Charting a vision: New MD's focus on businesses and policyholders

Unpredictable and extreme weather patterns, volatile economic conditions and new risks such as cyber attacks pose a threat many business.

Old Mutual Short-Term Insurance in Botswana is helping clients navigate these headwinds and gain an edge in the market. As the newly appointed MD, Mosimanegape Molefi brings a wealth of experience to take this business to the next level, ensuring policyholders are a step ahead and in trusted hands.

With a career spanning various facets of the actuarial world, Molefi has proven his versatility. From pensions and medical aids to life insurance, short-term insurance, social security and unconventional domains such as mining and telecommunications, he has consistently demonstrated his prowess as a seasoned actuarial professional.

He has held significant roles at Ernst & Young LLP in London, Deloitte Johannesburg and Debswana.

Since December 2019, Molefi has served as the chair of the Botswana Actuarial Society and has been a member of the Institute and Faculty of Actuaries UK’s African Actuarial Standards Committee since April 2019.

With mining being the cornerstone of the Botswana economy, Molefi says the needs of clients must be well understood so that tailored solutions are implemented ahead of unexpected events.

“For instance, a lot of miners are being kept awake at night over foreclosure liabilities — this happens after the mine is closed and the land is due for rehabilitation,” he says.

“We are stepping into this space to provide closure liability guarantees that ensure a payout to alleviate the pain and help protect the environment.”

And it's not just mining where growth lies for Botswana — sectors such as tourism, construction and service are on the rise too.

This economic diversification is leading to more businesses looking to expand and taking on bigger projects. This raises the need for more sophisticated policies to aid growth and limit risk.

For instance, “parametric insurance” is a viable option for many businesses faced with climate-related risks. These policies pay out based on thresholds, so it is automatically triggered when that level is reached.

This provides protection and safety, and instils confidence in these businesses to reach their goals as they know they are covered.

Molefi says the digitalisation of the economy has increased the risks of cyber attacks, so this must now be covered more prominently than before.  As the economy grows, businesses must assess the adequacy of their insurance cover.

“A ‘black swan’ event can swoop in at any point, so it’s important those undertaking new projects, seeking growth and wanting to protect their business have enough insurance coverage to ensure their good work is not undone,” says Molefi.

“Unfortunately, insurance coverage is not adequate in Botswana, and these gaps must be filled. People must realise insurance is there to help.”

This article was sponsored by Old Mutual.