In this guest blog, Izak Smit, Group Chief Executive Officer, PPS (South Africa) shares his thoughts on how insurance can go beyond financial protection to actively shape a safer, more resilient, and happier world with insurance as a cornerstone of global well-being, not just a safety net. PPS is the only mutual financial services company in South Africa that focuses exclusively on graduate professionals, providing tailor-made insurance, investment and healthcare solutions to its members. Izak is also one of the Vice-Chairs on the ICMIF Board of Directors.
Imagine a future where insurance goes beyond financial protection to actively shape a safer, more resilient, and happier society. We should strive for this vision – insurance as a cornerstone of global well-being, not just a safety net.
In the years ahead, the insurance sector has the potential to transform society, not only by mitigating risks but by fostering empowerment, education and sustainability. At the Professional Provident Society of South Africa (PPS), we see this vision unfolding. But it requires rethinking our approach – moving beyond the traditional role of risk hedging into one that shapes a more equitable, resilient world for generations to come.
Going beyond risk hedging: shaping tomorrow’s financial landscape
The insurance industry has the power to drive positive societal change by empowering individuals to make informed financial decisions. Graduate professionals – often overlooked in financial education – are particularly vulnerable to protection shortfalls due to a lack of personal finance knowledge. Our experience at PPS is that, although professionals are highly educated in their various fields, many face the same educational gaps in personal finance as the rest of society. At PPS, we are committed to bridging this gap through accessible education. The future of insurance should protect and educate, fostering financial literacy to help individuals navigate life’s uncertainties with confidence.
Prevention over cure: a new era of proactive risk management
At PPS, we believe the future of insurance will focus more on prevention than ever before. The principle of “prevention is better than cure” is already evident in programmes promoting healthier lifestyles, safer driving and improved infrastructure.
Looking ahead, insurers could actively prevent risks before they occur, collaborating with clients to minimise losses. Innovations like wearable tech and smart home devices mark the start of this shift. By integrating proactive risk management into daily life, insurers can reduce claims, foster resilience and benefit society with potentially lower premiums.
Mutuals and cooperatives: the heartbeat of community resilience
The cooperative and mutual insurance model is a powerful tool for addressing global challenges. With a focus on long-term sustainability and community support, mutuals prioritise members’ needs over short-term profits. These organisations are uniquely positioned to tackle issues like financial inclusion and the United Nations (UN) Sustainable Development Goals (SDGs).
Recognising their potential, the UN has declared 2025 the Year of Cooperatives (which includes mutual insurance businesses), highlighting the need for regulatory environments that support mutuals and cooperatives in driving positive change, from reducing financial exclusion to promoting environmental sustainability.
Education: the key to unlocking sustainable change
Education will continue to play a central role in transforming the insurance sector. Whether it is educating individuals about the risks they face or supporting broader social initiatives through corporate social responsibility, insurers can drive long-term change.
At PPS, we are already taking steps to educate our members and communities about risk management, financial planning and insurance. But looking forward, this needs to go further. Insurance companies must become trusted sources of knowledge, guiding people toward sustainable financial decisions that benefit both their personal futures and the world at large.
Tackling the environmental crisis: insurance as a force for global good
While not a major contributor to carbon emissions, the insurance sector plays a crucial role in addressing the environmental crisis – through the deployment of the investments that they manage and their influence on risk management behaviour. By funding green projects and renewable energy initiatives, insurers can drive sustainability. They can also incentivise eco-friendly behaviour through adjusted premiums for clients adopting sustainable practices. In the future, the insurance sector will be key in supporting sustainable development and the transition to a low-carbon economy, helping mitigate climate change and other environmental challenges, and building a more resilient world.
Public-private partnerships: building a stronger tomorrow together
Looking ahead, public-private partnerships will become increasingly important in achieving the vision of a more sustainable and resilient world. Governments play a crucial role in creating the regulatory frameworks that guide the insurance industry, but it is up to the private sector to innovate and bring those frameworks to life. Governments create the playing fields; businesses and society are the players who ultimately deliver the products and services.
By working together, insurers, regulators and governments can create competitive, transparent markets that deliver high-quality services and solutions to communities around the world. In emerging markets, these partnerships will be essential for delivering financial inclusion and reducing poverty.
Looking ahead: the next ten years
The insurance sector will experience rapid change in the next decade, driven by technology, innovation and a growing demand for sustainability. To meet the challenges ahead, the insurance industry must continue to evolve. By lowering barriers for mutuals and cooperatives, embracing digital innovation and fostering a culture of education, insurers can close protection gaps and build a more resilient world.
The future of insurance is not just about covering risks – it is about transforming society, empowering individuals and addressing the most pressing challenges of our time. The journey ahead may be complex but with bold action and collaboration, we can create a safer, more sustainable world for all.
* PPS is a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP.
