Insurer King Price has announced an ambitious bid, thought to be up to R2 billion, for Alexander Forbes’ short-term insurance business.
If successful, the bid would double King Price’s existing business, according to chief executive Gideon Galloway. King Price 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.
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.