Shoprite will now sell Outsurance funeral plans – after a 13-year relationship with Old Mutual
- Shoprite will now be selling Outsurance funeral plans at its outlets, including Checker and Usave, the companies announced on Monday, promising "a very competitively-priced funeral policy".
- More Outsurance products are due to follow.
- Shoprite has been selling Old Mutual funeral plans – currently advertised as "the most affordable funeral policy we could find" since 2007.
- It is not yet clear what now happens to that partnership.
- For more stories go to www.BusinessInsider.co.za.
Shoprite, SA's largest food retailer, will start selling Outsurance funeral policies through its outlets, including Checkers and Usave, the companies announced on Tuesday.
A "very competitively-priced funeral policy" will be the first product available, the companies said in a statement, "with numerous additional offerings in the pipeline".
Old Mutual did not get a mention.
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Shoprite has been in partnership with Old Mutual since 2007, when the retailer started selling accident and funeral cover "in the same manner as they would buy cell phone starter packs".
As of Tuesday, Shoprite's money market was still punting the Freedom Life funeral policy ("the most affordable funeral policy we could find"). Freedom Life's policies are underwritten by Old Mutual.
Shoprite was not immediately available to comment on the current status of their relationship. But Shoprite and Outsurance seemed to describe a deep partnership.
"This collaboration is a natural fit," said Shoprite's financial services general manager Jean Olivier in the joint statement.
"Two well-known and trusted South African brands are bringing together their complementary skills and assets such as retail reach, digital capabilities, insurance innovation and entrepreneurial spirit," said Outsurance CEO Danie Matthee in the same statement.
Old Mutual said it had "previously distributed an Old Mutual branded funeral product in Shoprite branches. This product was closed to new business, effective 2014."
On the current relationship with Shoprite, Old Mutual said it "underwrites white labelled products" for Shoprite.
"The distribution and premium collections on some of these products are facilitated through Shoprite’s stores and Money market counters."
It did not speak to the future of that relationship.
In its 2019 annual results, Shoprite reported that "commission on third party account and insurance payments" for the year had amounted to R158 million.
It also disclosed R350 million in dividends received from its wholly-owned subsidiary, Shoprite Insurance Company.
The Outsurance policy Shoprite will now sell comes with the bonus the company is named for, one month's premium back for every 12 paid, and a R1 000 Shoprite gift card immediately on claim.
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