Mr Price Money – a division of clothing and homeware retailer Mr Price Group – has partnered with Cape Town-based start-up Roots to establish a simplified life insurance solution called Life Matters.
The insurance solution, which is underwritten by Momentum Metropolitan-owned Guardrisk, will be offered to the retailer’s existing credit customers.
It will offer qualifying clients between R100 000 and R200 000 worth of life cover, depending on their needs.
Roots CEO Louw Hopley says Mr Price Money’s expansion into microinsurance comes at a time when the industry is registering growth globally. He added that the product will be welcomed by low-income households, which are currently underserved by mainstream insurers.
“This product is a prime example of how household names with a strong brand identity and existing customer base can extend the services they offer to their customers by adding a suitable insurance product,” Hopley said in a statement.
“The product has been designed with Mr Price’s existing customers in mind and fulfills a very real need in the market. This means it can better serve its customers, while at the same time driving greater revenue and operational efficiency through its existing financial services products.”
Mr Price chose not to comment on the venture when asked by Moneyweb.