Rocket Internet’s online store Jumia is set to retail insurance policies to its users across Africa months after the firm signed a €75-million investment deal with French insurer AXA Mansard Insurance for an 8% stake early this year.
AXA and Jumia says they’ll launch more financial services and insurance products for the youth across Africa with the AXA investment and partnership even putting on pressure incumbent insurance firms to become innovative to reach the growing youthful population.
Speaking at the firm’s Q1 2016 Earnings Conference Call, Rocket Internet’s CFO Peter Kimpel said Jumia’s overall business operationally is focused on building for the future and is now accelerating the strategic initiatives with existing shareholders having kicked off the initiative with the new shareholders Axa and Orange.
“Now offering insurance products both for the business, so guarantee/warranty extension type of insurance as well as life insurance on a separate Jumia branded page. So it’s already been put into operation and so after a promising start,” said Kimpel.
Jumia is also set to partner with Original Equipment Manufacturers (OEMs) to insure mobile devices purchased on the site giving AXA an easier entry into Africa than the conventional mergers and acquisitions. AIG is also working on custom-made insurance products to its client base through its ecosystem of marketplaces and classifieds services.
Earlier, during the investment announcement, Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and AIG said: “With Rocket Internet’s extensive background in online business models, MTN as leading mobile carrier with its broad African presence, and now the partnership with AXA in insurance products and services, we are in a great position to continue to innovate and connect businesses to the fast growing consumer demand.”
AXA Mansard Insurance plc was incorporated in 1989 as a private limited liability company and is registered as a composite company with the National Insurance Commission of Nigeria (NAICOM). The Company offers life and non-life insurance products and services to individuals and institutions across Nigeria whilst also offering asset/investment management services, medical insurance solutions and pension fund administration through its three subsidiaries AXA Mansard Health Limited, AXA Mansard Investments Limited and AXA Mansard Pensions Limited.
The Company was listed on the Nigeria Stock Exchange in November 2009 and has Market Capitalization in excess of N28 billion thereby remaining the biggest insurance company on the Nigerian Stock Exchange.
AXA is also present in Cameroon, Gabon, Ivory Coast, Morocco, Senegal and Algeria. AXA has over 20 years’ continuous presence in Africa.