MTN looking to offer funeral insurance through WhatsApp

MTN South Africa has made an announcement that it is pushing deeper into financial services, revealing that it will be offering “budget-friendly” funeral cover to South African consumers.

The company also revealed that under its new Khava brand, MTN’s prepaid funeral insurance is the first of a range of insurance products designed for the local market. MyMTN Prepaid Funeral Khava will cost from R75/year, the telecommunications operator said.

Backed up by Sanlam, the insurance scheme is facilitated by aYo Intermediaries South Africa. The service “onboarding” process is done through WhatsApp, while collections and claims payments utilise MTN’s Mobile Money (MoMo) platform.

In a statement, MTN said: “From as little as R75 and no other fees, MoMo customers can secure coverage for either six or 12 months via a one-time premium payment, with benefits extending up to R20 000 under the MyLife Khava plan for individuals, and a collective sum of R33 750 for the MyFamily Khava plan, which extends coverage to family members.”

The chief of financial services at MTN South Africa, Bradwin Roper mentioned that the collaboration between MTN and aYo South Africa “reflects a strategic step towards rendering essential financial services more inclusive and responsive to the needs of ordinary citizens”.

Telecoms operators in South Africa, such as MTN and its rivals Vodacom and Telkom, have started to push aggressively into financial services in recent years as they look to broaden their revenue mix beyond voice and data products, where margins are under pressure