Tony van Niekerk, COVER
At COVER, I recently had the opportunity to speak with Jaco Mostert, Group CEO of Workerslife, about the evolving role of life insurance in addressing financial vulnerability and promoting economic stability.
Jaco shared valuable perspectives on wealth transfer, financial responsibility, and the challenges facing the insurance sector in South Africa.
The Power of Wealth Transfer – “When it comes to life and health insurance, the concept of wealth transfer is critical,” Jaco emphasised. “People may not have the means to save significantly, but they can ensure their loved ones are financially secure when they’re no longer around.” He explained how a life insurance policy can act as a bridge, providing financial continuity for families who might otherwise face dire circumstances.
Jaco illustrated this with a practical example: “If I can afford R5,000 a month, I can leave behind R10 million in life cover. This ensures my family can continue without drastic changes to their lifestyle.” He further elaborated on the impact of this wealth transfer on dependents, especially in cases where a single breadwinner supports multiple family members. Without insurance, the financial shock can ripple through extended networks, affecting several lives.
Challenges in Financial Responsibility – However, Jaco was candid about the challenges that come with distributing large sums of money to beneficiaries. “If a breadwinner earning R5,000 a month passes away and their family receives a lump sum of R2 million or R3 million, that money can be depleted within six months if not managed wisely,” he noted.
“Often, the funds are spent on non-essential items, like a new kitchen or car, instead of being invested for long-term benefit. This highlights the need for education on financial literacy and structured income streams as part of the insurance offering.” Jaco’s insights underscore the importance of coupling insurance payouts with advisory services to ensure sustainable financial outcomes.
Workerslife: A Unique Player in the Market – As Jaco elaborated on the landscape of insurance providers, he highlighted the unique position of Workerslife. “We’re one of the very few, if not the only, 100% Black-owned life insurers with a life license,” he stated proudly. “Thirty years into democracy, there’s still a significant gap in representation within the insurance industry.”
Jaco’s comments reflect the broader need for diversity and inclusion in financial services, as well as the importance of building institutions that resonate with and serve historically underserved communities. He also pointed out that profit motives should be balanced with the mission to provide accessible insurance products. If we want to do the right thing, we must accept that there should be an interdependency between profits and accessibility,” he added.
PREMIUM COLLECTIONS MADE SIMPLE
- User friendly collections System
- Dedicated service consultant
- Collect directly into Insurer Bank Accounts
- Wide variety of reporting services
Take the admin out of your premium collections
An authorised Financial Services Provider – FSP 50552
The Role of Regulators – Jaco also addressed the role of regulators in shaping the insurance landscape. “While businesses have a responsibility to innovate and expand access, regulators also have a responsibility in this regard,” he asserted. Jaco believes that by easing certain constraints, regulators could help insurers reach the millions of underinsured South Africans, thereby strengthening financial resilience across the country.
“I’ve voiced these concerns directly to regulators,” he admitted. “Though we don’t always agree, I believe collaboration is essential for addressing the systemic barriers that prevent broader insurance coverage.”
A Call to Action for the Insurance Industry – Throughout our conversation, Jaco’s passion for addressing inequality and improving access to financial security was evident. He called on businesses and insurers to step up, not only to drive profitability but also to contribute meaningfully to the economy and society.
“Insurance is about more than just profit margins,” Jaco stated. “It’s about creating safety nets and opportunities for families and communities to thrive, even in the face of adversity. We need to shift our focus from short-term gains to long-term impact.”
In a country where 27 million people remain underinsured, Jaco’s vision for a more inclusive and socially responsible insurance industry is both inspiring and urgent. His belief in the transformative power of insurance—not just as a product but as a means to foster economic stability—offers a roadmap for how the sector can evolve to better serve South Africans.
My conversation with Jaco highlighted the critical role insurance can play in safeguarding families and communities. As the CEO of Workerslife, Jaco’s insights reveal a deep commitment to bridging financial gaps and advocating for systemic change. His call for a collaborative approach between businesses, insurers, and regulators resonates as a timely reminder that financial resilience is a collective effort.