Pipo Insuretech

MTN, Sanlam set to disrupt Africa insurance ahead of Safaricom

Steve Mbogo



Sanlam and MTN Group have today signed a deal to start selling digital insurance and investment products across Africa a move set to narrow the wide gap of uninsured population and assets.

The deal was confirmed by the heads of the two pan-African companies in a statement issued in Johannesburg South Africa on Tuesday.

“This alliance will establish a digital insurance and investment capability across Africa,” said MTN Group President and CEO Ralph Mupita.

Sanlam has a direct and footprint presence in 32 African markets. MTN is Africa's largest mobile network operator with 272m customers.

The two companies are seeking to leverage their customers numbers, geographical reach and partnerships to benefit from the huge untapped African insurance market.

“Our strategic alliance to market and distribute insurance and investment products across Africa has reached a significant milestone with the fulfillment of the regulatory, competition and other requirements. The effective date of the transaction is 31 October 2022,” the two South Africa-headquartered companies said.

The strategic alliance will be implemented through MTN Group’s InsurTech platform aYo Holdings (aYo) and each partner will hold 50% of aYo.

Through aYo, the alliance will continue to build and develop digital insurance and investment offerings that provide people across Africa with easier access to Sanlam’s products, particularly those people who have typically been unable to access traditional distribution channels.

Insurance in Africa has been termed a ‘sleeping giant’ because of the huge potential to scale.

According to the Africa Reinsurance Corporation , the continent's insurance pe*******on averages 2.8%, considerably below the world's average of 6.3%, highlighting Africa's potential.

It is expected that whichever company gets it right with insuretech in Africa on the numbers of the massive uninsured population will win fintech market in the continent.

Paul Hanratty, the Sanlam Group CEO termed the deal as “a critical stage in our drive to deepen pe*******on of insurance and investment products across Africa through strategic partnerships.”

In March this year, reported that MTN Group’s mobile money product, MoMo had overtaken Kenya’s ’s equivalent Mpesa in capitalization to become the biggest in Africa.

Now, this new strategic alliance amy further deepen MTN’s fintech market share in Africa as it comes ahead of the planned launch of and Mali - digitally enabled insuretech and investment products respectively.

Ends

Without cover, are you really a farmer?

Steve Mbogo

In 2014, a teacher in area of decided to create a new income stream by investing in to sell at a profit. The venture was successful until months before the planned sale for December festive holidays, when all the nine bulls suddenly died.


The cause? The farm worker unknowingly fed the bulls a poisonous w**d. The teacher had invested Ksh150,000 in the construction of the cattle shed and Ksh180,000 to buy nine bull calves. Other unspecified money went into buying feed and labour costs.


She expected to sell each fattened bull for at least Ksh90,000 to make a gross income of Ksh810,000 after two years. But disaster struck. She was staring at zero income and a negative spend of over Ksh450,000. But it was not to be thanks to .


🧵What distinguished the two losses is that the teacher had insured her bulls against accidental death but the Facebook member of the group had not insured her cow.

So the teacher was compensated for the loss of the bulls and the lost income to the tune of Ksh900,000 which she used to reinvest in new bull calves. For the Facebook member, the only option left is to find new money to replace the dead cow.

Why the value of is immeasurable

Livestock insurance matters because according to the Kenya Dairy Board, increased from 591.4 million litres in 2017 to 801.9 million litres in 2021.

This shows that many Kenyans are increasingly taking as a business. There is demonstrated evidence that dairy farming has become a major contributor to household income hence the need to secure it against unexpected risks.

There are tens of insurance companies that offer livestock insurance in Kenya. All the farmer needs to do is to call an insurance company of choice or visit one that is nearest you, or a preferred agent for that matter.

Overall, key features of livestock insurance include the following;
Covers dairy and beef cattle of 2 months to 10 years. Sheep, goats and pigs of 2 months to 7 years among others. Please check with your preferred insurance company or agent.

The minimum cover for livestock insurance is usually Ksh2,000 per animal per year. However, the more animals one insures the lower the cost. Again, your insurance company or agent are best placed to advise you because these prices are negotiated and are unique depending on the risk profile of your livestock.

Some of the risks covered include; death resulting from lightning, internal and external injuries, windstorms, snake bites, electrocution or flooding and various diseases.

Covers also include emergency slaughter based on the advice of a qualified veterinary officer, theft, loss of income benefit, and drought among others.

As noted, please speak to your chosen insurance company or preferred agent to provide you will specifics of based on the risk profile of your livestock assets. 🐄

Planning ahead for your family is the greatest show of LOVE.
Insurance lets you express it. Buy your , and any other that will help them cope with tomorrow's .

How fits into your plan



When you have saved some money, nothing compares to peace of mind knowing that you have a back-up in case of an emergency.

Not only is saved money likely to be readily available, it is free such that you do not have to pay an interest on it.

Tapping your means you avoid the embarrassment of borrowing from family and friends and certainly the risk exposure of getting it from a .

There are many ways to save money and one of them is by buying a policy.

Life is defined as a between you and an company where you commit to paying a certain amount of premium and the company commits to pay a lump sum after a set period or in case of death, illness or accident.

Most products are long-term. This means premiums paid over the years will mature with interest and to add into your savings kitty. A policy is a good strategy for long term savings.

Fidelity Shield Kenya Prudential CIC Group PLC Madison Group Liberty Mutual Insurance