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Sanlam, PSG challenge FirstRand

The man who co-founded OUTsurance launches a competitor to his old company.

René Otto, the first CEO and co-founder of OUTsurance, has launched a competitor to his old company. Otto is the CE of MiWay, a financial services company that is a joint venture between Sanlam (JSE:SLM), Santam ((JSE:SNT) a subsidiary of Sanlam) and PSG (JSE:PSG).


Like OUTsurance, MiWay offers short-term insurance that cuts out the broker. However, MiWay differs from OUTsurance in that it offers other financial services – including home loans and credit life – under the same brand.


OUTsurance is part of the FirstRand group (JSE:FSR). FirstRand offers a range of financial services, but under different brands. For example, car financing is done through Wesbank, and private banking through RMB Private Bank (JSE:RMH).


Otto reckons it is cheaper and easier to offer products under a single umbrella. He says, this will allow MiWay to eliminate the need for clients to duplicate information in application forms. It will also allow “good risk” clients to benefit from lower prices on additional products.


Initially MiWay will focus on short-term insurance, motor warranties, credit life and home loans. But it aims to offer other financial products in time.


One of the distinguishing features of MiWay is its focus on the internet. Clients are able to take out a policy online, without making a call to a call centre. They are also able to manage their portfolios online.


MiWay also has a points-based rewards programme. Clients are rewarded for risk-lowering behaviour, loyalty and for referring new business. So if your friends or family encourage you into becoming a MiWay client, be sure to ask what’s in it for them.


Points can be used to buy products online, in a similar manner to FirstRand’s eBucks scheme.  

COMMENTS   6

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I got a quote this morning… and its far cheaper than outsurance!still not sure how the loyalty thing actually works (rewards structure) though.seems very decent!

Over many years so many products have seen the light. But why should a new one suddenly be cheaper? Are the established companies not inventive enough or are the newcomers chancers? Surely the large companies also do their homework.

Are too fat and lazy to be innovative and when they see the light it is too late…?

When these innovative companies start out,in order to get business,they are the cheapest or one of the cheapest.After becoming established the greed element kicks in and they become not so cheap.Outsurance and Discovery are two classic examples of this.

Hi Please contact me for a quote Thanks

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