3 minute read
Motsepe launches life insurance company
Billionaire 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 Zyl, co-CEO of ARC. “Given the management team’s extensive experience in this segment of the market, we expect African Rainbow Life to develop into a formidable contender in this market segment.”
Trading under the ARC brand, Van Zyl adds that ARL is a key development as it is ARC’s first foray into the retail space. “Up to now, the ARC brand has solely been used in the institutional space. As an empowerment investment holding company, we primarily conduct business on a B2B basis. With the launch of ARL, consumers will now have their first direct experience withour brand. We trust that consumers’ experience will be characterised as one of responsible business practices, as well as excitement as we aim to positively impact the lives of many people.”
The company has set clear parameters on where its advisers can sell and service customers. All policy sales take place at a work site or through groups and are conducted face to face by a financial adviser who acts as a key account manager. The adviser is responsible for building relationships, new policy sales and servicing existing customers. “This enables the company to monitor adviser behaviour and be sure that proper procedures are followed,” ARL says.
Customer information is captured by the adviser on a digital app, which provides a financial needs analysis and prompts questions regarding their future needs. The adviser guides the customer through this process and helps them to understand both their current financial situation as well as their future financial needs. The customer’s personalinformation is run through a limited underwriting process if they select the Life Cover Product, without any medical examinations being required, enabling the adviser to provide an immediate policy quote.
In addition to work site advisers, customers are also supported by a call centre and a website. Once policies are approved, customers are messaged with confirmation and emailed a policy document. “Every customer is issued with an eight-digit insurance card containing all their necessary policy numbers, leaving them with a tangible reminder of the policy, as well as details on how to contact the company,” ARL says.
Bongani Madikiza, CEO, African Rainbow Life
