ILO Logo

Peer Learning 2012: Client Value Assessment of Imbizo model with a focus on BSSP and PWYC products

Type of Event:

  Peer Exchange


  August 1-3, 2012


  East London, South Africa


Hosted by Old Mutual, the main goal of the first peer exchange was to analyze client the value proposition of the Burial Society Support Plan (BSSP) and Pay When You Can (PWYC) products, as well as the overall value of the Imbizo model. The objectives were to identify strengths, weaknesses, and improvements under the dimensions of product, access, cost and experience, by comparing BSSP and PWYC to alternatives.



Both products were compared to a typical communal burial society and a typical burial society run by a funeral parlour. PWYC was also compared to PEP/Hollard and Nedbank funeral products. The assessment was conducted by 28 people including Old Mutual Foundation staff, other Old Mutual staff working with the Foundation division, M&F and Nedbank staff, PLG members from Nigeria, Kenya, Guatemala, Nicaragua, Peru, Haiti, India, Pakistan, and facilitators from the ILO’s Microinsurance Innovation Facility.

At the moment, there is nothing that differentiates BSSP from its informal benchmarks. If the pricing structure is revised to offer better value for money, then a potential value proposition could be “we offer the same access and service and much higher benefits at a lower price than other options in your community.” If it is cheaper to offer appropriate value-added services, Old Mutual could expand member benefits at a competitive cost. BSSP also seems to be a mezo-level funeral insurance that strengthens the risk-management capacities of communal burial societies. Another approach would be to position BSSP as a life insurance product: “we give cash that helps you to…”. Clients could use funeral parlours to provide the service, but they could use the cash pay-out from BSSP as life insurance

At the conceptual level, PWYC is ahead of its time by offering flexible coverage, where-by the consumer has control of their premium and price. However, at the practical level, the PACE analysis revealed that the rural target segment is not yet ready to access banking, savings and insurance solely through mobile phones. It needs further explanation to see the benefit of the flexibility of the product. The mobile option should be kept, but extensive guidance by sales agents should be provided to help them enroll. Some tangibility needs to be created to stay in touch with clients in between top-ups. The good news is that the product offers better value for money and is more affordable than its alternatives. The product should be further simplified to allow it to achieve greater scale.

Applying the PACE methodology, the PLG suggested the following follow-up actions:

  • Fill in the information gaps encountered in this analysis and complete a full analysis
  • Define the client value proposition and reposition the BSSP product accordingly
  • Define the client value proposition and reposition the PWYC product accordingly
  • Implement some client value improvements for both BSSP and PWYC to support the repositioning strategy
  • Further improve the Imbizo client value proposition with M&F and Nedbank
  • Present how the PACE analysis results are incorporated into the product offerings at the next face-to-face meeting of the PLG

To learn more about Old Mutual's BSSP and PWYC products and the Imbizo model, as well as the unlocked potential of peer learning, read  Coming together on Client Value.


Download Summary Report: