NEWS & OPINION
31 July 2019
Motsepe launches life insurance company
B
illionaire Patrice Motsepe’s investment holding company, African Rainbow Capital (ARC), has launched a life insurance company in partnership with Sanlam, called African Rainbow Life (ARL), that will compete against South Africa’s biggest insurance companies. ARL is a joint venture between Sanlam Life Insurance Limited (51%), African Rainbow Capital (ARC) Financial Services (26%), with the balance (23%) held by a management consortium made up of a staff, community and management trust. Combined, this shareholding accounts for a significant black ownership. ARL’s primary focus will be on providing costeffective life cover for lower- to middle-income black South Africans, which will include death, dread disease and disability cover, as well as a cashback option. Additional products on offer include funeral cover and savings, investments and retirement products, as well as group benefits. The company says it intends offering “easily understood and affordable products” that are culturally relevant and meet the very specific needs of the target market. Patrice Motsepe, Chairman, African Rainbow Capital
“Our customers are typically low- to middleincome earners who historically have had little access to sound financial advice or cost-effective financial services products around which they can effectively plan for their financial futures,” says Chief Executive Officer, Bongani Madikiza. African Rainbow Life, he adds, intends to build lasting connections by providing clients with support on their financial journey. “This will be done via a basket of comprehensive yet cost-effective financial solutions, with which each customer can begin to create their own generational wealth.” Madikiza was previously CEO of Lion of Africa Insurance and Managing Director of the Mass Market Cluster and Corporate Businesses at Old Mutual South Africa. “As a key shareholder in African Rainbow Life we have full confidence in the management team to offer clients something unique,” says Dr Johan van Bongani Madikiza, Zyl, co-CEO of ARC. “Given the management team’s CEO, African extensive experience in this segment of the market, Rainbow Life we expect African Rainbow Life to develop into a formidable contender in this market segment.” Trading under the ARC brand, Van Zyl adds that sure that proper procedures are followed,” ARL says. ARL is a key development as it is ARC’s first foray Customer information is captured by the adviser on into the retail space. “Up to now, the ARC brand a digital app, which provides a financial needs analysis has solely been used in the institutional space. As and prompts questions regarding their future needs. an empowerment investment holding company, we The adviser guides the customer through this process primarily conduct business on a B2B basis. With and helps them to understand both their current the launch of ARL, consumers will now have their financial situation as well as their future financial first direct experience with needs. The customer’s personal our brand. We trust that information is run through a ARL’S PRIMARY FOCUS limited underwriting process consumers’ experience will WILL BE ON PROVIDING if they select the Life Cover be characterised as one of responsible business practices, Product, without any medical COST-EFFECTIVE LIFE as well as excitement as we aim examinations being required, COVER TO LOWER TO to positively impact the lives of enabling the adviser to provide an many people.” MIDDLE INCOME BLACK immediate policy quote. The company has set clear In addition to work site SOUTH AFRICANS parameters on where its advisers, customers are also advisers can sell and service customers. All policy supported by a call centre and a website. Once sales take place at a work site or through groups policies are approved, customers are messaged with and are conducted face to face by a financial adviser confirmation and emailed a policy document. “Every who acts as a key account manager. The adviser is customer is issued with an eight-digit insurance card responsible for building relationships, new policy containing all their necessary policy numbers, leaving sales and servicing existing customers. “This enables them with a tangible reminder of the policy, as well as the company to monitor adviser behaviour and be details on how to contact the company,” ARL says.
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