Insurance penetration at less than 1%
Staff Writer | Tuesday August 12, 2014 10:41
According to chief executive officer of Old Mutual Botswana, Jack Bekker the low insurance penetration in Botswana and Africa as a continent provides significant opportunities for the industry.
“There is great potential for growth on the African continent, given the low insurance penetration and the expected increase in middle class households.
Short term insurance penetration in Botswana is estimated at less than one percent, with the average for the continent outside South Africa estimated at below three percent,” said Bekker at a ceremony held last week to mark the rebranding of Mutual and Federal (M&F) Botswana to Old Mutual Botswana.
According to the Non Banking Financial Institution Regulatory Authority (NBFIRA) 2013 Annual report, there were twelve primary insurers licensed to underwrite general insurance business as at March 2013. Most insurance business was property market followed by motor insurance with a total written premium of P1.2 billion.
Bekker said the rebranding would not impact on how they do business but will only strengthen focus on growing the Botswana business into the future.
“Our customers can be assured that nothing will change in terms of the products we offer, our staff and the calibre of service they currently enjoy. Old Mutual has built a reputation of integrity and financial stability over its 169 years of existence, and will continue to offer that expertise and trust to our Botswana business and our customers,” said Bekker.
He said their presence in Botswana “is part of our long-term strategy to be the leading financial services provider in Africa”.
The re-branding will see Mutual & Federal (M&F) Botswana trading as Old Mutual Short-Term Insurance effective this month. M&F has been operating in Botswana since 1994 as a sub brand of Old mutual, offering a range of short-term insurance products and services.
As Old Mutual Botswana, the financial services company will continue to offer insurance solutions for businesses, farmers, and individuals through brokers and as well as directly to the public.
Old Mutual is listed on both the London and Johannesburg Stock Exchanges. It has a presence in several territories, including Africa, Latin America and Asia.
The Chief Financial Officer of Old Mutual Africa Mogam Pillay said their re-branding from Mutual and Federal to Old Mutual is in line with our global strategy to consolidate all sub-brands into one strong brand across all the markets in which they operate, including Botswana.
“Our aim is to offer our customers an easy and convenient one-stop-shop over time for all their savings, investment and risk cover needs. And a total brand experience that provides peace of mind and inspires trust and confidence,” said Pillay.