Sanlam and aYo Holdings have partnered to offer Nigerians affordable life and hospitalisation insurance coverage.
Sanlam is Africa’s biggest insurer while aYo Holdings is the continent’s emerging microinsurance fintech.
While aYo acts as a technology service provider to distribute Sanlam products in Nigeria, it will equally coordinate technical integration for the underwriter of microinsurance products and provide platform services to enable mobile money and third-party payment offerings.
This, it was learnt, would enable Sanlam to offer easy-to-understand, convenient and affordable products that challenge traditional insurance offerings in the market.
Speaking at the launch of the initiative in Victoria Island, Lagos yesterday, the chief executive officer (CEO) of aYo Nigeria, Kayode Odetola, said the company aims to drive greater financial inclusion by using technology to make financial services more readily available across the country.
Odetola, who said, the low insurance penetration rate in Nigeria (less than 1% of GDP) is one of the lowest in Africa, added that, “most people think insurance is a luxury product, but we want to show that people with all levels of income can get peace of mind at an affordable cost, to help take care of their financial health in the face of unexpected events.”
From the seamless onboarding process to the ability to track cover in real-time, Odetola said, the firm aims to change the perception of insurance by dealing with one of the most important challenges, which is trust.
Hence, the Sanlam Recharge with Care product will offer up to N300,000 in life insurance coverage and up to N6,500 per day in hospitalisation cover that can be purchased using mobile money wallets and other payment options while customers can sign up using the progressive web app (PWA) www.sanlam.ayo.com.ng, with a USSD option planned for phase 2.
Telco-driven financial services products, he stressed, were well suited for Nigeria’s vast underserved population, which is expected to benefit significantly from Sanlam’s affordable life and hospitalisation covers.
On his part, the chief executive of Sanlam Life Insurance Nigeria Limited, Tunde Mimiko, said, the aYo partnership reflects Sanlam’s commitment to deepening insurance penetration in Nigeria by providing accessible life insurance products to more people.
“At Sanlam Nigeria, we aim to form partnerships with organisations who understand the local market and share our values and culture. We’re constantly seeking innovative ways of bringing affordable and fit-for-purpose insurance to all Nigerians. With a trusted partner like aYo on board, the possibilities are as endless as they are exciting,” Mimiko pointed out.
aYo launched in January 2017 in Uganda and has since expanded its operations across Ghana, Zambia, Côte d’Ivoire and Cameroon, through its stakeholder partnerships with MTN and Sanlam.
To Mimiko, “insurance, and the peace of mind it provides, has become more important than ever in today’s fast-paced world, where risks are a part of our daily lives. You never know when you will have to pay to get back on your feet after an accident or an illness. Often, the cost is so large that it goes beyond your immediate financial capacity, and that is where insurance will be most helpful.”
