Financial Services · South Africa
The Strategic Partnership: Algebra Technologies and Sanlam
An MOU with Africa's largest non-banking financial services company to bring embedded micro-insurance to over 20 million Africans.
- Client
- Sanlam
- Industry
- Financial Services
- Location
- South Africa
Algebra Technologies, leveraging its AstroPay platform and proprietary AI, has signed a Memorandum of Understanding (MOU) with Sanlam, Africa's largest non-banking financial services company. This strategic alliance aims to dramatically increase access to micro-insurance services across seven key African countries. The partnership combines Sanlam's financial strength and deep expertise in insurance with Algebra's technological capability to reach and engage the mass market through digital ecosystems.
The Challenge: The Micro-Insurance Gap
The majority of the African population is dangerously under-insured. Only about 3% of Africans have some sort of insurance coverage, leaving them highly vulnerable to economic shocks from illness, injury, or natural disaster — outside of South Africa, the general insurance penetration rate in Africa sits at a mere 0.73%. Traditional insurance models are often bureaucratic, expensive, and require formal employment, effectively excluding the vast informal sector where 60% to 80% of the population works. The African micro-insurance market, currently valued at $4.2 billion in 2024, is expected to grow significantly, reaching $8.2 billion by 2033 — demonstrating massive demand for tailored, low-premium products.
The Solution
The partnership is built upon Algebra's Pulse Active solution, an AI-driven platform designed to integrate insurance directly into the customer's daily life and foster positive behavioural change. Algebra's AI models analyse daily transaction data from mobile usage and AstroPay's BNPL activity to create a "behavioural profile" — enabling custom risk assessment for individuals in the informal market who lack traditional credit history, and lifestyle modification through targeted, personalised nudges and incentives that can lower insurance premiums. The core strategy is embedded insurance: shifting micro-insurance from a complex product that must be purchased to a seamless feature of existing transactions, bundled with financed smartphones, embedded into daily purchases via AstroPay's BNPL checkout at thousands of merchants, and integrated into digital payments for bills, airtime, and mobile money.
Impact
The project aims to connect over 20 million Africans to micro-insurance services, embedding premiums into customers' everyday spending so cover is affordable, accessible, and integrated into their regular habits. By leveraging technology to deliver innovative, accessible solutions, the partnership positions both Sanlam and Algebra as leaders in driving financial inclusion in the high-growth African market — a fusion of finance and technology that moves beyond traditional credit towards a holistic digital lifestyle solution that includes essential financial protection.