Old Mutual Under Fire – Apology Issued After Refusing to Pay Mother’s Investment

Old Mutual, a prominent insurer, finds itself in the midst of a public relations crisis as it issues a public apology to its clients.

The company has been under intense scrutiny on social media platforms, particularly X (formerly Twitter), following the airing of grievances by Sebabatso Molefi.

Her accusations include Old Mutual’s alleged refusal to honor her mother’s investment, even in the face of a court order.

Escalation of Negative Publicity

The situation escalated rapidly as thousands of disgruntled Old Mutual customers, including musician Zakes Bantwini, shared their own negative experiences.

The overarching sentiment accuses the insurer of engaging in fraudulent practices, adding fuel to the fire of public discontent.

Management Response and Apology

In response to the mounting public outcry, Old Mutual’s management convened a meeting with Sebabatso Molefi, her mother, and legal representatives on Tuesday to seek a resolution.

Subsequently, the financial institution issued a public apology, acknowledging the mishandling of Molefi’s case and expressing regret for the frustration experienced by the family.

Potential Customer Exodus

The fallout from the negative publicity has seen numerous customers expressing their intention to cancel, withdraw, or transfer their investments and policies to alternative financial service providers (FSPs).

Old Mutual, recognizing the gravity of the situation, is actively working to address customer concerns and improve its service.

Zakes Bantwini’s Personal Experience

Adding to the public relations woes, musician Zakes Bantwini shared his family’s disheartening experience with Old Mutual, revealing they received a mere R380 as a payout following his mother’s demise.

The Grammy award-winning artist’s disclosure further intensified the backlash against the insurer.

Company’s Commitment to Improvement

Old Mutual, in its public statement, expressed deep regret for the dissatisfaction experienced by customers and emphasized an unwavering commitment to enhancing its service delivery.

The company recognizes the need for continuous improvement and pledges to address the concerns raised by its clientele.

Conclusion

As Old Mutual navigates this challenging period of negative publicity, the apology and commitment to improvement signal an acknowledgment of the gravity of the situation.

The impact on the insurer’s reputation and customer trust remains to be seen as the company works towards restoring confidence in its services.

Business News