Micro Insurance Fund To Leap into South African Market

April 1- Leapfrog Investments, considered the world's first micro-insurance fund, has raised more than R825 million to invest in businesses around the world that follow certain criteria.

The group will invest in companies that provide affordable and life-changing insurance in countries on the Asian and African continents.

In a statement his week, it was confirmed that South Africa is one of the three countries that has been chosen in its Africa category.

This means that Leapfrog Investments could essentially invest up to R200 million in local companies, it was learned.

Leapfrog boasts a string of investors, giving it huge backing by top names in the industry, including the Soros Economic Development Fund, the European Investment Bank and the World Bank International Finance Corporation.

"We estimate South Africa has about 8.2 million people served by micro insurance, making it one of the leading markets of its kind in the world," said Leapfrog principal, Gary Herbert at the group's Johannesburg office. "Some of the largest and most successful micro insurance schemes originate here."

Herbert said that there was a strong demand for affordable insurance products in South Africa, especially among low income groups.

Coupled with innovative private sector players, and income from Leapfrog's initiative, this could lead to many changes in the country's micro insurance scene.

"Millions of people in our country still do not have access to affordable and relevant financial services," said Herbert. "This despite these services being potentially commercially available and despite the many distribution channels available to them - from banks and retails stores to mobile phone networks, micro finance institutions and churches."