Mobile Phones to modernise insurance sector

Mthulisi Sibanda — MOBILIFE, the new financial services provider, has officially entered the insurance space with a number of innovations it hopes will transform the industry.

The company has launched FoodSurance, said to be the first life cover in Africa that will pay out a weekly grocery voucher to families for up to five years after death of the policyholder.

MobiLife is also Africa’s first 100 percent mobile financial services provider, providing insurance cover through smartphone.

“We want to offer South Africans from all walks of life practical solutions to make life insurance accessible, easier, faster and affordable. Our objective is to help more South Africans become insured, so they are able to look after their families when they need it the most – when they are no longer around to do so themselves,” said MobiLife founder and CEO, Frank Schutte.

MobiLife offers two standalone products, the MobiLife FoodSurance plan and the MobiLife funeral plan.

According to Schutte, while there are hundreds of life policies and funeral plans available in South Africa, the few that do make provision for a grocery benefit do so only for the funeral itself.

Premiums are pegged at R49 per month.

Schutte pointed out that in 2015 the long-term insurance industry in South Africa lapsed over 6 million policies.

“At MobiLife we understand that in the 2016 economy money is really tight, and that in some months people can be strapped for cash and may need to miss a premium or two to get back on their feet. At MobiLife we still provide cover to our customers even when they miss a number of premiums,” said Schutte.

CAJ News Agency

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