Old Mutual aims to shake local insurance industry
Staff Writer | Thursday March 23, 2017 16:22
Speaking at the launch in Gaborone recently, Old Mutual Botswana Life managing director, Thebe Modikwa said he believes there is a gap in the current life insurance market in Botswana, which should be catered for.
“We believe that life insurance should be more than just funeral expenses and the elaborate sending off of a loved one but that it should also be a tool for preserving wealth and ensuring that the needs of dependents left behind are provided for,” he said. While there are currently eight Life insurance companies in Botswana serving a population of approximately two million people, Modikwa said the market is essentially an oligopoly. He points to Botswana’s regulator NBFIRA’s Annual Report, which shows that of these eight life insurers, the top two dominate 87.5% of the market.
He said a major priority for Old Mutual Botswana Life would be to shift public perception of life insurance from a simple funeral policy and short-term goal, to a holistic tool that can be used to preserve wealth and give the next generation a better start in life. He added that many Batswana dream of a viable business and often it is not a lack of initiative that stops them from realising this dream, but rather the lack of capital or sufficient safety net – something that a life policy from a previous generation could provide. “We want to instil a culture of purchasing life insurance policies as an effective mechanism for ensuring that the future generations can be equipped to be daring in their life choices. We want to enable positive futures to the Botswana market,” said Modikwa.
Old Mutual has been present in the country since 1994 having originally opened its doors as Mutual & Federal, before rebranding in 2014 as Old Mutual Botswana.
Chief executive officer for Old Mutual Africa, Jonas Mushosho said the rebrand formed part of Old Mutual’s R5billion expansion plan into Africa so that it could effectively service the continent’s growth and its people.
He said the short-term insurance business originally entered the Botswana market when the need became apparent that household and business assets required sufficient cover. “As the cost of living increased and household incomes became strained, the importance of safeguarding customer assets became critical to ensuring peace of mind, and the ability to operate a business.
“Given Old Mutual’s wide range of tried and tested insurance products for business, farmers and individuals, we knew we could customise these to deliver maximum benefit for the Botswana market.”
Mushosho said based on this success, Old Mutual now seeks to safeguard the people of Botswana’s future. “The launch of the life business marks a key milestone in Old Mutual’s long-term strategic plan for Botswana as it reaffirms our commitment to being a positive contributor to Botswana’s national development plan, whose current theme is “Inclusive Growthfor Realisation of Employment Creation and Poverty Eradication”.
“With a brand spanning over 170 years, we are confident that the Old Mutual Botswana Life Insurance Company will embody the group values of integrity, respect, accountability, pushing beyond boundaries and ultimately enabling positive futures.”