PROMOTION: The lockdown presents an opportunity to research new business and new markets to pursue when it lifts. To assist South African businesses in these difficult times, Who Owns Whom is offering a 50% discount on all industry reports purchased during this period. The 50% discount will be applied on/at checkout.
INDUSTRY REPORTS PUBLICATIONS DATA FEED SERVICES WOWEB CONTACT US
Item added to your cart
The Insurance Industry in Botswana
BY Louise Mitchell
Botswana
29 January 2020
R 14 400.00 (ZAR)  
estimated $ 928.89 (USD) *
Buy Now

The Insurance Industry in Botswana


Unemployment and poverty are cited as the factors that most constrain growth in Botswana’s insurance industry. Short-term insurers in particular report that insurance premiums are becoming unaffordable for consumers as households are highly indebted. Life insurance companies, on the other hand, are launching new products to meet the needs of the large middle- to upper-income market.


Growth Opportunities


The market for insurance in Botswana is relatively small as there are only about 400,000 formally employed adults and there are 23 insurers offering individual and corporate products in life and non-life business. However, insurance penetration is only 2.8%. While this indicates growth potential, growth and competition depend on job creation and the success of the small business sector.


South African Presence


South African insurance companies having a significant presence through shareholdings. Ultimate shareholding of eight of the 23 licensed general, long term and reinsurers are owned by South African companies and only three of the insurers are owned by Botswana companies. Sanlam is the major South African player as the majority shareholder in the dominant player Botswana Insurance Holdings Limited (BIHL) and an indirect shareholder in Continental Reinsurance Company.


Report Coverage


This report focuses on life insurance, reinsurance and short-term insurance, including travel insurance, in Botswana. There is comprehensive information on the size and state of the industry, companies operating in the sector, their total assets and gross premiums (2018 figures) and factors that influence the insurance industry. There are profiles of 26 companies including the dominant player BIHL, the only major insurance company listed on the Botswana Stock Exchange and Letshego Holdings, a player in the microinsurance sector, which is also listed. Other profiles include Botswana Insurance Company, which notified Botswana’s Competition Authority of the proposed acquisition of BIHL Insurance Company Ltd, trading as Legal Guard, a BIHL subsidiary.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
3.1. Industry Value Chain 5
3.2. Geographic Position 6
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 11
5.1. Local 11
5.1.1. Corporate Actions 12
5.1.2. Regulations 12
5.1.3. Enterprise Development and Social Economic Development 15
5.2. Continental 15
5.3. International 19
6. INFLUENCING FACTORS 22
6.1. Economic Environment 22
6.2. Financial Inclusion 23
6.3. HIV/AIDS 25
6.4. Information Technology 25
6.5. Labour 26
6.6. Cybercrime 26
6.7. Environmental, Social and Governance (ESG) 27
6.8. Climate Change and Extreme Weather 27
7. COMPETITION 28
7.1. Barriers to Entry 29
8. SWOT ANALYSIS 29
9. OUTLOOK 30
10. INDUSTRY ASSOCIATIONS 31
11. REFERENCES 31
11.1. Publications 31
11.2. Websites 32
APPENDIX 1 33
Classes of General Insurance 33
APPENDIX 2 35
Classes of Long-term Insurance 35
APPENDIX 2 36
Summary of Notable Players 36
COMPANY PROFILES 39
AFRICAN BANKING CORPORATION OF BOTSWANA LTD 39
ALPHA DIRECT INSURANCE COMPANY (PTY) LTD 43
B.I.C.B LTD 45
BANK GABORONE LTD 47
BARCLAYS INSURANCE SERVICES (PTY) LTD 49
BOTSWANA INSURANCE COMPANY LTD 51
BOTSWANA INSURANCE HOLDINGS LTD 54
CONTINENTAL REINSURANCE COMPANY LTD 57
EMERITUS REINSURANCE COMPANY (PTY) LTD 59
FIRST NATIONAL INSURANCE AGENCY (PTY) LTD 61
FMRE PROPERTY AND CASUALTY (PTY) LTD 62
GETBUCKS LTD 64
HOLLARD INSURANCE COMPANY OF BOTSWANA (PTY) LTD (THE) 66
HOLLARD LIFE ASSURANCE COMPANY OF BOTSWANA (PTY) LTD 68
LETSHEGO HOLDINGS LTD 70
LIBERTY GENERAL BOTSWANA (PTY) LTD 74
LIBERTY LIFE BOTSWANA (PTY) LTD 76
METROPOLITAN LIFE OF BOTSWANA LTD 78
OLD MUTUAL FINANCIAL SERVICES BOTSWANA (PTY) LTD 80
PHOENIX OF BOTSWANA ASSURANCE COMPANY (PTY) LTD 82
SESIRO INSURANCE COMPANY (PTY) LTD 84
STANBIC BANK BOTSWANA LTD 86
STANDARD CHARTERED BANK BOTSWANA LTD 90
SUNSHINE INSURANCE COMPANY OF BOTSWANA (PTY) LTD 94
WESTERN INSURANCE BOTSWANA (PTY) LTD 96
WESTERN LIFE INSURANCE BOTSWANA (PTY) LTD 98