South Africa’s financial services sector is among the most advanced on the continent. In 2024, the country led with an insurance penetration rate of 11.54%, significantly surpassing the continental average of 1.47% in 2022 and drawing closer to the global benchmark of 5.6%. This demonstrates the depth and maturity of South Africa’s insurance landscape, a market that sets the pace for innovation and regulatory development across the region.
Insurers and brokers face pressure to grow, prompting many to acquire stakes in independent brokerages for customer access rather than innovation. As a result, financial advice is often driven by profit targets, not client needs, and consumers end up with products that serve the insurance industry rather than their personal goals.
In this environment, South Africans pay not just in premiums but also in missed opportunities to build wealth, protect their families and plan for the future. Without a shift towards financial literacy, transparency and independent advice, this cycle will continue making independent advice not just helpful, but transformative.
Why independence matters
Unlike tied agents who represent a single provider, independent financial advisors (IFAs) have the freedom to recommend solutions tailored to your needs, especially within advisory houses offering access to many products and providers. Research by the Bureau of Market Research and Momentum found households with professional advice have portfolios 9.5 times larger on average. For some, this is the difference between renting for life and owning a paid-off home, highlighting the impact of financial guidance.
Beyond compliance, towards care
Employee benefits professionals must deliver more with less. Independent brokers balance cost and care, navigate regulatory shifts like NHI and medical scheme reform, build wellness strategies for retention and offer guidance to boost engagement. Their independence unlocks innovative solutions across the market.
Ultimately, it’s about fostering cultures of care that support both people and performance.
Protecting the vision
Africa’s youth face a future of potential: by 2035, the continent is expected to have the world’s largest workforce. For them, financial literacy is crucial for sustaining businesses, making informed decisions and achieving long-term growth. When young entrepreneurs master cash flow, asset protection and planning, they don’t just build wealth – they build resilience. This resilience fuels job creation, economic stability and inclusive prosperity.
Independent advice helps founders:
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- Separate personal and business finances
- Plan for liquidity events and succession
- Structure ownership and protect assets
- Build long-term wealth while scaling their ventures
“Entrepreneurs are builders,” adds Tishalan Pillay, director of sales and marketing at ASI. “But without the right financial strategy, even the best ideas can falter. Independent advice helps turn vision into legacy.”
Reclaiming purpose and professionalism
Choosing to be an independent advisor means serving clients without compromise, building trust and creating value beyond commissions. While tied agents often earn more selling specific products, independents prioritise clients’ interests. Remaining independent is a bold, client-first choice in a market where providers tie advisors to their offers.
The trade-offs
Independence comes with trade-offs. Advisors and clients may face higher costs and more compliance. But these challenges are balanced by the freedom to choose products in the clients’ best interests. For many, this freedom outweighs the constraints of tied models. Independent advice empowers individuals to control their financial futures. It helps businesses build caring cultures, individuals plan confidently and entrepreneurs protect what they build.
At ASI, we provide accessible, inclusive, purpose-driven advice to help South Africans make decisions that truly matter through our advisers, platforms and podcasts.
The ASI podcast
ASI is launching a podcast series with Nicolette Mashile, South Africa’s leading voice in financial education. The series features ASI experts and independent advisors discussing a range of topics, including medical schemes, employee benefits, entrepreneurship and wealth creation. See www.asi.co.za/media
