Digital insurance for small business’.

Santam, in collaboration with MoyaApp, has introduced a pioneering digital insurance solution specifically designed for micro township enterprises in South Africa. This innovative offering aims to provide financial security and aid in recovery for these businesses in the event of a loss. With statistics revealing that a significant percentage of local small businesses fail within the first five years, there is a pressing need for greater support and a more conducive environment for the small, micro, and medium-sized enterprise (SMME) sector.

Santam, aligning with its refreshed strategy, has prioritized the use of digital platforms to engage with policyholders, expand into new market segments, including the uninsured sector represented by township enterprises, and bridge the risk protection gap. The digital Emerging Business Insurance solution, now available, caters specifically to the township enterprise sector in partnership with MoyaApp.

The entry-level insurance solution offers three distinct coverage options at different price ranges: the Starter package, available at R75 per month; the Standard option, priced at R125 per month; and the Premium solution, offered at R195 per month. These options provide coverage for various risks, including damage to stock and contents (such as fire, explosion, acts of nature, malicious damage, and impact of objects), compensation for personal accidents resulting in the owner’s death or permanent disability, and protection against political riots through SASRIA cover. The coverage amount for each risk increases in relation to the chosen package.

Furthermore, the Standard and Premium cover options include cell phone insurance for the business owner’s smartphone, recognizing its vital role in ensuring uninterrupted business operations for township entrepreneurs who heavily rely on their phones. Notably, the Santam Emerging Insurance solution places significant importance on SASRIA cover. Each package provides coverage of up to R500,000 for special risks, such as civil commotion, public disorder, strikes, riots, and terrorism.

Various research studies highlight the challenges faced by township enterprises, including limited access to finance, skills shortages, and high crime rates in certain areas. Having insurance coverage can offer extensive benefits. For example, during the July 2021 riots, numerous businesses were affected, with a considerable number of small-scale township enterprises unable to resume operations. Tailored insurance solutions for the emerging market are therefore essential for safeguarding against such systemic risks.