Fidelity targets underserved markets

CLOUDINE MATOLA

Fidelity Life Assurance (FLA) is targeting underserved economic sectors, including the informal economy and the diaspora, as it seeks to unlock new growth opportunities and strengthen its long-term earnings base.

Speaking at the company’s annual general meeting this week, FLA chairman Livingstone Gwata said the insurer’s future growth strategy would be driven by expanding access to insurance products for market segments that have traditionally been excluded from formal financial planning.

“The growth of the business will hinge on deepening its value proposition by offering solutions that address the rising demand for security. Central to this strategy is the opening of new markets, namely underserved and marginalized sections of the economy, for whom security and planning are luxuries,” Gwata said.

He said FLA is developing accessible and tailored insurance solutions designed to meet the unique needs of customers in the informal sector, while simultaneously expanding its footprint in the diaspora market.

“Through customer-centric innovation that speaks directly to emerging risks and evolving expectations, the company will also penetrate the diaspora and existing markets in both its jurisdictions. This strategic direction will allow FLA to transform uncertainty into a catalyst for growth, security and sustained profitability for its policyholders and shareholders alike,” he said.

Managing director Reginald Chihota said the insurer sees significant potential in both the informal economy and the diaspora, citing their strong liquidity and recurring income streams.

“We are continuing to strengthen our presence in our chosen markets — the diaspora and the informal sector. We believe these are sizeable markets with sufficient liquidity and recurring premium flows to warrant our attention,” Chihota said.

He revealed that FLA is also preparing to roll out new insurance products aimed at supporting its expansion strategy.

“We have some exciting new products that we believe will be game-changing in the market. Two of them are currently with the regulator and are at the final stage of the approval process,” he said.