Vodacom Provides Customers with Affordable Insurance
February 24, 2015
Vodacom operates in four countries as well as South Africa.
Recently it has broken into the life and funeral insurance realm.
They received the go-ahead to enter the insurance market in South Africa and have been awarded a long and short term insurance licence by the Financial Services Board.
This Allows Vodacom to Underwrite and Sell Insurance Products to Valued Customers
Other benefits offered by Vodacom:
- Mobile data
Vodacom will be able to sell insurance products directly to consumers rather than working through an intermediary such as Santam.
In less than 3 years, the mega telecommunications company has signed up some 400,000 insurance policies and adds in the region of 13,000 customers each month.
They are focused on providing their customers with unbeatable value and want to be able to offer insurance to all South Africans who were previously unable to access insurance products.
They can offer more value to their customers and as a trusted brand this will be a major benefit when attracting customers looking for insurance products
We’re New, Motivated and The Sky’s the Limit
Non-traditional insurers like Vodacom are taking the insurance market bull by the horns, taking market share from traditional insurers.
They have appointed Frank.net, a direct life investment company which is owned and capitalized by Liberty Holdings. Frank.net will provide administrative and claims support which is good for Vodacom as they have a proven track record in the long term insurance industry.
Check Out our Handset and Phone Insurance
Vodacom offers short-term insurance for cellphones and laptop but now they are selling life insurance and funeral policies. It’s looking to add these new products to its current handset insurance offering.
With life insurance at a reasonable rate, simple terms and thousands signing up, our insurance unit is aiming high for a growth rate of 30-40%.
We are looking into non-traditional mobile offerings in efforts to boost our income. CEO Shameel Joosub says Vodacom will continue to invest in its network.
Among its plans to increase its revenue stream is fibre play, with plans to connect well over 3 500 office parks by the end of March. In the 6 months to March, the huge telecommunications operator grew revenue 1 percent to R37.5 billion.
We think Big On Your Behalf – Just Look at the Stats
Vodacom spends some R1m a day on replacing stolen and broken cell phones. Cellphone insurance is fairly expensive because of high claims, but it still makes a margin and we are expecting the biggest growth to come from life insurance.
We are focusing on developing new products with the aim of broadening their appeal and offering better value to our customers. This means that next time you go into a Vodashop, you can add in some long-term insurance.
Long-term insurance in South Africa is dominated by the likes of Liberty, Discovery, Sanlam and Old Mutual. To enter the market can be intimidating but Vodacom is a strong brand with innovative products.
Vodacom customers can expect great value from their insurance products. Their insurance offerings will be added and linked to their core telecommunication product offerings.
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All info was correct at time of publishing