Partnership launch
Photo by: Creamer Media's Tasneem Bulbulia
Vehicle manufacturer Chery, banking and financial services provider Absa and insurance technology platform provider the Innovation Group on July 17 officially launched an insurance partnership that aims to ensure post-warranty assurance for the growing number of Chery customers in South Africa.
It was highlighted that, this month, Chery reached a milestone of 20 000 customers in the country, after merely 18 months, and that the company is now sixth in the passenger vehicles segment in South Africa.
The three entities collaborated over a series of months to co-create these products, which have been designed to assist customers and vehicle owners to better manage the costs of owning a vehicle once the factory warranty has expired.
These products include an extended warranty proposition and service plans, which aim to enhance Chery’s offering in the country.
The extended motor warranty will activate immediately after the normal warranty plans expire and the extended service plans operate similarly.
Speaking to Engineering News at the launch event in Johannesburg, Absa insurance business managing executive Collin Molepe said this provides another version of financial inclusion.
He explained that after the initial warranty of vehicles, issues could still persist, therefore, this partnership aims to ensure that customers are adequately secured in terms of any breakdowns or problems encountered with the product.
Moreover, he says that, from a financial perspective, it ensures that customers are not out of pocket to finance any breakdowns that occur over time.
Chery, as the original-equipment manufacturer, makes and distributes the products into the market; Absa, as the insurer and underwriter will bring the capability of the motor warranty and service plans; and the Innovation Group will bring its expertise in administrating these products and services.
“One of the most important things in any offering that you put out in the market is to leverage the strengths of each party, so that the client can enjoy a better consumption of the product, pre and post the sales process,” Molepe outlines.
He adds that the partners intend to grow its footprint, both in terms of new customers as well as those that have already bought vehicles.
Moreover, Molepe says the entities are also working on creating further propositions and innovations, and expanding the list of products that best fit Chery and will be taking these to the market in time as well.
He highlights that Chery has considerable ambitions to grow in the country and that Absa is aiming to leverage and assist with this.