Short-term insurer King Price plans to launch its life insurance business in the next quarter and is expanding its realm in Europe.
King Price CEO Gideon Galloway said Africa remained a key focus for the company, with its Namibian operation currently the fastest growing short-term insurer in that country.
Galloway said he plans to launch King Price Life in the next quarter, with the stated aim of making the life insurance space simpler and more accessible to ordinary South Africans.
“We started 10 years ago and started from scratch. Year-on-year growth was 40% per year. Even during Covid-19 we grew over 20% but when you start from zero you grow much faster.
“We will be close to R4 billion in premium income at the end of our financial year to June, we will have healthy loss ratios and we were one of the first insurers to offer motor-only policies. , for example, while our competitors lumped them all together,” he said.
Galloway said the R4 billion premium income includes R3 billion of premium income from its short-term business in South Africa, with the R4 billion of premium income also including its Namibian business, the Denmark and its life insurance business, which in the current financial year will have generated approximately R400 million in premium income.
Galloway said the company’s expansion in Europe hinges on its acquisition of a strategic 20% stake in Danish insurer NEXT in 2021.
He said King Price also plans to launch in Europe through the easySure brand after acquiring a license to use the “easy” name and brand, which is already established internationally through easyJet and easyHotel.
Galloway said the intention is to expand its footprint across Europe and other continents, and apart from its operations in Denmark, they are “busy aligning three other regions”.
“From day one, we said we wanted to be beyond the borders of South Africa, either exporting our services from here or physically being on another continent.
“We had various opportunities throughout these 10 years. Australia was one of them, then Asia. Eventually, we got the “easy” mark.
“If you have a brand internationally you can start operating because you can imagine that getting King Price across Europe would be impossible with euro advertising and getting your name out there.
“It gives us an advantage and our technology gives us an advantage there and then you find local partners in the countries. It’s more of a franchise model than trying to do something ourselves” , did he declare.
King Price Deputy CEO Rhett Finch said the ambition was always to look at commercial and life insurance at the right time from a technology, gear, resource and opportunity perspective.
Finch said the insurer met with Stangen and a two-year process culminated in King Price acquiring the company.
“Stangen is now part of our King Price realm and life insurance launch pad strategy.
“Stangen has over 70 years of life insurance experience from a systems, management teams, pricing, reinsurance relationships and know-how perspective and it was a brand “, did he declare.
King Price Life already has just under a million lives insured through its acquisition of Stangen and will launch with the Stangen brand and a new brand called King Price livin’.
Finch said the goal was to secure five million lives within five years.
He said that with a population of 60 million in South Africa, King Price is excited about the opportunity in this market after operating “in a highly saturated red ocean of what is called space car insurance”.
He pointed out that it didn’t take Stangen 70 years to reach nearly a million life insurance customers.
“It took a little over two years to go from 250,000 to 1 million. When we acquired the company, it had approximately 250,000 insured lives.
“There has been about four times the growth without us having launched our King Price life brand yet.
“This is the brand that we believe will enable and unlock growth over the next two years, aligned with technology and product etc. We believe the true potential is yet to be unlocked,” he said. declared.
Finch said King Price’s plans for its life insurance business are to provide the market with simple, easy-to-understand comprehensive life insurance.
“It’s a simple statement, but it’s been a journey to get there, but I think we got it right.
“It’s not necessarily about making the benefit different, but more about making the benefit easier to understand in terms of what you’re buying and what you’re getting,” he said.