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Consumer Education is an important obligation of all role players in the financial services sector – one that is taken seriously by the South African Insurance Association (SAIA) which has a unique approach to consumer education, specifically the consumer education spend obligated by the Financial Sector Charter, and the fight against financial illiteracy.

It is a fact that many people in South Africa are not financially literate. Statistics show that those in lower income groups often do not have sufficient knowledge about financial services products (including insurance) to make informed decisions, do not have sufficient access to financial services products, and need to be empowered in this regard.

This is one of the reasons why the Financial Sector Charter addresses access to financial services as an important facet of Black Economic Empowerment. The Charter acknowledges the fact that access to these products is fundamental to BEE, and to the development of the economy as a whole. The Charter therefore requires that each financial institution annually invests a minimum of 0.2% of post tax operating profits in consumer education.