Abacus Insurance is reimagining funeral cover as a tool for dignity, resilience, and legacy

Funeral cover is the most widely adopted insurance product in South Africa – more trusted, more purchased and more embedded in everyday life than any other form of insurance. However, what happens when funeral cover is no longer seen as a payout for death, but instead designed as a platform for dignity, survival and financial legacy?

That shift from a death benefit to a platform for dignity is not theoretical, it is already visible in how funeral insurance is being used across South Africa. In a context defined by deep inequality and economic pressure, funeral cover has become one of the few accessible financial tools that offer immediate, flexible support. Households are no longer treating it as a one-off event cost, but as a form of community safety net.

Payouts are increasingly used not only for burial expenses but also to fund essentials such as education, shelter and income generation. As customer behaviour changes, so too must the products. A growing number of South Africans are stacking multiple policies, covering extended families and choosing insurers they believe will deliver quickly, simply and with dignity when they need it most. These shifts are reshaping the expectations of what funeral cover is and what it can be.

A human-centred strategy, rooted in purpose
Abacus Insurance is responding to shifting dynamics in the funeral insurance market with a model grounded in empathy, access and shared value. Launched just over a year ago, its funeral cover offering was developed to meet the needs of South Africa’s value-conscious, community-oriented households, many of whom face economic pressure but still seek ways to provide dignity, support and stability for their families.

Unlike traditional insurance products that often originate in high-income contexts, funeral cover has always reflected the social and financial realities of emerging markets. It mirrors the principles of stokvels in both function and intent, supporting extended families, pooling resources and responding to the needs of the many, not just the individual.

This makes Abacus a natural extension of the Pepkor Group. As Pepkor’s financial services business, Abacus is anchored in the group’s long-standing philosophy of enabling livelihoods through accessible value. With retail brands like Ackermans, PEP and the Pepkor Speciality brands already trusted by millions, Abacus is able to meet customers in familiar spaces, offer products that reflect their lived experience and ensure that value extends beyond the store and into the moments that matter most.

From payout to possibility
Abacus’s funeral cover reflects the realities of how households manage through uncertainty.

This aligns with recent market reviews, which show that funeral policies are often purchased as flexible financial tools. In mid-2021, funeral insurance sales in South Africa reached R13.5 billion, nearly four times the size of the underwritten life market (R3.9 billion), indicating their deep penetration into everyday financial planning. By the first quarter of 2025, South African funeral sales had nearly doubled again, reaching R21.72 million. Meanwhile, industry experts estimate that less formalised stokvel and burial society structures cover the balance of the market, highlighting the broad socio-economic reliance on these products. Given that funeral insurance remains the most widely held type of policy, covering nearly half of adults, it’s clear that these payouts frequently serve a dual role, covering funeral costs as well as acting as a short-term financial buffer for pressing household needs.

In a country where resilience often depends on resourcefulness, funeral cover has become a means of providing support beyond the moment of loss. The Abacus model is designed with this flexibility in mind, helping families navigate hardship with dignity and build stability where it’s needed most.

Claims with compassion
For Abacus, trust is most visible when it matters most. The claims process is designed to be clear, responsive and grounded in care.

Rather than burdening families during a time of grief, Abacus is working to simplify the claims experience, using technology and available data to verify details behind the scenes. The goal is to reduce the administrative weight families often carry, while still protecting the integrity of the process.

Abacus’s commitment to a seamless claims experience reflects broader industry benchmarks in South Africa, where insurers are increasingly simplifying claims processes to reduce administrative burdens on families. The Association for Savings and Investment South Africa (ASISA) reported that member insurers paid out more than R40 billion in funeral claims in 2024, with 95.9% of claims paid without issues or denials, indicating that the majority of claims proceed without follow-up paperwork or delays. This level of efficiency supports Abacus’s ambition to offer a clear, responsive and compassionate claims process, leveraging technology and data verification to ease the administrative load during a time of grief.

This approach reflects a broader shift towards compassionate service, placing the operational responsibility where it belongs – on the insurer – so that families can focus on navigating loss.

Stacked, flexible and community-minded
Gen Z represents a new kind of insurance customer: digitally connected, socially aware and financially pragmatic. Many are entering the workforce during a time of economic uncertainty and rising household dependency. Instead of waiting until later in life to engage with insurance, they are taking on financial responsibilities earlier, often contributing to family needs and stepping in to support older relatives.

This reality shapes their approach to funeral cover. For Gen Z, a policy is not just about burial, it is a way to honour cultural obligations, ease the burden on their families and, in some cases, create an opportunity for the household to recover and move forward. The motivation is practical, intentional and deeply relational.

Abacus is well-positioned to serve this generation. With a simple, flexible cover that accommodates extended families and makes room for real-life use, the product reflects the priorities of Gen Z customers. It is accessible through trusted retail channels, easy to understand and aligned with how younger customers want to engage: with clarity, purpose and impact.

A disruptive path to scale
The growth of Abacus Insurance reflects a shift in the role insurance plays in people’s lives and how the market is responding to this change. In a category long shaped by traditional insurers and bank-led models, Abacus has carved out space by approaching funeral cover differently: with clarity, cultural relevance and respect for how households manage risk.

Since the launch of its new funeral products in July 2024, Abacus has experienced rapid growth, with 1 million lives covered at the end of September 2025. Abacus funeral policies are available across Pepkor’s extensive retail network, including PEP, Ackermans and Dunns, and will soon be available across the Pepkor Lifestyle brands.

This growth reflects a deliberate strategy to reach underserved segments, support first-time policyholders and respond to the evolving needs of younger generations. With growing uptake among Gen Z and Millennials, Abacus is expanding access to insurance in relevant ways, rooted in real-life experience and aligned with how today’s families build financial resilience.

Abacus is accelerating access for young, first‑time policyholders in South Africa, especially Millennials and Gen Z. Though 62% of 18 – 29 year‑olds see insurance as vital, only 17% are covered, and those aged 30 – 39 are underinsured by R1.4 million on average. As this generation accumulates assets, IRAs are expected to experience 6.3% insurance growth through 2032 across Africa, with South Africa continuing to lead with 9.4% GDP penetration and R655 billion in premiums Abacus is meeting them where they are, as mobile-first, real-life informed, building financial resilience for today’s families. Over 30% of Abacus funeral sales have been to Millennial policy owners and a further 11% to Gen Z customers.

As the boundaries of financial protection continue to shift, Abacus offers a glimpse of what a more responsive and relevant insurance model can look like – one built not only to cover loss but also to support life in all its complexity.

Sources: ASISA, Beem Africa, Daily Investor, Insurance Chat, IOL, Ipsos, NMG, Stears