MTN in micro-insurance play with MMI

Johannesburg - African mobile network MTN Group [JSE:MTN] and insurance-based financial services player MMI Holdings  [JSE:MMI] have inked a tie-up.

The joint venture, branded as aYo, will focus on delivering micro-insurance solutions across Africa.

MTN is Africa’s biggest mobile network with over 230 million subscribers and the company plans to tap this base to sell its insurance offering.

“As MTN, we are excited about this partnership as it gives us an opportunity to further expand our bouquet of mobile financial services offerings across our footprint,” said Herman Singh, group chief digital officer of MTN, in a statement.

“Working with MMI, and harnessing the rapid growth of mobile on the continent, we will be able to leverage our core competencies, strong brands and scale to deliver much-needed insurance solutions to our customers,” said Singh.

Meanwhile, Danie Botes, group chief operating officer of MMI Holdings, said the partnership will create new revenue streams for the company.

Botes said the partnership would further “help achieve significant scale, explore opportunities in new markets and segments, and capitalise on the growth of micro insurance on the continent”.

“The partnership will also allow us to further extend our client-centric vision of financial wellness across the Africa continent,” said Botes.

The aYo offering is planned to be rolled out in a number of African countries from the end of 2016, said the companies in a joint statement.