I have been asked to arrange joint life second death life cover for British citizens living in South Africa. I have had no success in finding an insurer ' what do you suggest?
Insurance companies normally only sell contracts to UK residents. They do not, generally, offer cover to people living in other countries unless they are only resident on a temporary basis. This is because the claims experience of a worldwide portfolio would be different to that expected from a UK pool of lives and could affect the premiums charged to all.
However, some companies do choose to offer cover abroad. This is normally where they believe they have sufficient experience in overseas pricing, underwriting and claims to be able to make the business viable.
What they also need to take into account is that in some parts of the world, the local insurance market is fiercely protected against outside providers. This is the case in South Africa where they actively discourage companies that are not locally authorised from trading.
As a result of these two factors, if your clients intend to be resident in South Africa for the foreseeable future, you need to look for a company who sells there. Therefore, I suggest that in this case, perhaps your clients choose a local insurer.
Lynda Cox
