The Chief Executive Officer of the newly established short-term insurance company, Sure Insurance, John Haenen has said the quality of reinsurance in Botswana needs to be improved.
Speaking at a media briefing this past week, Haenen said that there are only two reinsurance companies in Botswana, none of which are citizen owned.
He said that the two companies are Zimbabwean owned. He added that the quality of reinsurance is susceptible to any business in the Botswana market. Haenen said that they are, however, looking into improving the situation.
He also said that they still have two more additional phases to go before they can put the reinsurance platform in place. He pointed out that they will be adding functionality but not just for the public but for brokers as well to enable them to have direct access. Still on reinsurance, he also talked about the Sure Insurance’s sub divisions.
He said that the General and Specialist sub divisions will become equal and their profit contribution will be the same.
Haenen talked about the standing of the company and said that they are still short of labour and are in the process of recruiting. He said that there are limited people who have training in dealing with short term insurance.
He highlighted that they have to rely on South Africa, Kenya and India for training but the process is very expensive. He added that apart from the expenses the countries also train according to their markets, which are a disadvantage because countries have different markets.
He added that another disadvantage is that Botswana does not have an Insurance qualification and the qualification is only available in the United Kingdom, Australia and South Africa. Instead of sending out their employees to these countries, Haenen said that they are working on developing an in-house training programme.
He said the in-house training will be more suited for the local market and cost effective as compared to sending employees to study elsewhere then get other companies snatching them.
Apart from the other logistic, Haenen says that so far the company is doing good because there is a space in the market. He added that the response from the broking fraternity has been awesome.
Sure Insurance is a wholly Botswana Insurance Holdings Limited (BIHL) entity that received a financial start up of P25 million.