In with the new
Should Old Mutual really be competing for wealthy section of the market?
No-one knows yet if Old Mutual, a brand associated with highly standardised high-volume products, will be credible in the Wealth space
Old Mutual SA’s main strength over the past 20 years has been its ability to build a dominant business in the mass market. Its Mass and Foundation Cluster (MFC) is in low income — a sector in which, up to 1990, insurers could not find profitable business. MFC reverses the conventional thinking on selling insurance. Instead of agents who rely on upfront commissions there is a 4,000-strong salaried sales team which sells products through workplace marketing. To reduce the risk of policy lapses, MFC focuses primarily on the public sector, which has higher job security. So government employees still account for 60% of sales. The business operates in 45,000 worksites.Few competitors sell savings products into the mass market. Old Mutual has an almost equal split with 1.6m savings products, which includes retirement annuities, tax-free savings accounts and education policies, and 1.7m protection policies: funeral policies are the anchor product but life-cover sales are growing. The MFC cl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.