Traditionally Blue Financial Services has been known as a micro financier, providing loans to low-income individuals, however the group has also been developing an insurance division and this month will the see the launch of a new dedicated insurance arm in Zambia.

“Blue is best known for its term loans on the micro-financing front, but what many people don’t know is that we have ventured into insurance services (both life and short-term),” says Greg Niemand, head of International Insurance at Blue.

Blue has registered brokerages throughout Africa and has already registered a fully licensed life insurance company in Zambia, Blue Assurance Services (Zambia).

The Zambian division has a limited and traditional product range, which will be expanded over time. The strategy is to expand using the current micro-lending infrastructure to get to critical mass quicker.

“We place our insurance sales teams inside existing micro-lending branches where we not only provide advice to walk-in clients, but also send our people out to look for potential insurance clients,” says Greg. Although work has begun, the company will officially be launched in July 2009.

Greg says Blue took over a management team from an existing insurer who was going through difficulties and recruited the whole experienced team. “We’ve now got local experience that knows the local terrain,” says Niemand.

"Our aim is to sell the most simplistic products that communities can afford in all areas of operation in the next two years"

Initially Blue moved into insurance by developing a standalone funeral scheme and, thereafter, other insurance products to mitigate risks for their clients. Greg says Blue acts as a composite broker (life and short-term insurance) in many countries where using local insurance partners.

Greg explains that micro-insurance protection products are designed specifically for the protection of low income earners. “The aim is to assist with the recovery from the financial consequences of common risks, and this protection is in the form of affordable and appropriate insurance products.

Blue is currently in the process of designing micro-insurance and micro-health products suitable for the under-served rural areas.

“The key for us, as we take insurance to rural areas, is to get the lowest cost base in order for the people to afford the premiums,” says Greg. “Products have been selected to fit a generic scoping, however, this scope has been adapted to suit local and cultural differences in each country.

Comprehensive research has been concluded per country to identify trends, competitor analysis, consumer education, market appetite, legislative restrictions and best product-to-market model and approach.”

“At present, funeral and death cover are the primary needs of rural Africa,” says Greg.

“Our aim is to sell the most simplistic products that communities can afford in all areas of operation in the next two years, either as standalone products or those that can be attached to micro-loans,” concludes Greg.

Blue Insurance Services is a division of Blue Financial Services. The division was established in 2007 and has grown from an initial employee complement of one to over 100 employees spread across several African countries.

For more information about Blue Financial Services and its new focus on insurance products, please contact the company directly:
Name: Morné Reinders
Email: morner@blue.co.za
Tel: +27 12 990 8400