MiWay makes maiden half-year profit

Published on: 03 September 2012

Direct insurer MiWay, a wholly-owned subsidiary of market leader Santam, has posted a maiden profit of R17 million for the half-year ending on 30 June 2012 – four years and four months after their 24 February 2008 launch.

CEO Rene Otto paid tribute to his talented team and supportive shareholders for making this milestone possible. “We launched into a highly competitive market at a very difficult time,” recalls Otto. “The world was in recession, which made our first two years very tough. The dramatic slowdown in car sales in 2009, combined with market jitters, forced us to think on our feet and adapt our business model.”

With the backing of shareholders Sanlam and Santam, Otto and his team managed to pull through those dark days and today, he says: “the result is a profitable business with over 140,000 clients, Gross Written Premium of R500 million for the half-year, and a staff complement of over 1,000 people.”

Otto attributes the achievement of this milestone to his team’s single-minded focus on putting the fundamental building blocks of the business in place, sheer determination and ‘vasbyt’, and commitment to transparency and adaptability. “The open dialogue we have with our customers and staff also makes a big difference.”

There is a lot of change still to come in this industry, predicts Otto.
“Consumers are increasingly super-connected and super-informed and spoilt for choice when it comes to direct insurance options. They have high expectations and don’t tolerate being treated like fools. Delivering fantastic customer service in this ever-changing market and the ability to adapt and innovate is going to be crucial in future.”

The MiWay team is continuously looking for innovative ways to maintain its aggressive growth path in a very competitive market. “We are excited about the next couple of years. We have some new ideas, a great team, and robust infrastructure and systems, which positions us well to capitalise on a number of exciting growth opportunities,” concludes Otto.