Nimbus Direct Insurance Business Plan › Section 5 › Product Strategy

5.1 Product Architecture & Phasing

Nimbus will sequence its product portfolio in three phases over the
five-year plan period, balancing speed-to-market with regulatory
complexity, capital intensity, and claim-handling capability.

Phase 1 — South Africa Personal Lines (Year 1–2)

• Comprehensive Motor Insurance — the flagship
  Year 1 product. Covers private passenger vehicles for own damage,
  third-party liability, theft and hijack, with optional add-ons
  (windscreen, scratch & dent, tyre & rim, car hire). Pricing
  engine incorporates 40+ rating factors at launch, scaling to 80+ within
  12 months via telematics enrichment.
• Third-Party Only Motor — entry-level cover for
  price-sensitive segments; required to comply with bond and lease
  provisions in some cases.
• Buildings & Contents (Homeowners) Insurance
  — sum-insured-based cover for primary residences, with optional cover
  for outbuildings, swimming pools, walls and fences, and contents under
  specified-items and unspecified-items schedules. All-risks cover for
  portable items available as add-on.
• Personal Liability Cover — bundled with home and
  motor policies; provides cover for third-party legal liability up to
  elected limit.

Phase 2 — Commercial Lines & UBI (Year 2–3)

• SME Combined Cover — packaged commercial product
  for small businesses (revenue up to ZAR 50 million). Covers business
  assets, business interruption, public liability, employer’s liability,
  and money-in-transit, sold through a fully self-service quote-and-bind
  flow with broker option for larger schedules.
• Telematics & Usage-Based Insurance (UBI) —
  Year 2 introduction of a black-box and smartphone-based UBI variant of
  comprehensive motor cover. Provides ongoing premium adjustment based on
  actual driving exposure and behaviour.
• Specialty Lines — limited rollout of all-risks
  fine art, specialised personal accident, and travel insurance.

Phase 3 — Life, Funeral & Microinsurance (Year 3–5)

• Funeral Cover (Individual & Family) — Year 3
  launch under the Nimbus Life licence; covers immediate, extended and
  societal family structures recognised under South African
  custom.
• Life Risk Cover (Term Life) — Year 4
  launch.
• Credit Life Cover — Year 4 launch; offered
  through banking partner channels.
• Microinsurance Products — Year 5 launch in
  Botswana; designed for mass-market accessibility with low-premium,
  simplified-claims products and USSD distribution.

5.2 Product Mix Evolution

Figure 5.1

5.3 The Nimbus Reserve — Customer Reward Mechanism

The Nimbus Reserve is the Company’s flagship retention and
customer-alignment mechanism. It improves upon the established OUTbonus
and Discovery Vitality models in three specific ways:

Mechanics

1. Each policyholder accrues a percentage of their monthly premium
   into an individual Reserve, with the accrual rate stepping up over time:
   4% in Year 1, 6% in Year 2, 8% in Year 3, 10% from Year 4
   onwards.
2. Claim-free maturity unlocks the Reserve every three years;
   partial maturity is available after 24 months at a reduced
   rate.
3. At maturity, the customer elects to (a) receive cash deposit, (b)
   apply the balance as premium credit, or (c) redeem at premium partners
   across the Reserve Ecosystem (fuel, retail, healthcare).
4. A claim within the maturity period resets only the active cycle;
   previously-matured reserves are preserved.

Why It Wins

• Earned reward begins immediately (OUTbonus
  requires a 3-year wait with no partial unlock; Nimbus offers 24-month
  partial maturity).
• Ecosystem redemption — partner network of fuel
  retailers, supermarkets and pharmacy chains makes the Reserve
  immediately usable in daily life.
• Behavioural alignment — accrual escalator
  (4%→10%) rewards long tenure, lifting expected customer
  lifetime.
• Capital efficient — the Reserve is accounted for
  as a contingent policyholder liability with discount factors applied for
  forfeiture experience; net economic cost to Nimbus expected at 3.5–4.5%
  of GWP after experience adjustments.

5.4 Reinsurance Programme

Nimbus will operate a robust reinsurance programme combining
proportional and non-proportional structures, designed to (a) protect
against frequency and severity volatility, (b) reduce regulatory capital
requirements, and (c) provide access to reinsurer technical expertise.
The Year 1 programme has been provisionally structured as follows:

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