BIHL profits drop 24% on higher COVID-19 claims

'Never seen before' mortality weighed on the returns from Botswana Life, the BIHL group’s life insurance business which is traditionally a key revenue driver, executives told BusinessWeek. Since the onset of COVID-19 last March, the group has paid out more than 12,600 claims, fuelled by the fact that many of its clients hold up to four policies each.

“Our interventions include firming of mortality and persistency assumptions and a review of underwriting protocols including pricing,” BIHL group CEO, Catherine Lesetedi told BusinessWeek. “It is important to underscore the fact that a successful vaccination rollout is what will give businesses confidence and certainty on risk management approaches.”