According to our sources, MTN Zambia and African Life Assurance have entered into a deal to provide micro insurance cover to MTN mobile customers. MTN Zambia said the partnership will help bridge the gap in providing insurance to the lower end of the market.
The product is not new to the market, having been around for over 2 years and was developed by the previous Marketing Head, Surie Ramasary. Dubbed ‘MTN Life after Life’, the product will enable MTN customers to access life insurance on their phones at premiums paid from their airtime.
Customers who sign up for the policy pay premiums from as low as ZMK 1.50 per month from their mobile phones.
Our take is that the partnership will allow MTN to use the insurer’s and their respective agents’ footprint. However, how much the service will fulfill the customer promise will have to be assessed with time.