MTN Group and MMI Holdings said they have entered into a micro insurance joint venture called ‘aYo’. According MTN, the joint venture 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.
MTN has not disclosed how the partnership will affect its partnership with other local partners such as its partnership with Jumia. Jumia is already in an insurance partnership with AXA Mansard.
MMI Holdings Limited (MMI) is a South African based financial services group listed on the South African stock exchange, the JSE. The group operates in the market through multiple client-facing brands including insurance and investment brands Metropolitan and Momentum, South Africa’s number one cell captive insurer Guardrisk and wellness & rewards programme Multiply.
The company operates in 17 countries across the globe: 13 in the African continent, Hong Kong, Singapore, United Kingdom, and India through a direct presence, strategic partnerships and joint ventures.