By Cynthia Ezekwe
Sanlam, a pan-African insurance company has partnered with aYo Holdings, a micro-insurance fintech company, to revolutionise insurance in Nigeria in support of Sanlam’s drive to offer local consumers affordable life and hospitalisation cover.
A statement from the company disclosed that aYo will act as a technology service provider to Sanlam in Nigeria, coordinate technical integration for the underwriter of microinsurance products and provide platform services to enable mobile money and third-party payment offerings. This will enable Sanlam to offer easy-to-understand, convenient and affordable products that challenge traditional insurance offerings in the market.
Kayode Odetola, chief executive officer of aYo Nigeria, noted that the low insurance penetration rate in Nigeria, which is less than 1 per cent of the country’s Gross Domestic Product (GDP), is one of the lowest in Africa.
“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,” he said.
Odetola added that from the seamless onboarding process to the ability to track cover in real-time, aYo aims to change the perception of insurance by dealing with one of the most important challenges, which is trust.
At launch, the Sanlam Recharge with Care product will offer up to N300,000 in life cover and up to N6,500 per day in hospitalisation cover that can be purchased using mobile money wallets and other payment options.
The CEO of aYo Holdings company noted that the telco-driven financial services products were well suited for Nigeria’s vast underserved population, which is expected to benefit significantly from Sanlam’s affordable life and hospitalisation covers.
Also, Tunde Mimiko, chief executive of Sanlam Life Insurance Nigeria Limited, 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 added.
