Sanlam and aYo partner to make insurance more accessible for Nigerians

Sanlam, Africa’s largest insurer, has partnered with aYo Holdings, a microinsurance fintech, to provide affordable insurance to Nigerians. aYo will act as a technology service provider to Sanlam in Nigeria, coordinating technical integration for the underwriter of microinsurance products and providing platform services to enable mobile money and third-party payment offerings. This will enable Sanlam to offer easy-to-understand, convenient, and affordable products that challenge traditional insurance offerings in the market.

Kayode Odetola, CEO of aYo Nigeria, said the company aims to drive greater financial inclusion by using technology to make financial services more readily available across the country.

Details about the partnership

• The partnership will focus on providing affordable insurance to low-income Nigerians.
  It will use aYo’s digital platform to reach a wider range of customers.
• The partnership will help to boost financial inclusion in Nigeria.
• This partnership between Sanlam and aYo is a positive step in the development of the Nigerian insurance industry. It is a sign that the industry is committed to making insurance more accessible and affordable for Nigerians.

Mr Odetola said the low insurance penetration rate in Nigeria (less than 1% of GDP) is one of the lowest in Africa. “Most people think insurance is a luxury product, but we want to show that people with all levels of income can get peace of mind at an affordable cost, to help take care of their financial health in the face of unexpected events,” he said. 

•  “From the seamless onboarding process to the ability to track cover in real-time, we aim to change the perception of insurance by dealing with one of the most important challenges, which is trust,” Mr Odetola added.

Here are some of the benefits of the partnership for Nigerians:

• Affordable insurance: The partnership will make insurance more affordable for Nigerians, as aYo’s digital platform will help to reduce costs.
• Convenient access: Nigerians will be able to access insurance through their mobile phones, which will make it more convenient to buy and manage policies.
• A wider range of products: The partnership will offer Nigerians a wider range of insurance products, including life insurance, health insurance, and property insurance.

 At launch, the Sanlam Recharge with Care product will offer up to N300,000 in life cover and up to N6,500 per day in hospitalisation cover that can be purchased using mobile money wallets and other payment options. Customers can sign up using the progressive web app (PWA) www.sanlam.ayo.com.ng, with a USSD option planned for phase 2

 Mr Odetola said telco-driven financial services products were well suited for Nigeria’s vast underserved population, which is expected to benefit significantly from Sanlam’s affordable life and hospitalisation covers. 

 Tunde Mimiko, Chief Executive of Sanlam Life Insurance Nigeria Limited, said the aYo partnership reflects Sanlam’s commitment to deepening insurance penetration in Nigeria by providing accessible life insurance products to more people. 

•  “At Sanlam Nigeria, we aim to form partnerships with organisations who understand the local market and share our values and culture. We’re constantly seeking innovative ways of bringing affordable and fit-for-purpose insurance to all Nigerians. With a trusted partner like aYo on board, the possibilities are as endless as they are exciting,” said Mr Mimiko.   

 aYo launched in January 2017 in Uganda and has since expanded its operations across Ghana, Zambia, Côte d’Ivoire, and Cameroon, through its stakeholder partnerships with MTN and Sanlam. 

• “Insurance, and the peace of mind it provides, has become more important than ever in today’s fast-paced world, where risks are a part of our daily lives. You never know when you will have to pay to get back on your feet after an accident or an illness. Often, the cost is so large that it goes beyond your immediate financial capacity, and that is where insurance will be most helpful,” Mr Mimiko added. 

The partnership between Sanlam and aYo is a positive development for the Nigerian insurance industry. It will make insurance more accessible, affordable, and convenient for Nigerians.

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