MTN JOINS FORCES WITH HOLLARD TO INNOVATE IN INSURANCE
Hollard Life Zambia has partnered with MTN Zambia to bring an innovative new insurance product to the Zambian market, building on both groups’ reputations for customer-focused innovation. The product was launched at a media breakfast in Lusaka this morning.
Hollard Life Zambia CEO, Mr. Ian Malilwe, says the partnership with MTN Zambia is exciting, given the telecomm giant’s brand strength and increasing traction in Zambia.
“We are thrilled to be able to partner with a company of the stature of MTN to bring this new product to the market”. He says that the product, called MTN EduSure, brings affordable insurance within reach of everyone.
“Our partnership with MTN Zambia enabled us to bring to market a product that offers important cover for children’s education, at a completely reasonable premium”.
MTN provides the transactional platform and the distribution capability.
And MTN Zambia Chief Marketing Officer Clement Asante says: “We are very excited by the potential of the product to address a real need in the community. MTN Zambia is constantly looking for ways to add value to our customers and EduSure expands our offering in a very positive direction.”
The partnership between Hollard Life and MTN Zambia has delivered an offering that stands in sharp contrast to more traditional insurance distribution channels, and is likely to boost the access Zambians have to affordable financial and insurance products. Many Zambians currently have difficulties in accessing similar products or no access at all.
“We see a multi-channel distribution model as a way of ensuring that products are brought to the public in the way that makes the most sense from a consumer’s perspective”, says Mr. Malilwe. “Brokers will continue to represent an important channel for us, but some offerings make more sense in a direct environment.”
The partnership is optimistic about the offerings and expects to generate a significant number of sales. Hollard acts as the underwriter for the insurance product, provides policy administration support and handles the claims administration while MTN’s extensive branch and digital network will serve as the distribution channel through which customers purchase the insurance.
Hollard Life Zambia’s technology partner, The Blue Group, assisted in enabling the product from a technical point of view. MD Daniel Schutte says “We are proud to be the technical partner for this venture. These kind of technology-based solutions are key to providing products for the currently financially under serviced.”
In the medium-term, the roll-out of additional products, including other life insurance, is expected.
MTN Zambia is part of the MTN Group, a multi-national telecommunications company with a footprint in 22 countries in Africa and the Middle East. The company is a leading communications solutions provider covering all the 10 provinces of Zambia and providing 4G, 3G, Edge and 2G networks.
While Hollard Life Zambia was only officially launched in 2012, it is looking to make an impact on the Zambian market by not only delivering innovative product but also, says CEO Mr. Malilwe, “We are committed to making a positive difference through the business we conduct in Zambia and the MTN EduSure policy dovetails with that ideal”.
In his official speech at the Hollard Life Zambia celebration in 2012 our group CEO Mr. Nic Kohler said and I quote,
“Our very significant successes and learnings in the international arena over the past decade have positioned us well as investors to be able to introduce innovative solutions and services, and to contribute to the development of local insurance market.”
Indeed, we believe that the launch of Edusure marks the beginning of that introduction of innovative solutions and services for us as Hollard Life Zambia ,that our Hollard group CEO spoke about in 2012.
Mr. Malilwe further says that for Hollard Life Zambia, innovation will remain the key to penetrating the market. This partnership with MTN ticks that box in a big way.
MTN Zambia CEO Abdul Ismail also says “We have noted that insurance has not been made available or targeted at the low-income market until now. As a leading communications solutions provider in Zambia, it is our duty to provide affordable services that have a positive impact on the lives of all our customers. EduSure is one such service that allows us to take insurance to our low income customers.
The common practice is to design insurance linked to bank accounts. Sadly, only 38% of the Zambian population is banked, leaving a huge gap in the addressable market,” says Mr. Ismail.
The MTN EduSure Policy requires no medical examination and is purchased using a cellphone. Premiums are deducted from an MTN Mobile Money account. The policy pays out an amount on the death of a main insured person or that person’s spouse. That amount may then be used for the current or future educational costs of the insured person’s children.
Five policy types maximise clients’ options, starting with the K500 EduSure plan at only K1.50 per month and escalating to the K10,000 EduSure plan for K22.50. MTN customers who sign up for EduSure will have to dial *121# and submit their personal details.
The main insured must be aged between 18-65 years on sign up and is covered for life as long as the premiums are paid – the spouse of that person is also covered. Each sale has an automatic 30-day cooling off period and there is no waiting period for accidental deaths. However, natural deaths will only be covered after a six-month waiting period.
Everyone covered by the policy has to either be a citizen of Zambia or a permanent resident living within the country.
Hollard Life Zambia