The Botswana Insurance Company’s history is steeped in local ownership and investment, ever since its incorporation on the 12th August 1975 for the purpose of dealing in general and life assurance business. Following new management BIC aspires to be the insurer of first choice in its market of operations, providing services above and beyond the expectations of its growing list of customers.
The Botswana Insurance Company’s history is steeped in local ownership and investment, ever since its incorporation on the 12th August 1975 for the purpose of dealing in general and life assurance business. Following new management BIC aspires to be the insurer of first choice in its market of operations, providing services above and beyond the expectations of its growing list of customers.
Its incorporation in mid-1975 makes Botswana Insurance Company Limited the oldest short term insurance company in all of Bostwana, dealing originally in both general insurance and life assurance. The company today operates out of its two branches in Gaborone, the head office situated at the Fairgrounds, which caters for the region south of Mahalapye and Francistown, and the other on St. Patricks Street, serving the northern part of the country. At its inception, the ownership of the Company was divided between two parties, with Botswana Development Corporation holding 51% of the shares and J.H. Minet & Company Limited of London the remaining 49%. J.H. Minet then sold its 49% holding to St Paul (UK) Ltd, a subsidiary company of The St Paul Incorporation of Minnesota USA, in 1985, while in 1991 the new company Botswana General Insurance Limited was formed, with a focus on short term insurance. This followed the restructuring of Botswana Insurance Company to comply with The Botswana Insurance act of 1987.
Botswana Life Insurance Limited was thus born, while Botswana Insurance Holdings Limited was listed on The Botswana Stock Exchange as a holding company for BGIL and BLIL. In 1998, BGIL was sold out of the holding company and became a wholly owned subsidiary company of St Paul (UK) Limited. It was at this point that its name was changed to Botswana Insurance Company, and following suit in 2003 Teledimo (Pty) Ltd bought BIC from St Paul. Zimnat Lion Insurance, a Zimbabwean based insurance company was awarded the management contract, and as a result has ever since been providing the technical expertise, strategy and management consultancy to Botswana Insurance Company. BIC has the capabilities to ensure almost anything which might require it – from vehicles and houses, valuables and household goods, right through to aircraft and businesses. BIC is the only AA- rated insurance company in Botswana, which is the highest national rating a short term insurer in Botswana can currently attain as accorded by Credit Global Ratings.
Botswana Insurance Holdings Limited (BIHL) Group continued to perform well in a seemingly uncertain market environment, as it announced at the end of last year. “Despite the uncertain economic outlook and growing direct competition, we remain optimistic about our future prospects. We aim to take full advantage of the opportunities in the economy,” stated Chairman of BIHL Group, Batsho Dambe-Groth. The Group registered profits after tax of P238,187 million, with its embedded value also seeing an increase of 10% to P3.6 billion. Operating profit before tax increased by 22% to P151 million, coupled with a small 3% growth in its Assets under Management. Net premium income and fee income both saw significant augmentation too, by 19% to P55.1 million and by 15% to P997.3 million respectively. BIHL Group CEO Gaffar Hassam spoke of the success this represented in today’s market. “The growth in the business sector credit could be seen as a sign of improvement. In light of this business climate, we are satisfied with the half year financial results as a foundation upon which to build throughout the remainder of the year.”
An insurer of first choice then since 1975, BIC’s teaming up with Orange Botswana will allow its customers to make their premium payments through the Orange Money mobile money service. This service is available to all those BIC customers who also subscribe to Orange Money, and who will now be able to pay their premiums directly from their Orange Money accounts through their mobile phones. It is a partnership focussing on providing BIC customers the convenience of paying their premiums from anywhere, at any time that may suit them. Orange Money offers easy-to-use and secure mobile financial services and transactions, while Orange Botswana is a leading mobile operator and provider of telecommunication services in Botswana, serving more than one million customers countrywide on a GSM/GPRS/EDGE/3G+/Wimax and 4G network.
In a similar vein was BIC’s announcement earlier this year of an exciting and potentially very valuable partnership with Standard Chartered Bank (SCB). The partnership will, conveniently for SCB clients, provide innovative solutions in line with what has been termed the evolution of Bancassurance. Together with BIC, SCB will be providing these convenient and easily accessible insurance solutions to its many clients. Commenting on the launch, Johann Claasen, MD of Botswana Insurance Company Limited, had the following to add: “For a while now, insurance in Botswana continues to be difficult to obtain for the vast majority of people. Through this Bancassurance partnership with Standard Chartered, we will be able to provide useful and relevant general insurance products to Standard Chartered Bank clients. We strongly believe this partnership will help us deliver our commitment to our society, shareholders and regulators.”
Adding to these sentiments, of opening up new possibilities and avenues of advice for these valued customers, Moatlhodi Lekaukau, CEO, Standard Chartered Bank of Botswana stated: “Bancassurance in Standard Chartered has evolved to ensure that the distribution partnership with Botswana Insurance Company provides our esteemed clients a selection of general insurance offerings that touch on the protection of their assets when they may not necessarily be in a position to do so. They will help our clients plan and make provision for the unexpected with minimum financial strain.” SCB & BIC have developed this opportunity while ensuring at all times that the right strategic affiliation is formed with the most important aspect in mind, the customer. Claasen detailed this focus on ease of operation: “The focus going forward is to provide complete insurance services under the ‘one roof concept’ to Standard Chartered Bank clients,” further adding that this future thinking approach to doing business is just the first step toward transforming banking and insurance.