Going MiWay
One of the youngest financial service brands in the market, MiWay, is on track in terms of growth targets as well as premium income projections after 18 months. This has been achieved despite economic pressure and a very competitive local insurance landscape.
Rene Otto, CEO of MiWay, says, “The slow-down in car sales certainly affected our new business volumes for the first part of the year, however we are satisfied with our growth and the overall health of the business. More exciting is that we are seeing the first signs of a rebound and are ready to capitalise on this expected growth phase.”
He added that the business was firmly on track to reach its break-even target in mid-2010. “The business is only 18 months old, making it one of the youngest financial service brands in this market, and to reach break-even in mid-2010 would be a great feat for the business (and management team). We are in line in terms of growth targets as well as premium income projections.”
MiWay's slightly quirky, but always clever branding has also been well received by the public. The brand strategy - which is ongoing - as well as the service culture within the organisation is the key success factors here.
The success of the strategy is perhaps best reflected on independent consumer activist website, hellopeter.com. Here, the company has a particularly high compliment ratio - especially when compared to brokers and insurance companies - despite short-term insurance being largely regarded as a grudge purchase in the consumer market.
Otto believes this is a direct effect of MiWay's transparent approach. “When we launched, we invited clients to share their experiences, good or bad, on our website. This has allowed us to respond quickly to bottlenecks and other problem areas, resulting in a service culture. Our clients appreciate the fact that we don't hide our mistakes and that we are clearly committed to solving and preventing weaknesses.”
Earlier this year MiWay became the first company to offer a motor insurance product where the premium is determined by the driving behaviour of the client. According to Otto, the growth pains normally associated with an innovation such as MiDriveStyle, were less than expected. He remains optimistic that MiWay has embarked on an initiative that will affect the way motor insurance rating will be done in future.
MiWay's initial offering includes short term insurance, motor warranty, credit life and home loans but there are long-term plans to extend this to a complete array. Centriq Insurance Co Ltd. underwrites all insurance products - visit www.miway.co.za for more details.
