Stokvel Insurance: A Potential South African Phenomenon

One can never guarantee most things in life but history has taught us that one can certainly guarantee change. The question then arises is whether or not corporate South Africa, and in particular, the insurance industry is ready for the change that commercial/investment stokvels will bring.

The Companies Act No. 71 of 2008 ("the Companies Act") does not define what a "stokvel" is.  However guidance may be ascertained from the National Credit Act No. 35 of 2005 ("NCA") which states that a stokvel is a formal or informal rotating financial scheme with entertainment, social or economic functions, which:

1. consists of two or more persons in a voluntary association, each of whom has pledged mutual support to the others towards the attainment of specific objectives;