Assessing the opportunity for remittance-linked insurance products in sub-Saharan Africa

This research paper assesses the demand for remittance-linked insurance products (RLIPs) among migrants in South Africa sending money to Ghana, Malawi, and Zimbabwe. It finds that while senders are highly concerned about health, death, and education costs for themselves and their families, they rely almost exclusively on informal coping mechanisms and savings. The study highlights a significant trust gap in formal financial services, particularly among Ghanaian senders, and recommends that RLIPs be designed with small, discretionary premiums, clear terms, and a strong link to the wellbeing of the receivers.

• Remittance senders in the studied corridors share similar demographic profiles and sending habits. Most are male, hold only the citizenship of the destination country, and are employed full-time, self-employed, or part-time. Senders to Ghana and Malawi are generally about ten years younger than those sending to Zimbabwe. The primary recipients of remittances are parents, followed by siblings, spouses, and children.
• There are distinct differences in remittance patterns across the three corridors. Senders to Ghana and Zimbabwe typically remit monthly, whereas those sending to Malawi report weekly remittances. While Ghanaian and Malawian senders report slightly higher amounts per individual transaction than Zimbabwean senders, the total monthly amounts sent are similar across all corridors.
• Senders' primary concerns regarding their own risks are centered on death, health events, and loss of income, largely because of how these events impact their ability to support family back home. The most desired insurance products for themselves include coverage for doctors' and hospital costs, funeral or burial costs (including repatriation of the body), and income loss due to job loss.
• For receivers, senders are most concerned about education costs, health events, and funeral costs. There is a noted mismatch between these concerns and the products senders are willing to purchase; while education is a major concern, the highest willingness to purchase insurance is for costs associated with a receiver's death (funeral/burial/life insurance), followed by education and health costs.
• Senders rely heavily on informal coping mechanisms for financial emergencies, such as using savings or borrowing from friends and family, rather than formal insurance or registered financial institutions. This trend holds for both their own emergencies and those of their receivers, though senders are more likely to use savings for receivers' emergencies than for their own.
• Ghanaian senders exhibit a higher level of hesitation toward formal financial services compared to other corridors, citing significant concerns regarding the trustworthiness of providers. They specifically require detailed terms and conditions and evidence that insurance has worked for others before committing.
• The research suggests several design considerations for successful RLIPs: premiums should be small, discretionary, and collected per remittance rather than automated; terms must be clear and concise; and RSPs should partner with trusted insurers because senders view the product as an offering of the RSP. Additionally, the study suggests offering targeted savings wallets for flexibility and loyalty products to differentiate RSPs.

APA

Thom, M., Rinehart-Smit, K., Allen, M., & Scribante, K. (2022). Assessing the opportunity for remittance-linked insurance products in sub-Saharan Africa. FSD Africa. https://fsdafrica.org/wp-content/uploads/2025/05/Assessing-the-opportunity-for-remittance-linked-insurance-products-in-sub-Saharan-Africa_January-2022.pdf

Chicago

Thom, Mia, Kate Rinehart-Smit, Michaella Allen, and Karien Scribante. Assessing the opportunity for remittance-linked insurance products in sub-Saharan Africa. FSD Africa, 2022. https://fsdafrica.org/wp-content/uploads/2025/05/Assessing-the-opportunity-for-remittance-linked-insurance-products-in-sub-Saharan-Africa_January-2022.pdf.

Wikipedia

{{cite report |last1=Thom |first1=Mia |last2=Rinehart-Smit |first2=Kate |last3=Allen |first3=Michaella |last4=Scribante |first4=Karien |title=Assessing the opportunity for remittance-linked insurance products in sub-Saharan Africa |publisher=FSD Africa |date=January 2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Assessing-the-opportunity-for-remittance-linked-insurance-products-in-sub-Saharan-Africa_January-2022.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{thom2022assessing, author = {Thom, Mia and Rinehart-Smit, Kate and Allen, Michaella and Scribante, Karien}, title = {{Assessing the opportunity for remittance-linked insurance products in sub-Saharan Africa}}, institution = {FSD Africa}, year = {2022}, month = jan, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Assessing-the-opportunity-for-remittance-linked-insurance-products-in-sub-Saharan-Africa_January-2022.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }