Vodacom (VOD) has obtained a long-term insurance license to venture into South African insurance industry from regulatory agency, Financial Services Board (FSB).
The current license is a long term along with the short term license granted by the regular earlier this year, which enables Vodacom to underwrite and market insurance products.
Vodacom said that it has a customer base of more than 30 million, which will alleviate the costs traditionally associated with acquiring and serving customers, as reported by Independent Online.
Expressing his views on the venturing new business avenues, Vodacom Financial Services managing executive Mark Taylor said the form is focused on providing Vodacom customers with unbeatable value.
"The vision is to dissolve the barriers to entry for all South Africans previously unable to access insurance products," Taylor added.
Vodacom has selected FRANK.NET, a South African direct life investment company to assist in administrative and claims support for its long term insurance offering.
FRANK.NET CEO, Lenerd Louw, said: "The scale of FRANK.NET’s direct capability enables us to easily support the delivery and administration of insurance programmes to help Vodacom leverage from our proven affinity platforms."