Nashua Mobile has taken an unusual step for an Internet and cellular service provider – it's going to be selling insurance. The company will offer its customers a range of short-term insurance products, including car and home insurance products, throught its existing sales channel and direct marketing initiatives.
The insurance will be underwritten by Auto & General.
The insurance offerings will give customers a range of features and benefits, including a 14-day money back guarantee, fixed premiums guaranteed for a year, emergency assistance benefits 24 hours a day, lifetime guarantees on vehicle repair work, and online claim submissions.
Mark Taylor, MD of Nashua Mobile, explains: "As a company with an extensive retail network, relationships with hundreds of thousands of subscribers, and a powerful brand, Nashua Mobile is well placed to offer insurance products to customers around the country.
“We believe that consumers will appreciate the convenient access we can give them to an affordable set of short-term insurance products through direct sales channels such as the Internet.
“Affinity insurance – the sale of insurance products through a trusted consumer brand – is one of the biggest growth areas in the South African and international insurance markets."
South African consumers are becoming increasingly brand-conscious and like to do business with brands that they already have a trusted relationship with.
“Nashua Mobile views affinity insurance as an additional revenue stream, as well as a value-added service that will increase subscriber loyalty,” says Taylor. “It's an opportunity for us to leverage our brand and infrastructure to make life a bit easier for our subscribers while growing the business.
“The short-term insurance market is expected to grow alongside the emerging middle-class in South Africa, meaning that it will be a good growth opportunity for Nashua Mobile."
The potential South African home insurance market amounts to 12,97-million households, while the potential car insurance market adds up to 4,8-million cars. Motor vehicle insurance remains one of the largest contributors to the total short-term insurance industry in that it accounts for approximately half of all short-term insurance premiums. Only 33% of South African motorists have motor cover and direct insurers have only been able to secure between 25% and 30% of the industry.
Nashua Mobile has partnered with Auto & General because the company has a strong brand in the South African insurance market.