South Africa-based insurtech company, Simply Financial Services has secured an undisclosed amount from the Hollard Group.
A larger strategy by Hollard, which has already made seed investments in other insurtech disruptors like Naked and Dotsure, is represented by its investment in Simply Financial Services. This fits nicely with Hollard’s broad objectives to increase its footprint in technologically advanced insurance products.
Simply was founded in 2016 by businessmen Anthony Miller and Simon Nicholson. The startup’s goal is to revolutionize the insurance market in South Africa by providing customized coverage and innovative payment methods. At first, Simply concentrated on giving individuals and domestic workers direct life, disability, and funeral insurance. The business increased the scope of its offerings in 2020 to include brokers and SMEs.
According to Hollard, Simply’s strategy redefines standard life insurance for people with lower and intermediate incomes.
Co-founder Anthony Miller explains, “The current model for long-term insurance in the mass market is unsustainable. There’s an oversupply of expensive standalone retail products, particularly funeral cover, with high policyholder turnover and limited value for customers.
“Simply reimagines this model by offering customers bundled benefits like life, disability, and funeral coverage, often with employer premium contributions. Thanks to high retention rates, our solutions deliver positive customer outcomes, whether through our cost-effective group option or our flexible retail option.”
Through white-label alliances with companies looking to improve their digital capabilities, Simply’s business model is also scaleable. Three of these agreements are currently maintained by the company in South Africa, and it plans to increase its global footprint.
The value of Simply’s “superpowers” – its unique technology platform and complete insurance capabilities — is emphasized by Willie Lategan, CEO of Hollard Group. “These resources will strengthen Hollard’s offers and make it possible for new products and features to be released quickly.”
Miller emphasizes that Simply’s support from the biggest privately-owned insurer in South Africa enables it to expand into new markets and carry out its purpose of protecting the financial futures of millions of people.
The decision by Hollard is anticipated to have a substantial effect on the South African mass market’s life insurance industry.
Author
