Published On: Tue, Oct 20th, 2015

Telkom, Old Mutual pledge value to clients

Telkom CEO, Sipho Maseko

Telkom CEO, Sipho Maseko

JOHANNESBURG, (CAJ News) – IN what is said to be the first such collaboration in the competitive South African mobile industry, Telkom and Old Mutual have announced a co-operation agreement to offer innovative new solutions to their customers.

The first of these will see Telkom’s prepaid customers receive loyalty funeral cover – underwritten by Old Mutual – valued at R10 000. This will be at no additional cost.

Telkom customers on the Sim-Sonke and Telkom More prepaid plans will qualify for the R10 000 funeral cover by simply recharging with R100 or more airtime, through single or multiple recharges amounting to R100 in
one calendar month, opting in and nominating a beneficiary.

The loyalty funeral cover will start at the beginning of the following month and will be valid until the end of that particular month.

Old Mutual said it had developed an innovative micro-insurance voucher system that will underpin this solution, enabling customers to opt-in, nominate and manage a beneficiary, track their loyalty funeral cover and
even submit a death claim using the Old Mutual App or USSD.

Telkom Chief Executive Officer, Sipho Maseko, welcomed the partnership.

“This innovative offer is a South African first. While competitors may offer paid premium insurance to their customers, Telkom will be rewarding customers for their airtime spend with funeral cover at no additional cost from one of the leading insurers in the country, Old Mutual,” said Maseko.

His Old Mutual South Africa counterpart, Dave Macready, said the partnership which is an example of the effective digitalisation of financial services.

“Giving South Africans easy access to insurance products through their mobile devices not only reduces cost, it accelerates financial inclusion, which is critical to reducing poverty and inequality which contributes to boosting our nation’s development and future financial wellbeing,” said Macready.

Officials added that while this partnership is currently focused on funeral cover, the two companies will continue to explore additional innovative options to diversify and deliver new value added services to the market.

With some 1,8 million subscribers, Telkom is the smallest mobile network operator in the country.

CAJ News

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