Home » Industry » FML Launches New Franchise Business

First Mutual Life’s new franchise business is expected to contribute about 13 percent of budgeted new business to the company’s premium income across all lines, an official has said.

Launching the inaugural First Mutual Life Franchise Business, the company’s managing director Ms Ruth Ncube said the franchisee known as Dunamis Pvt Ltd, owned by former First Mutual employee Mr Madzishe Chipunza, will add value to individual life, corporate or employee benefits business, health insurance business and short term insurance.

“While this is our first franchise, the company is looking at establishing and empowering additional entrepreneurs and introducing a similar model across the country,” said Ms Ncube.

FML is optimistic of delivering a positive performance in the outlook period despite signs of distress that are now manifesting through negative economic indicators.

“We see good prospects to grow the businesses through the use of strategic partnerships, robust client relationship management for organic growth and the use of technology to streamline product distribution and premium collection costs,” said Ms Ncube.

Insurance franchising business particularly in South Africa where companies such as Liberty and Discovery have statistics showing an ipard appreciation on premium income of around 15 percent year on year whole reducing acquisition costs by 20 percent per franchise.

“For First Mutual Life this model allows the business to manage capital effectively through selected shares costs with the franchisee.

“First Mutual together with its actuaries will continue to monitor and give aice to the franchisee from time to time,” said Ms Ncube.

First Mutual Life provides financial assistance to set up this particular franchise.

The model will further enable the franchise holder to operate with lower running costs and penetrate areas where FML cannot do so in an economic manner.

“Further, to ensure efficient service delivery, this franchise is supported with a real time administration system which is linked to the main frame of the business’s operating system.

“This allows the new business to be administered on time and in line with the ISO certification standards accorded to FML,” said Ms Ncube.

Taking aantage of the rapid growth in technology, FML last year launched the mobile insurance funeral cover, e-FML, which is a mobile and automated funeral policy.

Registration and premiums are paid using the mobile phone and provide a funeral payout starting from $500 for as little as $0,80 per premium contribution per month.

“We have further strengthened our distribution channels through a solid bancassurance arrangement backed by a g support from out call centre,” she said.

Guest of honour Youth Development, Indigenisation and Empowerment Minister Francis Nhema said franchise insurance business will grow in Zimbabwe, considering its success on South Africa, the country’s largest trading partner in the region.

“I have no doubt, ladies and gentlemen, that the boldness shown by FML as a pioneer in Zimbabwe to franchise insurance business will bear fruits.

“Just by looking at our neighbour, South Africa, this distribution model has been mainly used for life products and South African companies obtain between 10-15 percent of their premiums from franchises while agents bring in just above 20 percent,” said Minister Nhema.

Source : The Herald