Business

Alpha Direct sets eyes on South African expansion

Kabelo Boranabi | Tuesday June 18, 2024 11:34

Alpha Direct Insurance says it plans to expand operations into the South African market in a strategic move that marks a significant milestone in the company's growth trajectory as it seeks to establish a robust presence in Africa’s second largest economy. PIC AMOGELANG BATOLOKI
 
Alpha Direct Insurance says it plans to expand operations into the South African market in a strategic move that marks a significant milestone in the company's growth trajectory as it seeks to establish a robust presence in Africa’s second largest economy. PIC AMOGELANG BATOLOKI

Directors revealed the company has already made significant strides by launching their operations in that country earlier this year. 'We are busy working on expanding into South Africa,' Alpha Direct CEO and co-founder, Arun Iyer said. He added: “We did our South African launch this month and that means we will have three-country operation, which is part of our vision five years ago.'

Apart from Botswana and South Africa, Alpha Direct has successfully opened an office in Lusaka, which is a key component of the company's regional strategy, which allows it to better serve its customers and partners in Zambia. In Botswana, the company employs 220 people. Iyer pointed out that Alpha Direct prides itself as the go-to insurance company for low risk customers. He said the company is the first insurance company to develop its own rating algorithm where they individually price list. 'That is going to be applicable to about the 15% of the population where are going to be far cheaper than the competition.

“For another 30% of the population somewhat cheaper but for the high-risk customers we are not going to be cheaper unfortunately and we are going to be more expensive than our competitors,' he said. Iyer added the company in their decade long existence has been successful in servicing over a 100, 000 consumers and aims for further growth after reaching the P350 million mark in paid claims. 'Insurance is a business of trust and it takes time to earn trust. The first three to four years it was very hard and we had to convince people that we are worthy to be trusted,' Iyer said. “I think the real turning point came for us by just servicing claims. I remember when we crossed over a P100 million in claims and that was a big milestone for us. We have now serviced over P350 million in claims,' he said.