Underwriters’ body aims to grow insurance sector
ALUB regards protection and prosperity of customers as paramount
Following the election of its new committee, the Association of Life Underwriters Botswana (ALUB) recently engaged key stakeholders to introduce some of the committee members and unpack both the mandate and strategic focus areas of ALUB going into 2020.
The engagement shed light on what ALUB will focus primarily on driving by way of bettering, strengthening and aligning members and key players in the insurance sector.
Led by its chairperson, the CEO of Botswana Life Ronald Samuels, ALUB committee members touched on the six strategic themes of the strategy. The strategic areas are review of upfront commissions on investment products, professionalising the selling of life insurance in Botswana, access to government electronic biodata registers, working with the government to improve operational efficiencies that affect the customer, consumer education and standards for claims experience.
Samuels said “Botswana has more insurance providers in the market than ever before, with eight in life insurance and even more in non-life provisions. Insurance accounts for more of Botswana’s GDP than in previous years, with Life contributing 2.5 percent of GDP (2019) and Short Term contributing 0.7 percent of GDP. There is certainly an urgent need to come together as the insurance sector to ensure 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 28 May 2018, the Association’s Committee comprises captains of industry, including the Managing Director of Liberty Life Lulu Rasebotsa as Deputy Chairperson, and the Managing Director of Old Mutual Thebe Modikwa as Secretary. The Deputy Secretary is the Managing Director of Barclays Life Motshabi Mokone while the Treasurer is Managing Director of Hollard Life Bilkiss Moorad.
ALUB is mandated with providing holistic guidance on matters of the growth, professionalism and best practice of the local insurance sector. Other key priorities are to promote the integrity of the insurance sector and uphold its regulations. ALUB also aims to complement the functions of the Regulator by acting as a self-regulatory body. Its mandate further extends to making representations on behalf of the life insurance industry to the government, regulatory bodies, trade bodies similar associations and bodies and other industries. It aims to place the integrity of the life insurance industry and the interests of its clients above any other interests, as well as to contribute or subscribe to bodies with objectives similar to its own.
All members of the ALUB Committee reaffirmed their unwavering commitment to working together with purpose and passion, ultimately looking to enhance and unlock the potential of what such a body can deliver. Best practice in other markets reveals that through such self-driven bodies, industries stand to grow more significantly and in a more sustainable and impactful manner. It is this purpose that served as the impetus for the formation of ALUB and its newly defined strategic approach. Working with key stakeholders and embracing a truly consultative process will, the Committee believes, be paramount to truly delivering on the ALUB mandate. In addition, the committee will work closely with the Insurance Institute of Botswana, which is represented by its Chairman, Dziki Nganunu, to help move the sector forward.
Said Mokone, “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, hence we have to form a united front and engage relevant stakeholders such as government and the regulator, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA).”
The need for empowering consumers and end-users of insurance products for 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.