Insurer King Price has announced an ambitious bid, thought to be up to R2 billion, for Alexander Forbes’ short term insurance business, saying it believes it would be the ‘best fit’ for the business in the local market.
If successful, the bid would double King Price’s existing business, said chief executive Gideon Galloway. King Price, which was founded seven years ago, currently sells around 12,000 policies a month and, as at the end of its 2019 financial year in June, will see annual premium of R1.8 billion.
Galloway said the fact that King Price plays only in the short term insurance market makes it ‘the perfect fit’ for the Alexander Forbes short term assets, as the insurer would not compete with Alexander Forbes in any other market segment.
“The Alexander Forbes short term business has great people, a highly-desirable client set, and a solid branch infrastructure. We’ve got industry-leading technology and an award-winning company culture and customer experience approach that will unlock significant value for all stakeholders,” said Galloway.
King Price entered the highly-competitive SA insurance market in June 2012 with a world-first customer-centric insurance model that automatically decreases comprehensive car premiums monthly in line with the cars’ depreciating values. Since then, King Price has expanded its personal lines products to include cover for everything consumers need covered, launched a successful business insurance division, and built a thriving business in Namibia.
Galloway says one of the company’s key differentiators since its launch has been its use of advanced data analytics and technology to streamline its processes and deliver better service and prices to its customers. This technology would ‘transform’ the Alexander Forbes short term book and open significant growth opportunities, he said.
King Price’s approach of customer-centricity as a business philosophy is also gaining traction in the local market. Last week, the insurer was named the brand that delivers the best customer experience in South Africa at Corinium’s inaugural Customer 360 Africa 2019 Awards, walking away with the Best Customer Experience Award by an Organisation or Team in recognition of its ongoing innovations around its customer experience. In the same week, International Business Magazine named King Price Best Place to Work For SA 2019, Most Innovative Insurance Company SA 2019, and Fastest Growing Insurance Company SA 2019.
“Since our launch, we’ve expanded our product range and now cover so much more than just cars. Our unique business model has saved our clients R140 million in decreasing premiums, thereby placing them first, but the value we bring to the South African short term insurance market, and potentially the Alexander Forbes short term business, is about much more than giving premiums back. It’s also about creating a culture in which we deliver royal service through highly engaged staff, supported by industry-leading technology, data models and analytics,” said Galloway.