An innovative joint venture between Hollard Life Botswana and Botswana Post is expected to bring funeral and parcel insurance products within reach of non-traditional markets.
Hollard Life Botswana acting Chief Executive Officer (CEO) Modiri Phuthego said during the launch of Motshidisi funeral plan that given Botswana Post’s substantial national footprint, the initiative will reach the emerging market of traditionally unbanked citizens in informal employment.
He also pointed out that the joint venture harnesses Hollard Life Botswana’s expertise in delivering affordable funeral insurance and the reach of Botswana Post’s extensive branch network, thereby facilitating greater insurance penetration.
“The partnership will also transform the traditional insurance distribution model by boosting the access Batswana have to affordable financial and insurance products. Many currently have difficulties in accessing these products or no access at all,” said Phuthego.
He added that the move is expected to generate a significant number of sales adding that effective April 2, it sees Hollard Life Botswana underwrite the insurance products; provide policy administration support and handle the claims administration while Botswana Post’s national branch network will serve as the distribution channel through which customers purchase the insurance. He is optimistic that in the medium-term, the roll-out of additional products, including other life insurance, will further boost market share. Phuthego pointed out that 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 that ideal.
“It 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 our social aim for being a catalyst for positive and enduring change,” he said.
Phuthego stated that as a newcomer to the country’s insurance industry, innovation will remain the key to penetrating the market. As a market first, this joint venture ticks that box and boosts financial inclusion as well.
For his part Botswana Post Chief Executive Officer Pele Moleta highlighted that the parastatal aims to diversify its services to communities, including offering internet connections within its sites. He added that the initiative is a means by which to achieve that goal. He also explained that potential policyholders can visit any Botswana Post branch, where they can pay their initial premium and retain their till slip. He added that the policy document is included in the pack received and ongoing premiums can then be paid either in cash at Botswana Post branches or via debit order.
“The Motshidisi funeral policy requires no medical examination or bank account. A main member aged 18-64 years is offered cover for life as long as the premiums are paid. Each sale has an automatic 30-day cooling off period and there is no waiting period for accidental deaths,” he said.
Moleta added that however, natural deaths will only be covered after a six-month waiting period. He pointed out that everyone covered by the policy has to either be a citizen of Botswana or a permanent resident living within the country.