MTN to sell Sanlam insurance on its digital platforms
The company is eyeing revenue of about R270 billion in the next three years.
MTN’s SA business, which has a micro-insurance partnership with financial services group MMI, has also partnered with Sanlam to provide a range of financial services via MTN’s digital platforms.
The partnership, announced on Tuesday, will see Sanlam, which is the largest insurer on the African continent, offer its insurance products on MTN’s mobile app, Web site and USSD platforms.
According to Business Day, MTN had identified an opportunity for R90 billion in revenue each year for the next three years across their markets. In other words, MTN is eyeing revenue of about R270 billion in the next three years.
Through the collaboration, MTN will provide the platforms, payment solution and clientele distribution, while Sanlam will provide the insurance products, regulatory compliance and capital.
With data and voice services becoming increasingly commoditised, mobile operators are looking to bolster their digital and financial services offerings.
MTN said on Tuesday that the partnership with Sanlam would initially allow its customers to access the insurer’s funeral cover and various life products, “with unique extra benefits”.
Customers will be able to sign up for Sanlam’s products via devices linked to MTN’s network.
“For Sanlam, this collaboration represents a meaningful step in introducing new technologies to create game-changing value for the increasing number of digitally astute consumers,” said Jan Steenkamp, CEO of strategic business development at Sanlam Personal Finance.
According to Business Day, MTN CEO Rob Shuter said in late 2018 that the telecoms company planned to launch mobile money services in its two biggest markets, SA and Nigeria, in the first half of 2019 as it seeks to be “the biggest provider of mobile financial services in Africa”.
Shuter said in late 2018 that MTN’s micro-insurance partnership with MMI was gaining traction, which about 2-million policies having been issued by that time.