In the company’s annual report ending 31 March 2005, Vaka said “a vital element in being client-focused is pricing”.
The industry has in recent times come under scathing attack over allegations that firms participating in the market are colluding to set up exorbitant prices. Vaka believes that transparency and value for money are key to ensuring the insurance industry continues to play an important role in encouraging long-term saving and financial security for families.
For her company’s part, she said “Botswana Life is actively working with intermediaries to structure charges that are fair for all industry participants and that offer value to clients”.
For the year under review, the managing director said the largest long-term insurance company in the country continued to record impressive premium income, rising by 8 percent to P527 million. The claims paid, she revealed, amounted to over P158 million. The insurance company also recorded growth in new premium income of 3 percent to stand at P297 million and single premium income increased by 15 percent to P230 million. Share capital and reserves shot up by 16 percent above the previous year’s results to P471 million.
“The company is well capitalised and appropriate capital management policies are in place,” she said.
Despite the slowing economy, she said her company managed to achieve the impressive results.
“These satisfactory results were achieved against a slowing economy, rising unemployment, the impact of AIDS and increased competition,” she explained.
“While we are proud of this performance and the efforts made by our people to achieve it, we are not complacent because we know the pressures we faced in the review period will only intensify,” she said.
It is estimated that the total insurable population is about 180,000 and Botswana Life has the largest market share of about 100,000 policyholders. In order to remain a dominant force in the ever-increasing competitive and fast becoming sophisticated market, Vaka said it is vital to increase the level of service.
“That demands an upgrade of our processes and technology, in the skills and management of our people and our ability to understand what our customers want. It means we have to change our focus from being policy-driven to being customer-centric,” hence a need for restructuring of the price mechanism.
