Botswana Life Insurance Limited (BIHL) has called for the need to shape the insurance industry in a purposeful and deliberate manner.
Speaking during the African Insurance Organisation (AIO) life seminar recently, BIHL executive head, Broker Division Moletlanyi Tshosa said the insurance industry locally has evolved and grown tremendously in the last few decades hence the need for it to be shaped.
“The industry has evolved with more entrants into the market, more solutions existing to accommodate the increasing and increasingly diverse needs of customers and clients, and the role of technology becoming increasingly visible and apparent,” he said.
According to Tshosa, running parallel to this is that the consumer has evolved too. He said the fact is that spending power across the country remained restricted, and the inequality gaps persist no matter how one looked at it.
“In addition to increased household debt, we face issues of access, with low rates of financial literacy, poor though improving financial inclusion, and the discrepancy between what those in urban centres are able to accomplish by way of consumption of insurance solutions as compared to those outside of the urban peripheries, this being in villages and more remote areas.
He said as an industry, they are facing a veritable identity crisis, which needs to be changed. He also called for the disposal of any misconceptions that continue to breed.
Botswana has more insurance providers in the market than ever before. Insurance accounts for more of Botswana’s National GDP than in previous years, with Life contributing to 2.5 percent of GDP (2019) and short term contributing to 0.7 percent of GDP.
“Not only do we have more players in the market, but the quality and stature of those businesses is great.
“Homegrown as well as internationally renowned businesses and brands are fast establishing themselves as true partners in the industry, and true partners to the end-consumer,” he said.
As the custodians of the industry, he called for the need to work together towards its development and sustainability.
We stand on the precipice of profound change, growth, professionalism and best practice.