Resah Zimnat Concept Note

RESAH – ZIMNAT PROPOSAL AND CONCEPT NOTE
Executive Summary
This proposal outlines a potential strategic partnership between Resah and Zimnat Life
Assurance to align mutual business development goals within the context of a distribution model
of Zimnat life assurance products through Resah and its agent network. The project will roll out
as a pilot programme with 10 agents in the Mashonaland East Province being the precursor to
expansion, which will over time include the current complement of 215 village-based agents and
future agent recruits. This partnership will generate income for the agents in the form of
commissions for policies sold while also ensuring the covering of the administration costs.
Introduction
Zimnat Life Assurance Company is a subsidiary of Masawara Holdings and the Sanlam Group,
which is committed to offering high quality and competitive individual or Group Pensions, Life
Assurance Schemes, Funeral Assurance, and other related risk products.
We are driven to make life better for our partners in our value network through providing
products that meet their needs while also ensuring lasting legacies for generations to come.
Because we are living in a dynamic environment, we always strive to ensure that bereavement
is not scarring through always including options for our client’s according to existing and
emerging needs and preferences. We go the extra mile to provide the perfect package for
everybody; one that is unique, simple and that makes life better.
Resah is a subsidiary of Green Foods Agri Holdings and distributes inputs to village units in
urban and peri-urban environments. Resah is currently using a distribution model utilizing the
Village Agent Model through which the developments are towards having an agent in all the
35,000 village units in the country. Currently the agent network is extended to 215 villages
countrywide.
ZLA Products
Under our Life assurance we have a variety of products that help with financial inclusion through
offering relief for the short term and long-term struggles of bereavement.
These products are namely: -

1. Gadziriro Funeral Cash Plan – which pays in cash in the event of a bereavement. It is
available on tiers according to preferences and comes with some optional additives
including hospital cash plan, vigil and tombstone benefits.
2. Sarudzo Funeral Services Plan – this is a package where members can choose between
a cash payment to themselves or a payment to their preferred service provider. This
allows flexibility and convenience as one is not restricted as to the choices.
3. Tsapi -Personal Pension Plan – this is when members contribute towards a retirement
pension. The scheme is tailor made according to preferences but assures that in the
advanced age, one does not worry about being able to provide for themselves.
4. Security and Lifecare Plans – this is a package that provides a lumpsum towards the
estate or members in the event of death and pays according to the choice of cover. The
product covers on a sliding scale from $6,000 up to $350,000.
Business Rationale
Resah is pioneering a Village Based Agency Model wherein lead farmers have been identified in
villages to act as distribution agents for products under the Green Foods Agri Holdings
company. The current network of agents is in 6 Provinces namely, Manicaland (Chimanimani
and Chipinge Rural); Masvingo (Gutu, Bikita, Chiredzi and Mwenezi); Mash West (Ngezi and
Mhondoro); Midlands (Gokwe South); Bulawayo and Mash East (Mudzi, Murehwa, Mutoko and
UMP). The total agent network is 215 with the preferred region being Mash East with 93
Agents.
The pilot programme will be launched with 10 agents to allow for optimization of activities,
training and supervision; also allowing for scaling up of the agent participation and spreading
under organic growth conditions.
Agents have the potential to increase their earnings as they will earn a sales-based commission
on the cases successfully signed up. To increase the performance of the agents, regular training
will be conducted mainly focusing on product knowledge and other soft skills expected of a high
performing agent. In order to ensure mutual benefit, Resah has the opportunity to utilize Zimnat
training staff to cater for other soft skills that may be identified as a gap but not necessarily
directly contributing to Zimnat product sales.
Financial Impact
The model has provisions for Agents to earn in the form of commissions which are shown in the
Projected financial impact for each agent as below. Furthermore, the regional agronomists stand
to earn an over-rider on commissions earned by the agents : -
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Total income Premiums 10,800.00 20,520.00 29,268.00 37,141.20 44,227.08 141,956.28
Agent Commissions 2,160.00 3,132.00 4,006.80 4,794.12 5,502.71 19,595.63

Supervisor/Agronomist
Over-rider Commissions 270.00 513.00 731.70 928.53 1,105.68 3,548.91
Admin fees 270.00 513.00 731.70 928.53 1,105.68 3,548.91

Illustration of financial impact for business generated by a single agent.
Year 1 Year 2 Year 3 Year 4 Year 5 Total
108,000.0 205,200.0 292,680.0 371,412.0 442,270.8 1,419,562.8

Total income Premiums 0 0 0 0 0 0
Agent Commissions 21,600.00 31,320.00 40,068.00 47,941.20 55,027.08 195,956.28

Supervisor/Agronomist
Over-rider 2,700.00 5,130.00 7,317.00 9,285.30 11,056.77 35,489.07
Commissions
Admin fees 2,700.00 5,130.00 7,317.00 9,285.30 11,056.77 35,489.07

Illustration of financial impact using compliment of 10 agents.
Assumptions: -
Given assumption of 60 cases signed per agent over the year
Average policy premium of $180 per year.
Complement of 10 agents as pilot, all operating at same level of productivity.
Conclusion
Zimnat Life assurance invites Resah and the Green Foods Agri Holdings Company to consider
this proposal as a foundation towards a strategic partnership that expands on the concepts and
aligns the goals of each organization, strengthening sustainability, building long term value
through sustainable innovative solutions and purpose driven building of value networks. Zimant
would therefore welcome feedback and the opportunity to discuss the proposal to suit any
preferences.
Contact Information
Samuel Tsikada
Agribusiness Channel Manager (Individual Life)
Zimnat Life assurance
tsikadas@zimnat.co.zw
+263-71 393 4439 +263 77 321 0449

Resah Zimnat Concept Note

Uploaded by

Copyright:

Available Formats

Resah Zimnat Concept Note

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Resah Zimnat Concept Note

Uploaded by

Copyright:

Available Formats

RESAH – ZIMNAT PROPOSAL AND CONCEPT NOTE

These products are namely: -

Year 1 Year 2 Year 3 Year 4 Year 5 Total

Total income Premiums 10,800.00 20,520.00 29,268.00 37,141.20 44,227.08 141,956.28

Agent Commissions 2,160.00 3,132.00 4,006.80 4,794.12 5,502.71 19,595.63

Admin fees 270.00 513.00 731.70 928.53 1,105.68 3,548.91

Year 1 Year 2 Year 3 Year 4 Year 5 Total

108,000.0 205,200.0 292,680.0 371,412.0 442,270.8 1,419,562.8

Agent Commissions 21,600.00 31,320.00 40,068.00 47,941.20 55,027.08 195,956.28

Admin fees 2,700.00 5,130.00 7,317.00 9,285.30 11,056.77 35,489.07

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.