Sanlam, a global insurer, has partnered with a microinsurance fintech, aYo Holdings, to revolutionise insurance in Nigeria, and offer local consumers affordable life and hospitalisation cover.
It said aYo would 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.
At an event on the partnership in Lagos, the duo said this would enable Sanlam to offer easy-to-understand, convenient and affordable products that challenge traditional insurance offerings in the market.
The Chief Executive Officer of aYo Nigeria, Kayode Odetola, said the company aimed to drive greater financial inclusion by using technology to make financial services more readily available across the country.
Odetola said the low insurance penetration rate in Nigeria at less than one per cent of the Gross Domestic Product, was is one of the lowest in Africa. He said, “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, we aim 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.”
Odetola said telco-driven financial services products were well suited for Nigeria’s vast underserved population, which was expected to benefit significantly from Sanlam’s affordable life and hospitalisation covers.
The Chief Executive of Sanlam Life Insurance Nigeria Limited, Tunde Mimiko, said the aYo partnership reflected Sanlam’s commitment to deepening insurance penetration in Nigeria by providing accessible life insurance products to more people.
