Sanlam, MTN Insurtech Alliance Kick Off As Transaction Receives Approval
Sanlam and MTN Group have announced a strategic alliance to market and distribute insurance and investment products across Africa, saying the transaction has received necessary approvals from relevant regulatory authorities.
The alliance which has reached a significant milestone with the fulfillment of the regulatory, competition, and other requirements takes effect from 31 October 2022.
According to a statement today by the two firms, the strategic alliance will be implemented through MTN Group’s InsurTech platform aYo Holdings 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,” the statement stated.
MTN Group President and CEO Mr Ralph Mupita, in the statement said the alliance was aligned to the Group’s strategic intent to lead digital solutions for Africa’s progress: “We are confident that this alliance will build and leverage the strengths and assets of both companies to establish a digital insurance and investment capability across Africa.”
The Sanlam Group Chief Executive Officer, Mr Paul Hanratty said “We are delighted to reach such a critical stage in our drive to deepen penetration of insurance and investment products across Africa through strategic partnerships.”
“We are confident that a strong foundation is in place for this alliance. Sanlam believes that this strategic alliance with the MTN Group will make a considerable contribution to financial inclusion in Africa.”
The statement further explained that by leveraging the MTN brand, Sanlam’s licensing, broad product capabilities, financial services expertise and both group’s geographical footprint across the continent, the alliance has the potential to pre-empt and adapt to digital disruption in markets where both companies operate.
