student Financial Aid Scheme (Nsfas).
Nsfas provides funding in the form of loans to tertiary students who cannot afford to pay for their fees. Partnering with other service providers, 4sho provides other benefits that would be useful to students living in private accommodation such as telephonic legal advice. Medical emergency services include telephonic advice, ambulance services, access to a health advisor as well as an HIV protection treatment service if a student has been raped. The HIV treatment service allows students to have 24-hour access to over-the-phone trauma counselling, consultations with a GP, blood tests, a 30-day starter pack of antiretroviral medication, 7-day STI medication and pregnancy prevention medication.
The 4sho student policy is underwritten by Santam. Patience Baloyi, affinity markets accounts manager at Santam, says that student insurance is a largely untapped market. As such with no specific product tailored for them, according to van Zyl, this often leaves students with little recourse. Insurance education in South Africa is also low, therefore targeting students in university introduces them to the concept of insurance from an early age, Baloyi says.
The 4sho student policy insures laptops up to the value of R3 500 and cell phones up to the value of R1 000. Van Zyl says that this is because their research indicates that students who are on Nsfas do not own laptops or cell phones over the price of R4 000 or R1 000 respectively. The excess payable is R350 on a first claim, a minimum of R500 on a second claim and R750 if it is a third claim.
Baloyi says that providing a product at an affordable price takes looking at student risk as well as affordability. The 4sho smart student insurance does not provide comprehensive cover but it does allow students to be able to deal with lost, stolen or damaged goods. Van Zyl also highlights that FirstStay has other products targeted at assets that are of higher value.
Asked why the company partnered with 4sho Brett Nadel, Group Operations Director at Aengus, says it’s important for students to start taking responsibility for their property now that they are on their own. “We do not force it on anyone, but the price point should make it quite attractive to them.”
Regarding benefits he said should students suffer a loss of or damage to their property, they will now have recourse to recover the cost. As to whether or not it will take off, he says it’s difficult to tell. “As I said, we do not force it on anyone.”
There are a number of road shows that FirstStay has already undertaken in order to attract students attention, says Van Zyl. The impact of the product will only be known once it is servicing a number of clients. This, Baloyi says, will also allow them to better understand the student insurance market and tailor their products to suit students’ needs.
FirstStay insurance hopes to have 200 000 students signed onto the policy in 2013. Students can apply for the policy through a call centre, Facebook as well as online.
4sho smart student insurance is targeted at students who live in private accommodation and are either under-insured or not insured at all. Caj van Zyl, chairman of FirstStay Insurance Brokers, says that in their research it was found that a majority of students who stay in private accommodation are on the National Student Financial Aid Scheme (Nsfas).
Nsfas provides funding in the form of loans to tertiary students who cannot afford to pay for their fees. Partnering with other service providers, 4sho provides other benefits that would be useful to students living in private accommodation such as telephonic legal advice. Medical emergency services include telephonic advice, ambulance services, access to a health advisor as well as an HIV protection treatment service if a student has been raped. The HIV treatment service allows students to have 24-hour access to over-the-phone trauma counselling, consultations with a GP, blood tests, a 30-day starter pack of antiretroviral medication, 7-day STI medication and pregnancy prevention medication.
The 4sho student policy is underwritten by Santam. Patience Baloyi, affinity markets accounts manager at Santam, says that student insurance is a largely untapped market. As such with no specific product tailored for them, according to van Zyl, this often leaves students with little recourse. Insurance education in South Africa is also low, therefore targeting students in university introduces them to the concept of insurance from an early age, Baloyi says.
The 4sho student policy insures laptops up to the value of R3 500 and cell phones up to the value of R1 000. Van Zyl says that this is because their research indicates that students who are on Nsfas do not own laptops or cell phones over the price of R4 000 or R1 000 respectively. The excess payable is R350 on a first claim, a minimum of R500 on a second claim and R750 if it is a third claim.
Baloyi says that providing a product at an affordable price takes looking at student risk as well as affordability. The 4sho smart student insurance does not provide comprehensive cover but it does allow students to be able to deal with lost, stolen or damaged goods. Van Zyl also highlights that FirstStay has other products targeted at assets that are of higher value.
Asked why the company partnered with 4sho Brett Nadel, Group Operations Director at Aengus, says it’s important for students to start taking responsibility for their property now that they are on their own. “We do not force it on anyone, but the price point should make it quite attractive to them.”
Regarding benefits he said should students suffer a loss of or damage to their property, they will now have recourse to recover the cost. As to whether or not it will take off, he says it’s difficult to tell. “As I said, we do not force it on anyone.”
There are a number of road shows that FirstStay has already undertaken in order to attract students attention, says Van Zyl. The impact of the product will only be known once it is servicing a number of clients. This, Baloyi says, will also allow them to better understand the student insurance market and tailor their products to suit students’ needs.
FirstStay insurance hopes to have 200 000 students signed onto the policy in 2013. Students can apply for the policy through a call centre, Facebook as well as online.
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