Vodacom‘s insurance and life assurance services are almost a year old, and have roped in hundreds of thousands of customers to its policies.
Since launching its cellular insurance and life assurance departments in 2012, Vodacom says that over 700,000 policies have been sold to its customers.
The bulk of the policies are related to contract and handset insurance, as well as funeral cover, Vodacom said.
In May 2012, Vodacom was awarded a long-term insurance licence by the Financial Services Board (FSB). The licence, along with the short-term licence granted earlier that year, enabled Vodacom to underwrite and sell insurance products, including funeral cover and life cover.
Vodacom CEO, Shameel Joosub, indicated that financial services would be a lucrative “fourth revenue cycle” for the mobile operator, with plenty of room to expand.
According to Vodacom, its financial services are competitively priced, and are proving to be profitable for the company.
Vodacom currently offers its customers a number of insurance products for cellphones, contracts, SIM cards, laptop or portable device cover and funeral cover.
Cellphone cover ranges from R35.00 per month (for cover up to R1000) to R195.00 per month (for cover up to R12,000), promising cellphone replacement within 24 hours across the network of Vodacom dealers.
Vodacom’s funeral cover offering comes bundles with select 24-month Vodacom contracts, with a monthly premium determined at the initial setup of the contract.
“Additional products will be added to the portfolio as the business grows, there is certainly potential and appetite for an expanded range of products,” a spokesperson said.