06 Apr 2014

An innovative joint venture between Hollard Life Botswana and Botswana Post has brought funeral and parcel insurance products within reach of non-traditional markets and potentially pitched the rapidly-growing insurance group towards securing significant market share.

Speaking at the launch of the Motshidisi family funeral plan on Wednesday, April 3, Hollard Life Botswana acting chief executive officer, Mr Modiri Phuthego said given Botswana’s substantial national footprint, the initiative would reach the emerging market of traditionally unbanked citizens in informal employment.

He said the Motshidisi family funeral plan is an affordable, reliable, convenient and innovative funeral cover protecting families against unexpected expenses when faced with the loss of a loved one.

The policy provides a cash pay-out when a family member dies to use towards the associated high funeral costs, effectively delivering on social aim for being a catalyst for positive and enduring change, he said.

Mr Phuthego noted that it requires no medical examination or bank account adding that a main member aged 18-64 years is offered cover for life as long as the premiums are paid.

Each sale, he said, has an automatic 30 day cooling off period and there is no waiting period for accidental deaths.

However, natural deaths would only be covered after six months waiting period, he said.

Furthermore, Mr Phuthego said everyone covered by the policy has to either be a citizen of Botswana or a permanent resident living within the country.

The valid claims would be paid within 48 hours of Hollard receiving the required claims documents, he said.

Potential policyholders can pay their initial premium at any Botswana Post branch while ongoing premiums can be paid either in cash at Botswana Post branches or by debit order, he said.

The partnership, Mr Phuthego said would transform the traditional insurance distribution model by boosting the access Batswana have to affordable financial and insurance products, as many currently have difficulties in accessing the products or no access at all.

The move, he said, is expected to generate a significant number of sales, adding that Hollard Life Botswana underwrite the insurance products, provide policy administration support and handle the claims administration while Botswana Post’s national branch network serves as the distribution channel through which customers purchase the insurance.

He said the company is committed to establishing social change in Botswana by making a positive difference through the business it conducts and the Motshidisi funeral policy dovetails with the ideal.

As a newcomer to the country’s insurance industry, innovation would remain the key to penetrating the market, he added.

For his part, Botswana Post chief executive officer Mr Pele Moleta said the parastatal aims to diversify its service to communities, including offering internet connections within its sites and the initiative is a means by which to achieve that goal.

A wholly-owned registered subsidiary of Hollard Insurance South Africa, Hollard Life Botswana is a registered long term insurance company focusing on simple long-term insurance products including funeral and credit life.

The company already offers products through retailer group Edcon which includes Edgars and Jet stores and is looking to expand its reach with a similar arrangement with other retailers. ENDS