SOUTH AFRICA – Santam, short-term insurer, is increasing its interest in insurance technology (insurtech) company JaSure by acquiring the remaining 49% shareholding.
In a statement, the insurer says the move is aimed at enhancing its digital offering.
In 2020, Santam acquired 51% shareholding in JaSure. The company says the buyout is a significant growth enabler that will realise digital offerings for clients across the Santam Group, particularly in its commercial and personal (C&P) insurance business.
“We believe we can open up the potential for increased value-add to our clients and the Santam Group through a 100% ownership,” said Edward Gibbens, Santam’s executive head of the C&P insurance business.
“We aim to leverage the existing and powerful client experience and younger market reach of JaSure, while maximising the Santam efficiencies and wider distribution capability, including the Sanlam Group.”
Founded in 2017, Jasure operates completely digitally through an app, competing with other fastest growing insurtech companies like Naked and Pineapple Insurance.
It will allow Santam to access the younger digital natives that make up a big portion of the potential client base for financial services companies in SA now, adding to Santam’s market share, which is currently over 22%.
JaSure offers digital insurance to clients, effectively empowering them to choose what they want to insure and when to do so.
The insurtech company is app-based and provides insurance for motor vehicles and portable possessions like cellphones, laptops, photographic equipment, bicycles, other sports and camping gear, eyewear and musical instruments, among others.
Clients can purchase insurance instantly for an individual asset, with the option to switch cover on and off, using the app, based on their needs.
Jaclyn Prior, JaSure’s managing director, says the company is excited about the next chapter in the relationship with Santam.
“We have co-created a unique model with Santam that balances JaSure’s entrepreneurial core and digital innovation, and Santam’s depth of insurance expertise,” Prior said.
“The JaSure founders and management team are excited about the next chapter which enables further collaboration and increased support; it elevates our ability to take on a growing market opportunity. This is a significant milestone for the JaSure business.”
Jasure MD, Jaclyn Prior, said the company was excited about its next chapter under Santam, as it will improve the ability to take on more growth opportunities.
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