FINCORP Converts Finsure To Long-Term Insurance Company

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By Inside Biz

In the year 2022, FINCORP achieved another major milestone by converting its subsidiary, Finsure Insurance Brokers into an insurance company specializing in long-term insurance.  

As of October 1, 2021, Finsure was transformed from a brokerage business to an insurance company offering long-term insurance products. The new company, Finsure Assurance Limited has been duly licensed by the Financial Services Regulatory Authority (FSRA). 

Just recently, FINCORP appointed Mrs. Nozipho Dlamini, for the Chief Insurance Officer (CIO) position in its insurance subsidiary company, Finsure Assurance Limited. She assumed the position with effect from February 1, 2023.

Dlamini brings to the company over 10 years of experience in the field of long-term insurance. She is expected to use her extensive industry experience to spearhead the operations of FINSURE to new heights starting with taking lead in the formulation of a new five-year strategic plan for the company.

In the company’s 2022 annual report, Minister of Finance Neal Rijkenberg commended FINCORP for the conversion of the brokerage business.

“This has helped in diversifying its service offering which will expand the role of the organization in deepening the national financial inclusion efforts,” he said.

Meanwhile, former FINCORP Board Chairman Zonke Magagula, reported that the new company’s balance sheet grew by 400 percent whilst the claims ratio largely remained within acceptable limits within the first six months of operations.

He said the conversion of Finsure will also go a long way in improving the liquidity levels within the Group.

“Whilst the company currently operates under a captive insurance model, the ultimate desire is to later graduate into a fully-fledged insurance company offering a diverse range of products to the local market,” said Magagula who is the former chairman.

Finsure Assurance at the end of the financial year 2022 recorded an impressive balance sheet growth from E4.2 million to E28.3 million asset base. So far, its main revenue is underpinned by the credit life business.  

Finsure Assurance had a total of 5, 802 insured loans from both FINCORP and First Finance worth over E500 million, and total claims over the period review stood at 11 percent which was just over E82 000 way lower than the forecasted 20 percent claims ratio.  

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