LIDWALA INSURANCE COMPANY

LIDWA LA I NSUR AN C E C O M PA N Y

Bringing alternative risk transfer solutions to Swaziland www.lidwalainsurance.com

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FIRST Choice SWAZI’S

Provider of Short-Term Insurance Lidwala Insurance Company has recently launched several new micro insurance and ART solutions into the Swazi market with the hopes of growing its market share and cementing ties with local clients and brokers Writer: Emily Jarvis • Project Manager: Callum Philp ith the Swazi insurance industry still very much in the developmental stage, locally-owned short-term insurer, Lidwala Insurance Company has taken an opportunistic approach to securing future growth in the sector and the financial products required that offer affordable and innovative risk transfer solutions to the Swazi economy.

By addressing the shortfalls in the short-term insurance industry, Lidwala has been able to introduce a significant number of new insurance products to the local market – namely in the personal, agricultural, travel, motor and alternative risk transfer (ART) segments - while also making

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improvements to its conventional product offering in a bid to stand out from the increasing competition.

Since opening its doors in 2009, backed by strong capital and technical backgrounds, Lidwala’s deep-rooted philosophy to seek out the best shortterm insurance solutions for customers has boosted the Company’s reputation in recent years; becoming the firstchoice provider for alternative risk transfer solutions in the country.

“We pride ourselves on our flexibility, efficiency, reliability and uphold strong business ties with all our stakeholders. Driven by a team of innovative, young, agile and technically-sound staff, we adopt a customer-centric approach and offer a

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Introducing a significant number of new insurance products to numerous local market segments

tailored product solution for our clients and brokers,” notes Alfred Madondo, General Manager of Lidwala Insurance Company.

A recent report found that Swaziland’s short-term insurance industry is worth approximately E550 million. In line with these findings, Lidwala has been keen to capitalise on the growing popularity of microinsurance among the low-income public; broadening its clientele and strengthening growth in lower-valued assets. However, the Company’s ART solutions remain at the forefront of its focus in 2016, as it looks to expand interests in enterprise-wide risk management (EWRM) and Cell Fund insurance products.

Cell Fund

We pride ourselves on our flexibility, efficiency, reliability and uphold strong business ties with all our stakeholders

Lidwala recently launched a new product into the ART solutions market designed to give clients more control over their money and retain the risk themselves. Covering all classes of insurance – including fire, theft, engineering, motor, liability, bonds and marine – the Cell Fund concept can be customised for medium to large organisations, local government authorities and other parastatals who want to reduce the cost of conventional insurance by retaining part of the risk themselves.

“ART solutions are modern and innovative means of transferring risk as opposed to other conventional insurance products. By working closely

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AFRICA RE SA Johannesburg, South Africa T +27 11 484 3764/1970/1606 E africare@africare.co.za Lagos, Nigeria T +234 1 461 6820/28 E info@africa-re.com Nairobi, Kenya T +254 20 2970000 E nairobi@africa-re.com Casablanca, Morocco T +212 2 22 43 77 00 E casablanca@africa-re.com Addis Ababa, Ethiopia T +251 11 416 5803/4 E addisababa@africa-re.com Cairo, Egypt T +20 2 22685668 E cairo@africa-re.com Port Louis, Mauritius T +230 454 7074 E p-louis@africa-re.com Abidjan, Ivory Coast T +225 22 40 44 80/1 E abidjan@africa-re.com

Creating products specific to the local market

with industry experts and insurers who have access to world insurance markets, we can garner a huge amount of feedback on ways to create products that are specific to the local market,” says Madondo.

He continues: “We have always been very reactive to industry trends and introduced new products tailored for the local market as a result. By developing a product that would allow big corporations to reap some financial benefit from the money originally allocated to premiums, the Cell Fund has been steadily attracting the interest of a number of big company names.

“Setting up a Cell Fund with Lidwala would assist clients in managing the self-retained portion of the risk through access to expert advice in structuring the risks that would have been identified for self-retention, access to risk management services, as well as access to the reinsurance market in order to protect underlying Cell Funds.”

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FMRE PROPERTY & CASUALTY BOTSWANA

We have always been very reactive to industry trends and introduced new products tailored for the local market as a result

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MRE Property & Casualty Botswana, is a subsidiary of First Mutual Holdings Limited (Zimbabwe), and is involved in the provision of reinsurance security in all classes of general insurance. The Company also provides a diverse range of technical services to back its core reinsurance services to insurance companies and reinsurance brokers across Africa. FMRE Property & Casualty has offices in Zimbabwe and Botswana.

T +267 393 4293/94 E info@fmre.co.bw

www.fmrepropertyandcasualty.co.zw

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- A proud tradition African Reinsurance Corporation (South Africa) Limited Member of the Africa Re Group

Our Mission

To foster the development of the insurance and reinsurance industry in Africa; to promote growth of the national, regional and sub-regional underwriting and retention capacities and to support African economic development.

