MTN, Sanlam Insurtech Partnership May Face Stumbling Blocks
By Sibahle Malinga
MTN and Sanlam will have to work extra hard to overcome setbacks, such as financial constraints and the lack of an insurance culture, which contribute to the low insurance penetration level across the African continent.
This was the word from analysts commenting on the newly formed partnership between MTN SA, which has almost 30 million local subscribers, and financial services group Sanlam, the largest insurer on the African continent.
The partnership, launched yesterday, will see Sanlam offer its insurance products on MTN’s mobile app, Web site and USSD platforms. The collaboration hopes to tap into Africa’s millions of uninsured and underinsured, initially starting in SA and at later stage expanding into the rest of Africa.
According to insurance comparison site Hippo.co.za, more than 40% of South Africans do not have a formal life insurance policy. Statistics SA found 82 out of every 100 South Africans do not have any form of medical insurance.
Photo courtesy of John Hogg.