South African telecommunications giant MTN has teamed with financial services business Sanlam to provide insurance products to subscribers of MTN in Africa.
According to Nextv Africa, relatively few subscribers of MTN in Africa currently have insurance cover.
The alliance between compatriots MTN and Sanlam will seek to build a digital insurance investment business, which will be ‘an integral part’ of MTN’s FinTech offering.
MTN is Africa’s largest mobile operator and currently has over 277 million voice subscribers. By leveraging Sanlam’s financial licence, expertise and geographical reach, MTN claims it will aim to expand outside its home market by selling its products to its huge customer base. The two companies will sell insurance, savings offerings and investment.
MTN also remarked that the alliance will allow it to accelerate and scale its InsurTech offering. MTN InsurTech companies currently have an estimated 6 million active policyholders and is aiming to reach 30 million by 2025 with the new alliance.
A joint release by MTN and Sanlam stated, “The Alliance will provide people across the continent with easier access to these services, particularly those sectors of the population that have typically been unable to access traditional distribution channels for such products. Sanlam is the largest non-banking financial services group in Africa, with a presence in 33 countries across the continent.”
The Alliance will also enable MTN to accelerate and scale its InsurTech offering through its brand and reach and by leveraging Sanlam’s licensing and geographical footprint, as well as its broad product capabilities and expertise. MTN InsurTech businesses currently have approximately 6 million active policyholders, with a target of over 30 million policyholders by 2025 with this new Alliance.
Sanlam CEO Paul Hanratty said, “We are excited by MTN’s development of modern mobile financial services for the benefit and empowerment of the African consumer. 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.”
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