Browsing through Econet’s Financial Results for the past year makes for an interesting read. You come across interesting developments that are not necessarily publicised and it may be very easy to overlook these developments.
One such example of an interesting development is gathered from the statement below:
During the next 12 months, we will be launching auto-insurance and education insurance, both of which are expected to trigger high take-up from our customers as they will provide valuable new services into market. This is a further validation of our business models that are highly customer focused.
The above statement was included in their statement and it is a clear sign that Econet’s empire will continue growing for the foreseeable future. Their insurtech (Insurance Technology) division is going to be in the news for quite some time over the next few months as they expand into car and education insurance.
Econet’s Insurtech business has been dependant on Ecosure thus far and judging from what Econet says about that product, there is a lot of potential for their other projects:
Through our EcoSure brand, we have increased accessibility to funeral services to the previously excluded. “Insure-tech” is our fastest growing segment with over 2.0 million beneficiaries. Its rapid adoption is testimony to the pioneering spirit of the Company in addressing the needs of our society.
Can insurance companies compete?
I think insurance companies should be worried because this is not their average competitor. Econet is different from other insurance companies in that it has a bank, a mobile money platform and a network(literally). This triple-threat has ensured that their EcoSure product races to 2 million beneficiaries in such a short amount of time.
When EcoCash was launched, the fact that steward bank was behind them also made their road to the summit of digital payments easier and best believe whatever insurance services they unveil will tie in Steward and EcoCash in some way. They have already incentivised EcoCash by offering $500 worth of life cover to people who receive their salaries using EcoCash Payroll.
History always repeats itself and they will probably offer sweeteners for you to insure your car and your child’s education with them. Remember the sweetener might not be a promotion but just being part of an end-to-end system is so seamless you’ll probably sign up.
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5 comments
Well auto insurance is very different from funeral assurance. There’s a lot of paperwork involved, with things you cannot do on a phone. These things have to be done in person. I think their product will be very problematic from a legal and functional stand-point. Remember, you still need to stick your insurance disc to your windscreen, you cannot receive it via SMS 😉 .
On another note: I’m always amazed at how you guys can read a tiny paragragh on a notice/statement, then write a full article hinged on that and speculation alone. Do more research…
That’s what bankers were thinking until they found themselves running for their money. It would be naiive of Econet to announce their initiative without thorough research.
Remember Econet has more branches and staff than the entire insurance industry combined.There is a huge untapped microinsurance market which form Zimre Holdings CEO attempted to harvest through the formation of SIF (Sadc Insurance Forum).
Econet’s products hinge on their subscriber base, not their staff complement. It’s not naive to think that they have not researched. Just take a look at the history of their products, including EcoSure and Dial-a-Doctor.
I have lost trust with econet on all their services and am angry at how they dupe unsuspecting public. Recently econet changed their policy on ecosure from that which my family subscribed under. I asked my lawyer to look into my case which i believe will be heard successfully and help all ecosure customers. I am angry with Econet and would not want to hear about any of their products. Econet has taken the Zimbabwean market for a ride for too long to prop up projects in other countries at the illegal expense of zimbabweans. None of their services are customer centered and their Corporate social responsibility lives a lot to be desired of a company that is raking in milions daily part of it is earned dishonestly.
Did you ever read through the terms and conditions on these policies. If you read carefully you will find that companies reserve the right to change the products or policies at their will and then inform you later.