Vodacom's product portfolio has expanded, swerving away from the conventional services and products usually associated with SA's largest mobile market player.
The operator offers voice, messaging, mobile data, mobile payment services, tablets, smartphones, and now long-term insurance.
The operator confirmed this morning that it has been given the green light for an entrance into the South African insurance market, having recently been issued with a long-term insurance licence by the Financial Services Board.
Vodacom says the long-term insurance licence, granted last month - together with the short-term insurance licence it obtained on 22 March - allows the operator to underwrite and sell insurance products.
Entrenched market
The operator says: “Vodacom is able to leverage the direct links it has with its more than 30 million customers and dramatically reduce the costs traditionally associated with acquiring and serving customers.”
Vodacom says its reputation, as “one of SA's most trusted brands”, will also stand the company in good stead when it comes to attracting customers who are looking for insurance products.
In terms of Vodacom's insurance business proposition, the company says it will focus on being head and shoulders above other insurance providers in terms of value. “The vision is to dissolve the barriers to entry for all South Africans previously unable to access insurance products,” says Mark Taylor, managing executive of Vodacom financial services.
Strategic support
Vodacom's entrance into the insurance market will be underpinned by local direct life investment company, Frank.net - a subsidiary that is capitalised by Liberty Holdings. Frank.net, says the operator, will provide administrative and claims support for its long-term insurance offering.
Taylor says Frank.net's “proven track record” in the long-term insurance industry and “latest technology platforms” prompted Vodacom's decision to partner with the company.
Frank.net CEO Lenerd Louw says the scale of the company's direct capability will enable it to support the delivery and administration of insurance programmes, in turn facilitating Vodacom's leveraging of Frank.net's affinity platforms. “We look forward to supporting Vodacom as they grow and develop new products to address the financial needs of the South African population.”
While Vodacom confirmed insurance had been in the pipeline since August last year, it could not comment on the types of products the company will ultimately offer its customers, nor on a time frame as to when the service will be available.
“[Vodacom's] entry into the insurance market was part of our overall financial services strategy which we've been working on for some time. We plan to offer both short-term and long-term insurance products. Details will be announced in due course,” says Taylor.
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