Absa Life seeks further market inroads

Staff Writer | Friday April 6, 2012 00:00

Absa Life, one of South Africa's leading long and short-term insurers, entered the Botswana market last year, grasping for a foothold in a market that had been dominated for decades by several well-established entities.

In its first year, Absa Life Botswana targeted 'low hanging fruits,' or 'easier' market segments, launching the Kgomotso Funeral Plan last March after taking over Barclays Bank Botswana's insurance subsidiary. On Tuesday, Absa Life Botswana managing director, Bilkiss Moorad told BusinessWeek that the new kid on the block was ready for bigger targets, with a competitive product offering due to be unveiled in June.

'We were the first to be set up as a greenfield within Africa and we focused on what we could secure, working with the communities and Barclays to establish what was required,' she said in an interview. 'We are now working on a number of financial solutions which we will roll out starting in mid-June.

'In June, the market will see a unique product addressing the needs identified through our consumer groups.

That product will be focused on the premier and prestige customer segments.' Moorad said the product which will not require HIV testing, would provide life cover with sums assured ranging from P50, 000 to P500, 000 while offering affordable premiums. In addition, the managing director said Absa Life is also targeting the corporate sector this year. 'We are looking at working with the corporatesin order to provide them with group risk and group funeral plans and targeting the medium to large scale,' Moorad said.

'We know that every country has its own dynamics and we take the best fit.' Moorad said Absa Life Botswana was in a winning partnership with Barclays Bank Botswana, leveraging on the latter's extensive distribution and retail footprint.

'We want to use the bank as the channel as it has a very strong retail footprint.' she said. 'Customers should experience a seamless process between Absa Life and Barclays Bank Botswana. This is a winning partnership as we have the products in-house and the bank has the distribution.

'In addition, Barclays is very aware of customers' needs and they tell us whether something is going to work or not. They cherry pick and take the best products to roll out.'

The partnership with Barclays has also boosted the subsidiary's market position which is also helped by the parent company's brand power. In South Africa, Absa Life boasts that country's best bancassurance model.

'Our competitors are very established but our strategy is very focused on what our customers' needs are,' she said. 'We have also received positive feedback from brokers saying they believe that or entering this market provides an opportunity to equalize the market.' Last year, Absa Life also launched in Mozambique and is due to establish in Zambia soon.