MTN South Africa has unveiled MyMTN Prepaid Funeral Khava, aimed at offering South Africans an accessible and budget-friendly insurance coverage when they may need it most. South Africans can now protect their families from financial burdens after a loss for as little as R75 per year.
Under its new Khava brand, MTN’s prepaid funeral insurance is the first of a range of insurance products designed for the local market. Backed by Sanlam and facilitated by aYo Intermediaries South Africa, the funeral insurance offering aims to cater to the unique needs of the SA market.
MyMTN Prepaid Funeral Khava offers a user-friendly onboarding process accessible through WhatsApp, while premium collection and claims disbursement leverage the seamless capabilities of MTN’s Mobile Money (MoMo) platform.
From as little as R75 and no other fees, MoMo customers can secure coverage for either six or 12 months via a one-time premium payment, with benefits extending up to R20,000 under the MyLife Khava plan for individuals, and a collective sum of R33,750 for the MyFamily Khava plan, which extends coverage to family members.
Bradwin Roper, Chief of Financial Services at MTN South Africa, emphasised that these new offerings underscore the idea that insurance, particularly funeral coverage, need not be intricate or financially burdensome.
“Our mission revolves around democratising insurance by making it affordable and easily accessible to all. Through the simplicity of premium payments via MTN MoMo, individuals and families can find reassurance in knowing that, in the unfortunate event of loss, funds will be available for funeral expenses, household obligations, and even educational expenses,” said Roper.
The MTN Khava portfolio’s administration will be steered by aYo South Africa, an insurance platform entity jointly owned by MTN and Sanlam. Having commenced operations in January 2017 as a pan-African insurance provider, aYo boasts an active user base exceeding 4.2 million policyholders across key regions like Uganda, Ghana, Zambia, Côte d’Ivoire, Cameroon, and Nigeria, according to MTN’s most recent quarterly trading results.
Julius Sikhuza, who has been appointed CEO of aYo South Africa, underscored the pivotal partnership between MTN and Sanlam, amalgamating a prowess for financial product distribution with an in-depth comprehension of the domestic insurance landscape. Sikhuza says, “Our overarching objective remains the enhancement of accessibility to financial service products, such as insurance, for the South African population and beyond. By facilitating innovations like MTN Khava, we are actively addressing significant societal challenges in a meaningful and tangible way.”
Sikhuza was previously General Manager of Mobile Financial Services at the MTN, where he led the team responsible for the launch of the division – including payments, lending, and insurance – as a new business unit. His range of experience across the financial services value chain makes him ‘a natural choice’ to lead aYo’s operations in South Africa.
“This pioneering collaboration between MTN and aYo South Africa not only redefines the insurance domain but also reflects a strategic step towards rendering essential financial services more inclusive and responsive to the needs of ordinary citizens. In an environment where securing the future is of paramount importance, MTN’s Prepaid Funeral Khava represents a beacon of assurance for South Africans seeking comprehensive yet affordable coverage – because everyone deserves the benefits of a modern, connected life”, concludes Roper.
