- Executive describes life insurance as a vital financial planning tool
- Says many gaps need to be filled in perception of insurance
- Notes serious risks of delaying taking out insurance policies
There is need to strive more than ever to educate communities all around Botswana on the value of life insurance for themselves and their families, Group Executive Head of Business Development and Stakeholder Management at Botswana Insurance Holdings (BIHL), Thomas Masifhi, has said.
Masifhi was speaking at the Orapa Diamond Mine Golf Challenge Business Expo which took place in Orapa over the weekend.
He said the COVID-19 pandemic, in particular, has brought with it many challenges that are “very much evident” in the insurance sector.
Gaps to be filled
“However, the pandemic also brought with it an opportunity to show Batswana how relevant insurance as an industry is in their lives,” Masifhi notd. “As we are all aware, the perception of insurance in Botswana leaves with it many gaps that need to be filled.”
He stated that there are many misconceptions across the country regarding the need for and value of insurance in everyday life. “We have certainly each done our part as members of this industry in filling these gaps, He said.
“However, there remains much more to be done. The Botswana population is small, yet the majority are without life and health insurance cover. This is in part due to the great fallacy that investing in life insurance cover is a necessity only afforded to the rich.”
Lower income brackets
Masifihi states that many Batswana are unaware of the long-term risks that accumulate by delaying on taking on insurance policies, especially for people remains in lower income brackets. “It is safe to say that in Botswana, more than 70 percent of the people are without life insurance cover,” he noted.
“As an industry, I believe we need to strive more than ever to educate communities all around Botswana on the value of life insurance for themselves and their families.”
He noted that it is the responsibility of the insurance industry at large to educate people on financial matters to ensure that both the banked and unbanked are aware of their rights and services available to them in an effort towards a more financially inclusive society.
“Here in Botswana, the insurance industry is undergoing a fundamental transformation,” Masifhi noted. “Even before the COVID-19 pandemic, new regulations, the introduction of mobile platforms, demands for new skills, increased operational resilience, and focus on sustainability were being introduced into our insurance sector.”
Not only for funerals
Masifhi said there is a vital need to show Batswana that insurance is not only for funeral cover but that life cover in particular is a vital financial planning tool for the protection and building of your legacy.
“It provides a safety net, assurance, peace of mind and indeed comfort and protection,” he said. “It is the cushion for our people when they need it most. We need to develop an even stronger ecosystem conducive for insurance uptake amongst our people so that we may support them better.”