Former insurance executive launches innovative short-term insurance

by Jared PillayJanuary 24, 2020

DURBAN – Solvency is a short-term insurance solution that has been created by former insurance executive and entrepreneur Mutoda Mahamba.

The insurance solution is disrupting the status quo with an Insurance Savings Account (ISA) that is funded through car and household insurance premiums.

A former insurance executive, Mahamba worked at a range of prominent South African insurance brands for over a decade. Through his actuarial and product development work, he saw the opportunity to create a financial product that empowers consumers while still equipping them to manage the risk of negative life events, from burglaries to a car being written-off.

Mahamba said, “Solvency was launched to empower consumers to have more control over their hard-earned cash. The Insurance Savings Account enables consumers to use the motor and household premiums to save and invest”.

The website offers easy-to-use features that allow anyone to asses exactly how much they can save, supported by a quick sign-up process. Users only need to enter a few details to begin their Solvency relationship, which is 100 percent digital and can be managed using only a smartphone or a computer.

Clients choose how much of their monthly premium (up to a maximum of 50 percent) goes to their Insurance Savings Account (ISA), like the medical savings components on medical aids.

The decision is guided by how much excess the client is prepared and able to pay in the event of a claim. The excess is paid from the ISA and should the funds in the client’s ISA not cover their excess payment, only then would the client need to pay the difference from their pocket.

Source:

https://www.iol.co.za/business-report/entrepreneurs/former-insurance-executive-launches-innovative-short-term-insurance-41166211

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Jared Pillay