Insurtech firm Simply Financial Services has secured a significant multi-year funding commitment from Yellowwoods, a private investment group with interests in insurance ventures around the world, including Hollard and Clientele in South Africa.
The deal will assist the
The deal marks a first by the investor in a principally digitally focused life insurance player.
“We’re seeing a shift in the way customers interact with and purchase financial services products. Our intention is to be ahead of the curve as a result of our investments in disruptive businesses such as Simply,” said Scott Gilmour, Director of Yellowwoods.
Simply provides simple, value for money life insurance products including life, disability and funeral cover. The products are largely sold online, no medical tests are required and cover can be secured within a matter of minutes.
Simply aims at market niches currently underserviced by more established life insurance players. Currently, these are to individuals underserviced by traditional insurers, domestic workers and employees within SMME’s.
Yellowwoods has estimated the South African individual life insurance market to be around R110-billion in annual premium, with the online and digital portion of the market expected to grow to more than 15% of the total market over the medium term.
“Customers are increasingly seeking simple products, engagement with insurers, convenient access and products and services that are transparent,” said Simply CEO Anthony Miller.
“These requirements are not met by most current insurers, and Simply aims to be the leader in delivering on these customer requirements,” he added.