Santam has taken over on-demand insurance fintech, Jasure, buying the remaining 49% stake in the group which it did not already own.
The country's largest short-term insurer acquired a 51% stake in Jasure in 2020. The outright buyout is a strategic move to increase Santam's digital offerings to its customer base and potential new clients, particularly in the commercial and personal (C&P) insurance business.
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%.
"We believe we can open up the potential for increased value-add to our clients and the Santam Group through a 100% ownership. 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, said Santam's executive head for commercial and personal insurance, Edward Gibbens.
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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