Sanlam partners with MTN to develop digital insurance offerings

In a groundbreaking merger that merges the realms of telecoms and insurance, Sanlam has announced a partnership with MTN Group to develop and expand digital insurance and investment offerings across Africa. Heather Van Herder, Executive Strategic Ventures, Retail Credit and Asset Management at Sanlam Pan Africa Life, joined CNBC Africa to provide insights into this strategic alliance. The key theme of this partnership revolves around leveraging MTN's extensive mobile subscriber base and vast reach to bring innovative insurance products to underserved markets. Here are three key points from the interview: 1. Target Markets and Growth Plans: Heather Van Herder highlighted that Nigeria and Sanlam Africa are key target markets where the partnership aims to capitalize on MTN's existing infrastructure and market presence. By prioritizing regions where MTN has strong footholds, the partnership seeks to tap into new customer segments and deliver tailored insurance solutions. While the exact growth projections are still evolving, the focus remains on driving client value and adapting to the dynamic nature of the market. 2. Product Offerings and Market Trends: The initial focus of the partnership lies in micro insurance products targeted at underserved populations with limited access to financial services. These products offer basic coverage at affordable premiums, catering to the unique needs of the informal market. As the collaboration matures, the plan is to expand the product range to include life insurance, retail and asset management, health products, and more complex offerings. By aligning with MTN's commitment to financial inclusion, Sanlam intends to develop customer-centric value propositions that resonate with the diverse customer base. 3. Value Creation and Potential Impact: Both Sanlam and MTN anticipate significant value creation through this partnership, with the potential to transform the insurance landscape in Africa. While the exact valuation is still in flux, the partners are optimistic about the long-term benefits of combining their expertise and resources. The acquisition of a micro insurance platform serves as a foundation for future growth and innovation, paving the way for enhanced customer experiences and market penetration. Heather Van Herder emphasized that the strategic alliance between Sanlam and MTN has the potential to be a game-changer, offering a comprehensive suite of insurance products tailored to the evolving needs of consumers. By integrating seamlessly into MTN's digital ecosystem, Sanlam aims to become a trusted partner in providing financial solutions across the continent.