Andela Goes on Digital Insurance Partnerships Run in South Africa

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Image sourced from TechCabal.

Andela, a global engineering talent outsourcing company launched in Nigeria in 2014, has gone on a partnership run in South Africa, joining forces with both digital insurance startup Root and financial services company Momentum Health Solutions. The announcement of both partnerships was released today.

According to the announcement from Andela, the company is partnering with both Root, a Cape Town-based startup building infrastructure for the digital insurance economy, and Pretoria-based Momentum Health Solutions to offer medical aid to Andela’s contractors.

“By partnering with us, Andela is not only supporting us in offering more health to more South Africans for less, but at the same time, their affiliates gain access to the best healthcare cover available in South Africa,” says Hannes Viljoen, CEO of Momentum Health Solutions.

Andela operates a global talent marketplace connecting software engineers with job opportunities at global companies. The company wants to increase the value it provides to these contractors by making it easy for them to access quality medical aid directly from the Andela web portal. Last year it achieved a $1.5-billion valuation in its latest series E round of funding.

Root delivers ready-made digital insurance products on API that can be seamlessly integrated into a company’s customer journey to enhance its value proposition and business.

Root processes millions of policies across dozens of insurance products on its platform, according to Andela.

“The insurance products on our platform are underwritten by our network of leading insurance providers and our customers never have to deal with an insurer. We work with customers to identify opportunities in their value chain that can be solved with insurance and, in Andela’s case, medical aid,” explains Root CEO Louw Hopley.

“These can then be launched almost immediately with no risk, no new systems, and at near-zero cost. They just plug Root’s Insurance-on-API into an existing customer journey and go live,” Hopley adds.

Momentum Medical Scheme’s medical aid options are available to the Andela user base in South Africa over the Root API from April 2022.

The intention is to enable digital insurance offerings to the Andela contractor base across more regions in time.

“Insurance is historically sold, not bought, while Root aims to enable insurance to be placed seamlessly in user journeys where the insurance need is highly relevant or top of mind. For us, this is a particularly apt intervention, as so much of what Root does is about making it easier for developers, such as Andela’s customer base, to integrate insurance offerings in their product offerings,” says Hopley.

“Our API packages all the building blocks needed to launch a fully compliant insurance product in a matter of days,” he states. “There is no significant upfront investment of time or money required, while we take our fee as a percentage of the premium sold over the API,” they add.

Root provides Andela with a hosted front-end application that can be embedded into the Andela user experience to onboard Andela users onto a Momentum Medical Scheme medical aid plan. Andela users will also be able to access information and medical aid services directly through this embedded application.


Edited by Luis Monzon
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