BotswanaPost partners Hollard to offer insurance services
Keikantse Lesemela | Thursday April 3, 2014 11:01
The joint venture targets un-banked citizens in informal employment to access life insurance services through the parastatals’ wide national footprint of 125 post offices countrywide.
Speaking at the product launch in Gaborone yesterday, Hollard Life Botswana acting chief executive officer, Modiri Phuthego stated that the intention was to meet the needs of the emerging market of traditionally un-banked citizens in informal employment.
“The joint venture harnesses Hollard Life Botswana’s expertise in delivering affordable funeral insurance and the reach of Botswana Post’s extensive branch network, thereby facilitating greater insurance penetration,” said Phuthego.
Speaking of the Motshidisi funeral policy, Phuthego stated that, “It is an affordable, reliable, convent and innovative funeral cover protecting families against unexpected expenses when faced with the loss of a loved one, the policy provides a cash pay-out when a family member dies to use towards the associated high funeral costs,” he said.
Motshidisi funeral policy requires no medical examination or bank account. The main member aged between 18 to 64 years is offered cover for life as long as the premiums are paid. The policy also covers citizens of Botswana or permanent residents living within the country and it is offered in four types starting with P5,000 family funeral plan for P27,95 per month and escalating to the P15,000 family funeral plan which includes parent cover and a cash-back option for P195,95.
The partnership will also transform the traditional insurance distribution model by boosting the access Batswana have to affordable financial and insurance products. Many people currently have difficulties in accessing these products or no access at all. Hollard Life Botswana will underwrite the insurance products; provide policy administration support and handle the claims administration while BotswanaPost’s national branch network will serve as the distribution channel through which customers purchase the insurance.
A wholly owned subsidiary of Hollard Insurance South Africa, offers long term insurance products including funeral and credit life. BotswanaPost operates 125 post offices nationally.
BotswanaPost CEO, Pele Moleta said the parastatal aims to diversify its services to communities, including offering internet connections within its sites and the initiative is a means by which to achieve that goal. “We want to broaden our services and it is important that we continue to broaden these services as we broaden them”, said Moleta.
In his note, Nick Kohler, Hollard Group South Africa CEO said partnering with the national post office makes real sense due to the fact that little or no new infrastructure is require to facilitate insurance sales.
“Savings from these cost efficiencies can be passed onto the consumer making for a more attractive product proposition. Post offices also tend to be geographically widespread, which means that more people are able to access products available at these points”, said Kohler. Hollard Life Botswana already offers products through retailer group Edcon (which Includes Edgars and Jet stores) and is looking to expand its reach with a similar arrangement with other retailers.