Vodacom has received the go-ahead to enter the South African insurance market having been recently awarded a long term insurance licence by the Financial Services Board (FSB). This licence, along with the short term licence granted earlier this year, allows Vodacom to underwrite and sell insurance products.
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.
“These savings enable Vodacom to extend greater value to its customers. Vodacom is also recognised as one of South Africa’s most trusted brands, which is likely to be a major benefit when it comes to attracting customers who are looking for insurance products,” Vodacom said in a press statement.
“Our insurance business proposition is simple; we are focused on providing Vodacom customers with unbeatable value. Our customers will benefit from the value and convenience that we are able to offer. The vision is to dissolve the barriers to entry for all South Africans previously unable to access insurance products,” said Mark Taylor, Managing Executive of Vodacom Financial Services.
As part of the strategic decision to enter the insurance market, Vodacom appointed FRANK.NET, which is owned and capitalized by Liberty Holdings, to provide administrative and claims support for its long term insurance offering.
“FRANK.NET is a good fit for us. The company has a proven track record in the long term insurance industry with the latest technology platforms and innovative ways to provide an excellent customer experience,” said Taylor.
Vodacom is looking at providing a full suite of insurance products relevant to its customers. Further details will be provided closer to the time of launch.