Social Finance Working Paper #22: Informal micro-finance schemes

The case of funeral insurance in South Africa

Based on a study carried out in the Grahamstown township, examines means available for obtaining the cash required to finance a funeral. Compares and evaluates four types of funeral insurance providers: formal assistance insurers, formal friendly societies and informal non-profit and for-profit insurers. Explores reasons why consumers prefer informal insurers and draws lessons for the formal insurance sector.