Association of Life Underwriters Botswana discusses plans for future

Own Correspondent

13^th November 2019

The Association of Life Underwriters Botswana (ALUB) on Wednesday introduced its Committee members and shed light on what ALUB will focus primarily on driving to strengthen and align members and key players in the insurance sector.

ALUB Chairperson and Botswana Life Chief Executive Officer(CEO), Ronald Samuels, said strategy touched on six themes as follows: 

1. Review of upfront commissions on investment products;
2. Professionalising the selling of life insurance in Botswana
3. Access to Government electronic biodata registers;
4. Working with the government to improve operational efficiencies that affect the customer
5. Consumer education; and 
6.  Standards for claims experience

Samuels said, “Botswana has more insurance providers in the market than ever before, with 8 in life insurance and even more in non-life provisions. Insurance accounts for more of Botswana’s National GDP than in previous years, with Life contributing to 2.5% of GDP (2019) and short term contributing to 0.7% of GDP.”

He said, “There is certainly an urgent need to come together as the insurance sector to ensure the promotion of best practice and the highest standards of professionalism in life insurance. As the Association of Life Underwriters Botswana, we have an unwavering commitment to adhere to regulatory requirements that guide such practices. This is something which ALUB is passionate about and intends to oversee as we begin a new chapter. Through working together across the insurance fraternity, there is much more that we believe can be accomplished.”

Founded on the 28^th of May 2018, the Association’s Committee comprises captains of industry, including Deputy Chairperson, Lulu Rasebotsa – Liberty Life Managing Director; Secretary, Thebe Modikwa – Old Mutual Managing Director; Deputy Secretary, Motshabi Mokone – Barclays Life Managing Director; and Treasurer, Bilkiss Moorad – Hollard Life Managing Director.  ALUB is mandated with providing holistic guidance on matters of the growth, professionalism and best practice of the local insurance sector. Other key priorities within the mandate of ALUB are:

• To promote integrity of and uphold the regulations governing the Insurance sector;
• To complement and or supplement the functions of the Regulator by acting as a self-regulatory body;
• To make representations on behalf of the Life Insurance industry to the Government, Regulatory bodies, Trade bodies similar associations and bodies and other industries;
• To place the integrity of the Life insurance industry and interest of its clients above any other interest; and
• To contribute or subscribe to bodies with objectives similar to those of the Association.

Best practice in other markets also reveals that through such self-driven bodies, industries stand to grow more significantly and in more sustainable and impactful manners. It is this purpose that served as the impetus for formation of ALUB and its newly defined and crafted strategic approach.

Working with key stakeholders and embracing a truly consultative process will, the Committee believes, be paramount towards truly delivering on the ALUB mandate. In addition, the Committee will work closely with the Insurance Institute of Botswana, represented by its Chairman, Dziki Nganunu, to help move the sector forward. 

ALUB Deputy Secretar Ms. Mokone said, “We are very excited to hit the ground running. Today marks the beginning of what promises to be a fruitful journey for the entire value chain of insurance sector. There is certainly a lot to be done, and much more to look forward to. This is not a journey that can be undertaken in isolation, we have to form a united front, and engage relevant stakeholders such as Government and the regulator, Non-Bank Financial Institutions Regulatory Authority (NBFIRA).”

The need for empowering consumers and end-users of insurance products for mutual benefit of the industry and indeed consumer protection and prosperity remains a true imperative for ALUB. The Committee hopes to make a true and lasting impact during its tenure, against the now approved and accepted strategic imperatives.