Telkom launches life insurance business with Guardrisk
Johannesburg - Telkom has launched Telkom Financial Services, which includes a life insurance business that will initially sell funeral insurance, written out of a Guardrisk Life-cell captive, to its more than 12 million customers.
The telecoms giant owns a significant share of South Africa’s mobile market, recording 23.9% growth in active mobile subscribers as of 31 March 2020, effectively giving it one of the most significant distribution channels for insurance products in South Africa.
Sibusiso Ngwenya, Managing Executive for Telkom Financial Services said that “In recent years Telkom has made a strategic shift to digital distribution, which puts it in an ideal position to distribute insurance products using its considerable digital structure and intellectual property.
“Telkom customers already have a strong affinity to our brand, they trust us; being able to launch our funeral insurance product to our existing customer base gives us the ideal platform to get the business off the ground by offering our customers customised life insurance products, starting with the Telkom Funeral Plan.”
Telkom’s goal in building an insurance business of scale is to be able to use its size to negotiate the best deal for its customers. Its confidence in Guardrisk Life is underscored by the business’ decision to also incept a first-party Guardrisk Life-cell to underwrite the employee benefits offered to its own staff.
Francois Schaap, Managing Executive of Guardrisk Life said: “This strategic partnership between Guardrisk Life and Telkom creates an exciting platform through which to provide Telkom customers with affordable, innovative insurance products. We’re excited to partner with Telkom, one of South Africa’s best-known brands, not only to offer them the opportunity to sell insurance to their customers but also to let them shape employee benefits that suit their employees’ specific needs.”
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