Simply and SweepSouth, two technology players with a focus on social impact and financial inclusion, have announced a partnership to provide accidental death and disability cover at no cost to all SweepSouth’s SweepStars - its force of domestic cleaners.

The partnership is a win-win. It deepens Simply’s social commitment to provide cover to individuals among lower income groups who currently are underserved, particularly when it comes to life and disability cover. For SweepSouth, the gesture builds loyalty and commitment among the over 7 000 SweepStars it currently has on its books.

The partnership also helps serve a profound need in the domestic worker space. According to the SweepSouth Report on Pay and Living Conditions for Domestic Work released earlier this year, 78% of domestic workers don’t have any form of savings or pension. And with 84% of domestic workers being sole breadwinners, their families face potential catastrophe if anything happens to them.

The SweepSouth concept, which connects households needing cleaning services with independent domestic workers, was born out of frustration at the many structural inefficiencies and lack of progress in terms of pay rates and further upskilling opportunities for workers within the domestic services industry.

“In many ways, this sector had remained unchanged in practice and attitude for decades,” says SweepSouth founder and CEO Aisha Pandor.

“We wanted to provide dignified, flexible work opportunities at decent levels of pay, to domestic cleaners,” she added.

Homeowners and corporate clients book SweepStar services online through the SweepSouth website and mobile app. SweepStars in turn are able to choose where and when they wish to work, earn up to 80% of the booking fee (plus all of the tipped amounts), and through digital literacy learn to unlock the power of devices such as smartphones, which become tools to add income to their families.

“The SweepSouth partnership with Simply extends dignity to the SweepStars and their families by providing accidental death and disability cover at no cost to the cleaner,” Pandor says.

Simply, an insurtech startup providing great value life, disability and funeral cover online, is making waves in the South African insurance industry. The business has sold over 8 000 policies since launch in late 2016, with most of its retail policies sold via mobile.

The initiative with SweepSouth is a good strategic fit for Simply, as serving South Africa’s one million strong domestic worker force is already a key focus for the company. Through their Domestic Cover product, employers of domestic workers can provide low-cost life, disability and family funeral cover for their employees through a convenient online buying process.

Anthony Miller, CEO of Simply, explains: “When a domestic worker dies or becomes disabled through an accident, his or her dependants are often left destitute.  Working with SweepSouth, who share our passion for social impact, we can now extend our benefits to thousands who would otherwise not have had any life or disability cover. And this at no cost to the Sweepstars.”

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About Simply Financial Services (Simply)

Simply Financial Services (Simply) is a registered financial services provider that designs and sells great value, simple life insurance products in South Africa.  The business was founded by three South Africans – technology entrepreneur Anthony Miller and actuaries Simon Nicholson and Shaun Dippnall – and has offices in Cape Town and Johannesburg.

Simply offers 3 products: Family Cover – Cover for individuals; Domestic cover – Cover for domestic workers; and Group Cover – cover for the employees of businesses, NGOs and otherSimply products include life, disability and funeral cover – available individually or as a combo. Policies start from as little as R59 a month, depending on the benefits and level of cover selected, and are really easy to buy online. They are underwritten by Old Mutual Risk Transfer Ltd (OMART), a member of the Old Mutual Group, and reinsured by the Reinsurance Group of America (RGA).

For more information, check Simply out at www.simply.co.za

About SweepSouth

SweepSouth’s mission is to create happy homes by providing dignified, flexible work at decent pay to our SweepStars; and a hassle-free and reliable service that gives time back to our clients. Our SweepStars can dictate where and when they would like to work, earn up to 80% of the booking fee (plus tips), and learn to use technology to unlock the power of a device like a smartphone, so that it becomes a tool that can bring income to their families.

This impact on wider communities is something we are especially proud of, with 74% of our SweepStars being primary breadwinners at home. Of the thousands of SweepStars we’ve already given work opportunities to via our platform, 71% were previously unemployed while 29% were underemployed, evidence of the real impact we’re having on creating employment.

For more information, check SweepSouth out at www.sweepsouth.com

According to Stats SA’s latest Quarterly Labour Force Survey, more than 6% of working South Africans are employed as Domestic Workers*, and more people are employed in private households than in the mining and agriculture sectors combined. If dependents of these workers are included, then as many as four to five million people are supported by this industry.

However, up until recently there haven’t been many options for the average South African domestic worker to access simple, good value life insurance. There are a number of insurance companies targeting low income customers, but the products are often limited to funeral cover only. Given the financial challenges many domestic workers face, they also often struggle to keep up with payments, so in many cases their cover lapses and isn’t in place when it’s needed.

Insurtech player Simply Financial Services (Simply) has introduced a new life insurance bundle called Domestic Cover which is aimed specifically at employers of domestic employees.  The product, which comprises life, disability and funeral cover, is affordable, easy to understand and strong on accessibility. Its also completely flexible, with the customer able to customise the bundle to suit their needs and budget. The policies are underwritten by Old Mutual Alternative Risk Transfer Limited, an insurer in the Old Mutual group – so customers can be safe in the knowledge that valid claims will be honoured.

“Simply’s aim is to provide easy-to-understand, affordable and accessible life insurance for the mass market in South Africa, and thereby contribute to a significant new level of financial security to people in this segment,” said Anthony Miller, CEO of Simply Financial Services.

“Life tends to be risky and uncertain for domestic workers and their families.  When a breadwinner becomes disabled and possibly even dies, the families are left without significant savings and with large funeral bills to pay.

“If you add societal risks such as taxi accidents and random violence for the workers who often travel large distances to and from work, the level of risk facing this sector becomes apparent,” Miller said.

“The bottom line is that the worker’s dependents are very often consigned to poverty in the event of death or disability,” he said. “Their employers may feel obliged to provide financial assistance in these situations”.

By using technology and an innovative operating model, Simply products are able to deliver great value. For example, a 30-year-old woman earning R4 500 a month gets R100 000 life cover, R150 000 disability cover and R15 000 family funeral cover (which covers the insured person, the spouse and up to five children) for R92 per month.

And by putting the responsibility for paying the premium on the employer, the risk of cover being cancelled due to lack of payment is greatly reduced, meaning the cover will be there when needed. If the domestic worker moves on, they can choose to take over the payment of the premium on the same terms, or they can ask their new employer to take over the policy.

As an alternative Simply also offers a Family Cover product with similar benefits and costs, but where instead the employee takes out the cover and is responsible for paying the premium themselves.

Signing up is simple. The entire online process takes less than ten minutes and requires the individual to fill in some personal details and answer three health-related questions.  Should they qualify, cover is immediate.

For the employers of domestic workers in South Africa, this represents a great opportunity to provide a valuable safety net for their staff, many of whom have been loyal employees for decades, without adding significantly to their costs. 

For more information about Simply, go to www.simply.co.za.

*Source: https://businesstech.co.za/news/business/180831/south-africa-has-more-domestic-workers-in-employment-than-professionals/