© Kamla-Raj 2014 J Economics, 5(1): 57-65 (2014) Investigating the Marketing of Micro-insurance Products in South Africa Zaheenah B. Chummun 1 and Christo A .Bisschoff 2 1 School of Accounting, Economics and Finance, University of KwaZulu-Natal Westville Campus, Private Bag X54001, Durban 4000, South Africa, Telephone: +27 74 281 0500; E-mail: zaina.khan499@gmail.com 2 Potchefstroom Business School, North-West University, Private Bag X6001, Potchefstroom, 2520, South Africa Telephone: +27 18 299 1411; E-mail:christo.bisschoff@nwu.ac.za KEYWORDS Funeral Life Cover. Zimele-compliant. Low-income Households. Financial Exclusion. Business Success. ABSTRACT This study aimed to identify and investigate the marketing mix of the funeral Zimele-compliant micro-insurance product and its influence on business success of micro-insurance firms in South Africa. The influence of marketers’ efforts to address the challenge of financial exclusion to the low-income households in South Africa with regards to microinsurance on business success were explored in the study. A convenience sample of 173 out of 200 employees completed the questionnaires at two biggest insurance companies namely; Old Mutual South Africa and Hollard Insurance, offering micro-insurance products and services in Port Elizabeth was used. The responses signified a satisfactory rate of 86.5%. The findings revealed the mean values for all independent variables generating business success unsatisfactory results (below 60%). The research is of value to insurers, micro- insurers, marketing managers, academics and researchers. INTRODUCTION In South Africa, financial exclusion is a chal- lenge in the financial sector as research reveals that approximately 19% of the South Africans remain excluded from the formal financial servic- es (FinScope South Africa 2012). For this rea- son, the National Treasury of South Africa has prioritised access to financial services as an im- portant objective in the sector’s reform for low- income households. The challenge of inclusion is proving to be more difficult in the insurance sector (National Treasury of South Africa 2011). Sources reveal that 53% of the adult population do not have any kind of financial product insur- ing risk; 30% have some formal financial prod- uct (life cover) covering defined risk, whilst 17% of the adult population rely only on burial soci- eties (funeral cover) (FinScope South Africa 2012). The “Insurance Gap” identified among the low-income households (who are not in- sured), presents a huge opportunity for the South African insurance industry. As a result, the insurance industry in South Africa together with the Financial Services Board have launched measures aimed at giving low-income earners access to insurance known as microinsurance (Association of Savings and Investments of South Africa 2009). Life insurance products for low-income earners are branded as Zimele and are classified as microinsurance products; in- surance for the low-income earners (ASISA 2009). However, the market of micro-insurance (MI) is still at a preliminary stage in South Africa com- pared to its commercial market which is well de- veloped. According to Smith et al.(2011), it is not easy for insurers to market micro-insurance products to low-income earners and generate business success due to inherent challenges present in the process. Although the market of micro-insurance has a lot of potential to grow, the element of business success is still uncer- tain in South Africa. In this paper, the researcherS explore how the application of the marketing mix (product, price, promotion and place) for the Zimele funer- al product measures business success. The re- searcher limits the inquiry to the Zimele funeral MI product as it dominates the low-income in- surance segment (micro-insurance market) in South Africa (National Treasury of South Africa 2011). Problem Statement The emergence of micro-insurance has led to a growing interest in the way in which the marketing is managed. Research reveals that there are many problems in the marketing of MI