MTN and Sanlam launch an innovative digital-based insurance product
Companies / 30 October 2019, 7:30pm / Dhivana Rajgopaul
DURBAN - MTN South Africa and Sanlam Personal Finance announce that Sanlam Indie’s InsurTech offering is now available to MTN’s digitally-savvy customers.
Following the recent announcement of MTN SA and Sanlam’s joint initiative aimed at bringing affordable and convenient InsureTech offerings to a wider range of consumers, the companies have announced the first joint offering that forms as part of this collaboration.
This sees Sanlam Indie, a range of innovative and inclusive financial services, now being made available to MTN’s digitally-savvy customers.
This initiative is one of the first steps being taken to cement MTN’s foothold in fintech in South Africa.
"By harnessing the power of technology, we have made a range of financial services available to our customers anytime and anywhere. This was the obvious next step for MTN SA in line with MTN Group’s strategy of driving financial inclusion across the 21 markets it operates in, including South Africa," said Felix Kamenga, MTN SA Chief Officer of MTN Mobile Financial Services.
"For Sanlam, this initiative represents a meaningful step in introducing smarter ways to create and protect customers’ wealth through new technologies that create game-changing value for the increasing number of digital-savvy customers. They need easy, trusted platforms that enable them to meet their insurance needs," said Jan Steenkamp, Chief Executive of Strategic Business Development at Sanlam Personal Finance (SPF).
Over the last number of years, Sanlam has invested in creating a new ‘digital first’ set of insurance solutions, called Sanlam Indie. Through this partnership, MTN will be making this set of solutions available via its digital platforms. The offering includes funeral cover, which automatically doubles its cover after two years at no extra cost.
The InsurTech also offers various life insurance products such as life cover, income protection, critical illness cover, disability cover and death income protection. MTN customers can get quotes and complete the purchase of all these products through their mobile devices connected to the network.
What sets this apart, however, is that every policy includes a free, built-in investment, called Wealth Bonus, where Sanlam matches up to 100 % of the customer’s monthly premium with an additional 10% Wealth Bonus for MTN customers. This extra 10% contribution has a material impact on the wealth builder value over time due to the compounding effect in the investment.
Optimised for digital platforms, the sign-up process takes just 10 minutes and eliminates the need for paperwork, promoting financial inclusion by turning what is ordinarily an onerous task into one that can be completed by virtually anyone, anywhere with ease.
Premium payments have also been redesigned with modern customers in mind. Every client will enjoy up to five consecutive premium skips every year. Unlike traditional models, clients won’t lose their cover completely when missing a payment. Instead, their cover will be proportionally adjusted until their premium payments are back on track, without any effect on their existing Wealth Bonus.
“By collaborating with MTN, we believe that we will be able to reach more customers via the platforms that they are comfortable with, and can tap into the growing digital generation,” says Steenkamp.
The partnership represents a significant collaboration in that both companies share similar objectives of fostering financial inclusion and making financial services available to all.
"By doing away with paperwork, we are once again demonstrating our commitment to brighten our customer’s lives by offering solutions that are hassle-free and add real value to their lives. We believe that this initiative will redefine how customers access financial services in the future," concluded Kamenga.
MTN and Sanlam first announced their plans for a joint initiative in July 2019. At the announcement the companies said that they will launch a new disruptive insurance product that would see them venturing into funeral cover and other life products through digital platform
When the initial announcement was made it was said that the insurance products are aimed at LSM 6 (Living Standards Measure) and above, as well as youth and young adults.