MTN Group is flirting with 20 million InsurTech registered aYo policies for the six months ended-June 2022.
The company informed investors today that its InsurTech platform reached 17.9 million registered aYo policies, up by 31.9% year-on-year.
MTN said active policies reduced by 26.9% year-on-year due to a shift in the strategy to focus on a higher average revenue per policy and new revenue streams, particularly in Uganda.
This resulted in termination of free policies in the portfolio.
“Active policy growth was also impacted by platform migration and integration challenges as we shifted to a proprietary infrastructure,” said MTN.
In total, aYo generated U$2.8 million or R44.2 million in service revenue and $4.7 million or R74.6 million in premium income.
“We anticipate a return to growth in active paid policies with higher average revenue per policy in H1 2023,” said MTN.
In terms of partnerships, our joint venture (JV) with Sanlam is undergoing regulatory approvals across the various markets in which we operate, said MTN.
“We plan to launch the JV in H2 2022. This partnership will aid in accelerating our InsurTech growth on the continent, in line with our pan-African approach. ”
MTN Group is taking complete control of aYo, a mobile micro-insurance joint venture with SA’s third-biggest insurer Momentum Metropolitan.
The insurer is exiting the partnership.
“We concluded an agreement to increase our shareholding in aYo to 100% as MMH exits the partnership,” MTN informed investors.
“At the same time, we have announced a strategic alliance with Sanlam, which will help to accelerate our InsurTech growth on the continent, in line with our pan-African strategy. “
The aYo platform will form the base of the alliance with Sanlam, said the telco.
Sanlam and MTN announced today that they are joining forces in an exclusive strategic alliance to distribute Sanlam insurance and investment products across Africa, further developing MTN’s mobile financial services business.
The Alliance will build a digital insurance and investment business, which will be an integral part of MTN’s fintech offering. It will provide people across the continent with easier access to these services, particularly those sectors of the population that have typically been unable to access traditional distribution channels for such products.
The Alliance has the potential to pre-empt and adapt to digital disruption in markets where both Sanlam and MTN operate. It will also enable MTN to accelerate and scale its InsurTech offering through its brand and reach and by leveraging Sanlam’s licensing and geographical footprint, as well as its broad product capabilities and expertise. MTN InsurTech businesses currently have approximately 6 million active policyholders, with target of over 30 million policyholders by 2025 with this new Alliance.
The collaboration provides Sanlam with the opportunity to extend consumer access to its products and grow its Africa operations by providing insurance to MTN’s customer base across the continent, thereby deepening its extensive footprint in Africa.