African micro-insurance fintech firm aYo Holdings, a joint venture between telecoms giant MTN and financial services group Momentum Metropolitan Holdings, has breached the 10 million customer mark in under four years.
The company, which says it provides fast, convenient, easy to use hospital and life cover directly to a user’s mobile phone, has already paid out in excess of R15 million in claims.
CEO Marius Botha says the milestone is set to trigger a period of further growth, as the company evolved into a major player in the African micro-insurance market by adopting a “pay as you go” insurance model, where its policyholders have the flexibility that allows them to have the cover they need at any given time.
“The partnership with MTN has really been the key that unlocked the ability to deliver this product. As a result, millions of Africans have access to and are engaging with life insurance for the first time – and we cannot underestimate what this means to them in terms of driving financial inclusion.”
Launched in Uganda in January 2017, aYo has since started operations in Ghana and Zambia, with plans to expand into Côte d'Ivoire and Nigeria next year.
“The big thing about micro-insurance is that it protects those who need it the most. People with low income need insurance even more than those with higher incomes, because they are more vulnerable and have a smaller cushion of resources to draw upon in times of need,” says Botha.
aYo says many clients use the payouts from their policies to not only pay for their hospital bills, but use the balance to buy food or schoolbooks, so they can send their children back to school.
Botha says: “There’s no doubt that the impact of micro-insurance is transformative, as it shields millions of Africans from the economic shocks that would otherwise keep them locked into an endless cycle of poverty.”
While mobile networks provide the ideal delivery mechanism for the spread of micro-insurance across the continent, Botha says the company’s growth has also depended on understanding the nuances of each market, and creating products that cater for the specific needs of the target market.
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