With youth unemployment nearing 46% this year, young South Africans are increasingly entering the economy through non-traditional pathways such as entrepreneurial ventures, freelance work, and platform-based income.
According to Leruo Malumo, Head of Product Strategy Development and Governance at Santam, this evolving way of working is fundamentally reshaping risk for the next generation. “While opening up new opportunities, these modern-day young professionals are building their livelihoods in environments marked by heightened uncertainty and volatility.”
Malumo highlights three key structural shifts among Santam’s younger client base, namely income volatility risk, digital dependency risk, and liability risk. “Many young professionals today operate in the gig economy or are trying to build multiple income streams, often out of necessity, which means they’re more exposed to disruption. Laptops, smartphones and mobile Wi-Fi routers are also no longer luxuries, they are productive assets and essential for generating income.
“Young people establish their financial foundations and independently grow their professional networks, the risk of unintentionally causing damage or loss to others also increases,” he adds.
Despite this evolving risk landscape, Malumo says insurance is often viewed as a secondary priority. “Younger consumers tend to see cover as a discretionary expense, rather than a foundation for financial stability,” he explains. “In reality, insurance is what protects the pathway to growth for these young professionals. Without it, a single adverse event – whether it be a car accident or a stolen laptop – can set someone back years.”
As such, Malumo argues that reframing insurance is critical to improving adoption and building financial resilience. “From our perspective, insurance should be repositioned not as a defensive purchase, but as an enabler of ambition. It’s what allows young people to take calculated risks, pursue opportunities, and achieve financial freedom.”
A practical way to understand this is to view insurance alongside saving and investing as part of a broader financial plan. “Savings are the seeds of wealth. Investments grow wealth. Insurance protects wealth,” says Malumo. “The key is to find the balance.”
However, affordability remains a real constraint, particularly early on in one’s career. Rather than defaulting to minimal cover, Malumo encourages a different approach to decision-making.
“The question should shift from ‘what can I afford?’ to ‘what risk can I not afford to carry myself?’ This is the affordability question that trumps all others,” he says. “It’s where we as insurers come in – doing for a young person what they are not in a position to do for themselves.”
This principle is especially relevant when it comes to protecting everyday assets that underpin earning potential. “For many young South Africans, their ability to earn is directly tied to a small number of assets,” he explains. “A car enables mobility and access to work opportunities. A laptop is a workplace. Tools and equipment are value-adding instruments.”
“Protecting these assets is therefore equivalent to protecting future earnings capacity,” Malumo explains. “Seen in this light, choosing an insurer is choosing a partner in one’s strategy to maintain economic momentum.”
Yet, gaps in cover remain all too common among young professionals, with Malumo highlighting the issue of underinsurance – a lack of liability cover, and policies that are not updated as circumstances change. “A key blind spot is not recognising that risk evolves at a rapid pace in the early stages of adulthood,” says Malumo.
To address this, he recommends three core priorities for those starting their careers or businesses: mobility protection, asset protection, and legal protection. For entrepreneurs, he adds a fourth consideration: “basic business interruption cover, which can be the difference between flourishing over time or going out of business after a shock event.”
Regular reviews are equally important. “At a minimum, cover should be reviewed annually, but it should also be event-driven,” Malumo notes, pointing to triggers such as job changes, business growth, major purchases, relocation, or shifts in working arrangements.
As insurers adapt to changing consumer needs, he says Santam’s focus is on making cover more accessible and relevant to younger South Africans. “We are designing modular, needs-based solutions that align with real lifestyles – whether that be for gig workers, entrepreneurs, or young professionals.”
Through digital platforms and partnerships, Santam is also working to simplify the experience. “Insurance must be easier to understand, faster to purchase and manage, and integrated into everyday ecosystems,” he adds.
Ultimately, Malumo believes that improving financial literacy and access will play a central role in shifting perceptions. “We believe a thriving insurance market made up of informed buyers and suppliers is a defining feature of a healthy society,” he concludes. “Our ambition is to shift insurance from being reactive to being proactive, intuitive, and empowering for a new generation of South Africans.”