The Rise of Microinsurance: What Funeral Parlours Need to Know in 2025

In 2025, microinsurance has evolved from a niche concept into a widely adopted model, particularly in emerging markets. It offers affordable, high-impact coverage to underserved communities, and in doing so, it presents new possibilities for funeral parlours across South Africa and beyond.

But while the opportunity is real, the solution isn’t one-size-fits-all. Microinsurance might be the right fit for some operators, and less so for others. What’s essential is understanding the model, evaluating its potential, and preparing your business to adapt if needed. That’s where 360 Administration and Systems can help.

 What is Microinsurance and Why Is It Trending?

Microinsurance refers to low-premium, low-coverage insurance products, tailored for clients who may not afford traditional policies. With fintech innovation, mobile-first engagement, and evolving compliance standards, microinsurance is thriving, especially in rural and township communities.

The demand for affordable funeral cover continues to rise, placing strain on traditional operations. Without scalable tech and streamlined systems, it’s tough to manage high policy volumes, low margins, and fast claim expectations, the trademarks of a microinsurance model.

Is Microinsurance Right for You?

For some parlours and brokers, microinsurance is a gateway to scale, but it also comes with operational and compliance challenges. Here’s what to consider:

• Wider Market Reach: Can you serve larger, lower-income populations?
• Revenue Strategy: Will high volumes of low-premiums policies suit your cash flow model?
• Client Expectations: Can your team meet 24/7, digital-first service demands?
• Regulatory Readiness: Are your compliance and audit systems watertight?

This conversation was explored in detail at the South African Funeral Industry Summit 2025, where industry leaders weighed the pros and cons of evolving models like microinsurance. The key takeaway? Every business must define its own future, but digital readiness is non-negotiable.