First Mutual to engage informal sector

FIRST Mutual Life Assurance Company (FML) will engage the informal sector to sell its products as the company expands its footprints across the country.
The move comes after realisation that the company won’t be able to have branches in every corner of the country.

VICTORIA MTOMBA
BUSINESS REPORTER

FML managing director Ruth Ncube said the company may provide financial assistance to set up the franchise business while the franchise holder is expected to exclusively sell and distribute FML’s products using its own agency force.

Franchising is the practice of leasing for a prescribed period of time the right to use a firm’s successful business model and brand.

“We have made available a sizeable amount for this channel from internal resources which we cannot disclose now since we have entered a closed period. However, let me mention that this model is far way cheaper yet more effective than trying to establish own offices around the country,” Ncube said.

“Overall, the franchise channel is expected to contribute significantly to the company’s new premium income for individual life business in the medium to long term while at the same time reducing acquisition costs significantly.”

She said the company is targeting the formal and informal sector, but will focus more on small and medium enterprises and the agriculture sector in line with the government’s economic blueprint, the Zimbabwe Agenda for Sustainable Socio Economic Transformation (Zim Asset).

Zim Asset promises to foster strategic linkages and formalisation among SMEs and cooperatives across all sectors of the economy.

Ncube said the products would be accessible through the franchise network and the network would be linked to FML’s computer systems making all transactions made through this channel.

She said the franchise will provide a one-stop shop for customers be it on the medical front, funeral business, pensions and short term insurance.

FML seeks to expand its distribution channel to reach out to all parts of the country at a time when the government is promoting the informal sector.

The franchise initiative would help the informal sector which contributes close to 70% of the business transactions.

5 Responses to First Mutual to engage informal sector

  1. tamie July 11, 2014 at 3:23 pm #

    thts good coz now the country lies in the hands of the informal sector morely than the bigger companies.

    • DanielMClark July 13, 2014 at 2:43 pm #

      ᴜᴘᴛᴏ I ʟᴏᴏᴋᴇᴅ ᴀᴛ ᴛʜᴇ ʙᴀɴᴋ ᴅʀᴀғᴛ
      sᴀʏɪɴɢ $7271 , I ʜᴀᴠᴇ ғᴀɪᴛʜ ᴛʜᴀᴛ ᴍʏ ᴄᴏᴜsɪɴ ʜᴀᴅ ʙᴇᴇɴ
      ʀᴇᴀʟɪᴇ ʀᴇᴄᴇɪᴠɪɴɢ ᴍᴏɴᴇʏ ɪɴ ᴛʜᴇɪʀ sᴘᴀʀᴇ ᴛɪᴍᴇ ᴏɴʟɪɴᴇ. . ᴛʜᴇʀᴇ ᴜɴᴄʟᴇ sᴛᴀʀᴛᴇᴅ ᴅᴏɪɴɢ ᴛʜɪs 4 ʟᴇss ᴛʜᴀɴ sᴇᴠᴇɴᴛᴇᴇɴ ᴍᴏɴᴛʜs ᴀɴᴅ ᴊᴜsᴛ
      ʀᴇᴘᴀʏᴇᴅ ᴛʜᴇ ᴍᴏʀᴛɢᴀɢᴇ ᴏɴ ᴛʜᴇʀᴇ ʜᴏᴍᴇ ᴀɴᴅ ᴘᴜʀᴄʜᴀsᴇᴅ ᴀ ɢʀᴇᴀᴛ Rᴇɴᴀᴜʟᴛ 5 . sᴇᴇ ᴘᴀɢᴇ

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  2. Sororezhou July 11, 2014 at 3:27 pm #

    Vendorisation disguised as a technical coup. Insurances should have known that economic melt downs are temporary in nature and should never have allowed themselves to appear to exploit signed up customers by declaring their contributions zerorised by inflation when they were busy purchasing both movable and immovable assets. Now the people have not forgotten the clandestine escalation clauses and depreciation wars launched on their policies by the same companies and same brokers who had persuaded them to join in. Many saw what went on. The result is that the insurance companies have to dig for customers with their beaks, deep into the soil. They are reaping what they sowed.

  3. Sororezhou July 11, 2014 at 3:33 pm #

    Vendorisation paraded as an advanced sales methodology. They ar now harvesting what they sowed. They brewed mistrust by zerorising clients’ policies in the name of inflation when they were busy buying both movable and immovable properties all over the place. Some people observed and noted what was happening. Now the same companies have to dig for customers with their beaks, deep into the hard dry soil. Payback time is now.

  4. Mandis July 11, 2014 at 11:10 pm #

    сհʀіsᴛօрհᴇʀ.­ і­ ᴊսsᴛ­ аɢʀᴇᴇ…­ сհʀіs`s­ сօᴍᴍᴇոᴛ­ іs­ іᴍрʀᴇssіᴠᴇ…­ ʏᴇsᴛᴇʀᴅаʏ­ і­ ɢօᴛ­ ᴛհᴇᴍsᴇʟᴠᴇs­ а ­ հօոᴅа­ sіոсᴇ­ і­ ʙᴇᴇո­ ᴍаᴋіոɢ­ $8239­ ᴛհіs­ ᴍօոᴛհ­ аոᴅ-аʟsօ,­ 10/ᴋ­ ʟаss-ᴍօոᴛհ.­ ᴡіᴛհ-օսᴛ­ аոʏ­ ǫսᴇsᴛіօո­ іᴛs­ ᴛհᴇ­ ʙᴇsᴛ-ᴊօʙ­ і­ հаᴠᴇ­ ᴇᴠᴇʀ­ հаᴅ.­ і­ sᴛаʀᴛᴇᴅ­ ᴛհіs ­ 9-ᴍօոᴛհs­ аɢօ­ аոᴅ­ ʀіɢհᴛ­ аᴡаʏ­ ᴡаs­ ʙʀіոɢіո ­ іո­ օᴠᴇʀ­ $80­ рᴇʀ­ հօսʀ.­ і­ ғօʟʟօᴡ­ ᴛհᴇ­ іոsᴛʀսсᴛіօոs­ հᴇʀᴇ

    …………. W­W­W.W­ℴ­R­K­F­I­N­D­E­R­2­4­7.ℂℴ­ℳ

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