24 Sep 2015

First citizen owned life insurance Bramer Life Botswana has transformed to Bona Life. 

This transition follows the scandals associated with its associate, Bramer Banking Corporation Limited in Mauritius which tarnished Bramer Life Botswana.

The scandal was said to entail a large-scale scam in the shape of ponzi scheme estimated at over P6.5 billion, which resulted in the appointment of Mr Nigel Dixon-Warren as a statutory manager for Bramer Life Botswana in April, by Non-Bank financial Institutions Regulatory Authority (MBFIRA).

Speaking during the launch of Bona Life insurance which was held in Gaborone recently, the second president of Botswana Sir Ketumile Masire said, the insurance industry has over the past 40 years developed rapidly, stating that currently it is worth P2 billion in annual premiums.

He noted that 80 per cent of the market is held by the oldest company Botswana Life, whereas the remaining 20 per cent is shared by the remaining companies. 

He however said, there is ample opportunity for Bona Life insurance as a citizen entrant to significantly reduce the dominance by providing relevant financial solutions that resonate with Botswana.

Sir Ketumile Masire said as the country draws towards the end of vision 2016, there has been an outstanding performance of the financial services sector in Botswana, for complementing the government’s drive to achieving prosperity for all. 

He said, though the global economic trends continue to exert strain on economies worldwide, there is the need for individuals to work with governments to make adequate provision for their own future through viable enterprises, such as life insurance, pensions and savings.

Sir Masire said the level of household debt in Botswana remains relatively high compared to global trends whilst the level of penetration of the Life Insurance industry remains low at four per cent GDP adding that this indicates that Batswana continues to rely on debt as a way of funding their lifestyles. 

He encouraged Batswana to embrace contractual savings, such as life insurance, investments, annuities and pensions that create wealth to secure their lives and those of future generation.

He noted that there is need to review consumer patterns with regard to rising unemployment rate, mounting economic pressures as well as downsizing and retrenchments on the rise.

“We need to embrace and grow the informal sector, support our SMEs, create job opportunities and develop young entrepreneurs who will guarantee us a secure future for our grandchildren,” he said.

For her part chief executive officer of Bona Life Ms Regina Sikalesele-Vaka said, with the birth of Bona Life, Life insurance company industry in Botswana is about to witness “the greatest change of all its 40 years.” She noted that Bona Life will be a pacesetter that will go where others have not been.

She stressed that Bona Life will be closely involved with different communities to understand how they function as well as building sustainable relationships with them. 

She said Bona Life will start off, by aligning itself to its new shareholders by redirecting its focus to retirement products to prepare young people for future retirement.

 

“In response to the changing economic realities of high consumerism and indebtedness in Botswana, there is an urgent need for younger generations to start saving for their retirement as soon as possible,” she said. Ends