MTN, MMI holdings launch ‘aYo’ micro insurance venture
MTN Group and MMI Holdings has announced the launch of a micro-insurance joint venture branded aYo, a joint venture that will benefit from the scale, combined expertise and market access of both companies, to provide a strong basis to compete in a changing mobile financial services industry.
Insurance penetration is low in many countries across Africa, and utilising the resources and capabilities that each of MMI Holdings and MTN provide, aYo will be able to improve this to offer relevant, accessible and easy to use insurance solutions to consumers.
Commenting on the partnership, Herman Singh, group chief digital officer of MTN said that ‘as MTN, we are excited about this partnership as it gives us an opportunity to further expand our bouquet of mobile financial services offerings across our footprint. Working with MMI, and harnessing the rapid growth of mobile on the continent, we will be able to leverage our core competencies, strong brands and scale to deliver much-needed insurance solutions to our customers.’
Danie Botes, group chief operating officer of MMI Holdings remarked that ‘the partnership with MTN will create new revenue streams for MMI, help achieve significant scale, explore opportunities in new markets and segments, and capitalise on the growth of micro-insurance on the continent. The partnership will also allow us to further extend our client-centric vision of financial wellness across the Africa continent.’
The aYo offering will be rolled out in a number of African countries from the end of 2016.
Imran Mahomed is the CEO of aYo Holdings. He is a fellow of the Actuarial Society of South Africa, holds an Honours degree from the University of the Witwatersrand and completed additional studies, including an AMP at Insead.
Mahomed has set up, overseen and been involved with a number of businesses in South Africa and sub-Saharan Africa – mainly related to financial services. He is excited by new gadgets and technologies, enjoys interacting with diverse people, and is passionate about improving the lives of people across Africa.
Mobile Network Operator Distributed Insurance
Mobile Network Operator (MNOs) products accounted for 13% of total lives covered in Africa in 2014 (The landscape of micro insurance in Africa, 2015)
Automatic or embedded coverage covers over 1 million lives on average, voluntary opt-in programmes cover on average just over 140,000 clients
aYo Recharge with Care provides pre-paid MTN customers with free life (MyLife) or hospital (MyHospital) cover every time they load MTN airtime and the cover is instant; valid for a minimum of 30 days.