This initiative is in line with the company's strategic vision to grow its market share in the LSM 1-5 categories, as well as demonstrating its commitment to addressing the need of developing financial awareness and usage of insurance products.
“As a company with a long history in this country we believe that we have an important role to play in helping all South Africans protect the assets they have worked hard to accumulate,” says Keith Kennedy, the company's MD.
“We have been particularly encouraged by the large uptake of bereavement and banking products, and we are confident that there is a huge opportunity to deliver real value in this market.”
Says Kgomotso Lekola, GM (New Markets). “Less than 2% of people in LSM 1-5 have short-term insurance. Insurance 4 All aims to address this imbalance.”
The product also provides an answer to the need for simplicity and affordability in an insurance product. Cover for the policyholders' belongings and home is available from only R21 per month and customers have the choice of insuring between one and six rooms of a brick-and-mortar house or specifying the amount of household content cover depending on their individual circumstances.
Furthermore, the product offers R50,000 liability cover, free bereavement cover, and a claims excess of only R100.
Distribution of the new product will take place through the Mutual & Federal call centre, community based Nedbank Mobile Sales Teams, and will also be augmented through partnerships with stokvels as well as local community members who will be trained to act as distributing agents.
“We believe that the community model is sustainable because of its focus on skills development, job creation, and enterprise development. We have no doubt that this approach will entrench the Mutual & Federal brand in the market,” says Mokaedi Dilotsothle, GM (Marketing & Strategy) at Mutual & Federal.