• Established and evolving since 1976 • Dedicated to the African continent and selected Asian and Middle Eastern markets • A committed premier reinsurance institution with underwriting and retention capabilities

Products and Services • Fire and Engineering • Accident and Motor • Oil and Energy • Marine and Aviation • Miscellaneous

Rated A- (Strong) with Stable Outlook by Standard & Poor’s

African Reinsurance Corporation (South Africa) Ltd Tel: +27 (0)11 484 3764, +27 (0)11 484 1970, +27 (0)11 484 1606 Fax: +27 (0)11 484 1001 Email: africare@africare.co.za

www.africa-re.com

A LITTLE UNKNOWN FACT History tells us that David Livingstone “discovered” the Victoria Falls. What it doesn’t tell us is that he was led by local people, who already had named the falls “Mosi-oa-Tunya.”

Another little unknown fact is that even insurance companies need solid financial security and THAT insurance is provided by FMRE. FMRE has been in Botswana since 2010 providing tailor made property and casualty reinsurance solutions.

For more information contact us on Tel: 3934293/94, info@fmre.co.bw or visit fmrepropertyandcasualty.co.zw

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EWRM products, and will continue to invest in the dynamic needs of today’s customer to ensure that its products remain relevant and as up-to-date as possible. Further to this, the Company is also beginning to explore ART solutions that provide solvency relief and capital management.

Internal efficiencies

Lidwala can guarantee sustainable and permanent risk solutions that add value for all of its clients and brokers

Having realised there was a gap in the market for an entity that could act as a risk management advisor to local businesses, Lidwala also developed the EWRM service to help companies effectively manage their enterprise risks; thereby reducing and, in some cases, eliminating the premiums payable for insurance cover.

“Essentially, instead of taking conventional insurance, companies can now pay for our value-add risk management advice instead,” Madondo states.

Lidwala has already set the pace in terms of both its Cell Fund and

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We enjoy harmonious relationships with most players in the Swazi financial services sector... fostering healthy working relationships with regional and international business partners where possible

With an aptitude for continuous improvement driven the changing needs of its customers, Lidwala has an equally impressive internal strategy to ensure efficiencies across the board. Since moving into bigger premises to accommodate its rapid growth, the Company has invested in a robust integrated IT system that manages operations, finance, HR and administration; all in a cohesive manner, while also operating inhouse training for optimum local staff retention.

“We hope to take our internal systems’ development to the next stage soon with the introduction of stakeholder portals for our brokers, clients, assessors and so on. We are also pressing hard towards a paperless filing and archiving system,” Madondo highlights. “Our ultimate goal is that eventually our brokers and clients should be able to do business with us through this system, serving to streamline and digitise some of our offerings.”

As a Company that is 100 percent in-tune with the needs of its brokers and clients, these technological improvements showcase Lidwala’s commitment to forging sustainable local business partnerships that will last long into the future.

“We enjoy harmonious relationships with most players in the Swazi financial services sector, including our competitors, in addition to fostering healthy working relationships with regional and international business partners where possible,” he further adds.

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Market share

Commanding an already impressive 25 percent market share, courtesy of its careful investments in the most relevant products, Lidwala hopes that the fruits of its labour will see this figure grow to at least 40 percent in the next three to five years. Madondo confirms: “Despite the short-term insurance market becoming increasingly saturated, we hope to leverage the reputation we already have to gain a substantial market share. Also, I would like Lidwala to become the go-to Company when it comes to the best customer satisfaction and innovation, which are two key elements for sustainability and dominance in any industry.”

He concludes: “By crafting workable alternative risk transfer solutions that address the current Swazi insurance shortcomings, Lidwala can guarantee sustainable and permanent risk solutions that add value for all of our clients and brokers. We ourselves are still in a growth phase, and will continue to develop our book to provide further stakeholder security and foster mutually beneficial relationships with customers.”

MOZRE provides reinsurance capacity in the following classes of insurance business: • Fire • Engineering • Marine Hull / Cargo

• Motor • Miscellaneous Accident • Aviation

DIVERSIFIED & INNOVATIVE SOLUTIONS Av. Kenneth Kaunda, No. 674. P.O. Box 2382, Maputo, Mozambique Tel: +258 21 485 972/977 • mozre@mozre.co.mz • www.mozre.co.mz

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LIDWALA INSURANCE COMPANY Manzini Central Building Nkoseluhlaza Street next to Estel House Building Manzini Swaziland T: +268 250 591 123 | 24 | 25 F: +268 2505 9088 E: info@lidwalainsurance.com

www.lidwalainsurance.com