Sipping cocktails and long lunches lure Zurich towards a new market
South Africa’s tourism industry is one of the most important industries in the country. Information website southafrica.info reports that it translates to 7.9% of the country’s gross domestic product. The website adds that by 2020, the Department of Tourism hopes to increase this to R499 billion.
This means that the industry will play a major role in achieving the targets set out by the National Development Plan, and companies will be eager to break into this industry.
Taking a step into a lucrative market
The increased interest in the tourism sector was the motivation behind Zurich’s recent acquisition of BnB Sure, which focuses on supplying insurance cover to the hospitality industry.
Zurich South Africa’s Head of Hospitality, Lana Mizen, says that this was a natural move for the company. “Zurich would like to build on BnB Sure’s success in the industry. Zurich would also like to continue to play a key role in growing this important economic sector in South Africa by partnering with businesses in the tourism industry, providing them with appropriate cover and protecting them against risk.”
She adds that BnB Sure’s passion for, and in-depth knowledge of the hospitality industry, is evident in its organisational culture and daily business practices. “BnB Sure has a keen understanding of the needs and concerns of business owners in the sector and is committed to seamless customer service at all times,” she says.
BnB Sure was established in 1999 in response to an urgent need within the market where there were no products that provided specialist cover for the bed and breakfast (B&B)/guesthouse industry. BnB Sure consulted with stakeholders in the industry to develop an insurance solution that specifically suited their needs. Since inception, six branches have been set up to meet this demand.
Becoming an industry leader
The purchase of BnB Sure brings exciting prospects to Zurich South Africa. The acquisition aligns with Zurich’s strategy and enables the organisation to bring key entrepreneurial and specialist skills to the market; resulting in the delivery of bespoke propositions to brokers.
“BnB Sure holds a significant share of the market, and has developed key strategic relationships with various stakeholders in the industry. Zurich’s global brand, strong broker network and extensive footprint were some of the deciding factors that motivated us to make the acquisition. This will strengthen BnB Sure’s operations and will provide numerous benefits for its customer base going forward,” says Mizen.
Increasing the importance of brokers
She adds that brokers are a critical part of Zurich’s everyday operations and are at the core of the company’s business model. Ongoing dialogue with brokers is essential to developing and enhancing products – regular broker road shows are an important part of this process.
Capacity is one of the factors that makes companies successful in the current insurance landscape. Adding new brokers into the company’s model not only provides Zurich with an increased distribution model, but it also provides the company with an increased set of skills which builds capacity.
This also allows the company to overcome the challenges which Zurich will face in the industry. “In terms of the claims process, time constraints are a challenge. If an incident occurs it needs to be resolved in a timely manner to avoid business losses and reputational damage. Underwriting in the hospitality industry is specialised and special attention needs to be paid to a customer’s requirements in terms of contents, liability and business interruption, amongst others,” says Mizen.
Mizen adds that while BnB Sure’s main focus will still be the bed & breakfast and guesthouse industry, in the future, the company will consider expanding into other areas in the hospitality sector. “Zurich would also like to continue to play a key role in growing this economic sector in South Africa,” she says.
