NDB launches insurance agency
Government, the shareholders of NDB, through the Minister of Finance and Development Planning, Peggy Serame said NDB Insurance Agency has been established to offer Bancassurance product solutions that will cushion customers against various risks while taking and using the bank’s different credit products.
“BIHL would bring value by working together with National Development Bank Insurance Agency to continuously develop cutting edge, innovative Bancassurance products that will not only benefit NDB customers but the country’s economy at large,” said Serame. She is optimistic that the new product will benefit both small and medium enterprises across various sectors and their employees, as well as the public at large, and in the process promoting financial inclusion. “Financial inclusion is critical to empowering a greater number of people to participate in growth enhancing economic activity and for fostering opportunities, at household level, to increase welfare and living standards,” said Serame. She highlighted that the agency is partly propelled by new information and communications technology, as well as by efforts to widen the scope of insurance for products.
Serame further said the agency is in sync with the mandate of the National Development Bank as a Development Finance Institution ( DFI) focused on promoting the economic development of the country through provision of financial services to new and existing undertakings across various key industry sectors such as agriculture, retail and commerce, tourism, property and manufacturing.
She however, bemoaned that business ventures such as agriculture and start- ups often carry inherent risks.
“In the case of agriculture; droughts, diseases, effects of climate change and negative economic downturns, in many instances, could affect the customers’ ability to service their loan facilities,” said Serame. Commenting on the new subsidiary, BIHL representative, Ronald Samuels said the agency has been established to offer insurance product solutions that will cushion customers against various risks, while diversifying NDB income streams.
“This union, in my view is one designed for powering positive progress and changing the lives of people across Botswana through inclusive and sustainable financial services solutions,” said Samuels.