Multinational telecommunications company MTN has partnered with Sanlam, Africa’s largest non-banking financial services company to enhance the spread of insurance and investment products across Africa.
This partnership will see Sanlam offer its products on MTN’s website, mobile App, and USSD platforms, which aims to provide greater access to these services for people who have been faced with difficulty in accessing these services via traditional routes in the past.
The Alliance will be implemented through MTN’s Insurtech platform known as aYO holdings, which will see each partner hold 50% of aYO.
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While announcing the partnership in a press release in August, MTN said, “While approximately 46% of Africa’s population has access to and uses cell phone services, insurance penetration remains low at less than 5% in most markets except South Africa.”
Speaking about MTN’s partnership with Sanlam, MTN’s group president and CEO Ralph Mupita said, “The alliance was aligned to the Group’s strategic intent to lead digital solutions for Africa’s progress. We are confident that this alliance will build and leverage the strengths and assets of both companies to establish a digital insurance and investment capability across Africa.”
Also commenting on the partnership deal is Sanlam Group CEO Paul Hanratty, who said “We are delighted to reach such a critical stage in our drive to deepen penetration of insurance and investment products across Africa through strategic partnerships.”
“We are confident that a strong foundation is in place for this alliance. Sanlam believes that this strategic alliance with the MTN Group will make a considerable contribution to financial inclusion in Africa.”
“It gives us great pride to be able to partner with MTN to build the best possible range of solutions in the insurance and investment arena for consumers. We anticipate strong long-term growth in mobile financial services and insurance and investments are no exception to this“.
Through this strategic partnership, MTN hopes to accelerate its insurance technology (insurtech) offering across the African continent, via Sanlam’s geographical licensing reach, and its wide-ranging product offering.
Currently, MTN’s insurtech business has around 6 million active policyholders, but it aims to achieve 30 million policyholders by 2025.
For Sanlam, the strategic collaboration with MTN will create a better opportunity to widen the reach of its products and expand its operations in Africa by offering insurance to MTN’s existing customers.
The insurance company is recognized as the largest in Africa, with Its listings on the Johannesburg Stock Exchange, the Namibian Stock Exchange, and the A2X. Established in 1918 as a life insurance company, Sanlam Group has developed into a diversified financial services business.
Its five business clusters comprise Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Investments, Sanlam Corporate, and Santam. Last month, FBNInsurance completed its rebranding project to be known as Sanlam Life Insurance Ltd following Sanlam’s take-up of 100 percent shareholding in FBNInsurance.