Drop in average life expectation prompts increase in policy cancellations and surrenders

Insurers are facing competition from mobile phone and electronic goods companies. The huge impact of Aids/HIV in the country is believed to have given rise to an attitude which favours short term consumption over provision for the future.

Botswana has a small population and the economy is largely dependent on diamonds. Despite being economically successful the market for insurance products is not unlimited. The government has for some time been trying with limited success to diversify the economy. To this end legislation was brought into effect establishing an international financial services centre (IFSC) in Botswana. This enables companies, including insurance companies, to register and operate as IFSC companies in Botswana.