Credit life insurance is bigger than life insurance and no one knows about it, says Yalu founder Nkazi Sokhulu

In a recent interview with CNBC Africa, Nkazi Sokhulu, the Co-founder and CEO of Yalu, shed light on the revolutionary changes his company has brought to the financial services industry with its unique approach to credit life insurance. Credit life insurance is a policy linked to debt that settles the outstanding balance in the event of the policyholder's death, disability, or retrenchment. What sets Yalu apart from traditional credit life products is its innovative pricing model, customer rewards, and seamless administrative processes. Yalu's pricing model adjusts premiums based on the decreasing outstanding balance of the loan, offering a fairer approach compared to flat-fee structures used by other insurers. Additionally, Yalu stands out by returning 10% of premiums to customers who do not make a claim, a feature that is unmatched in the market. Moreover, Yalu simplifies the process of switching credit life policies by handling all administrative tasks for customers, eliminating the hassle of cancellation and paperwork. Sokhulu emphasized the significance of credit life insurance, a market often overshadowed by funeral insurance but essential for anyone with debt obligations. Despite the mandatory nature of credit life insurance, many consumers are unaware of their options and rights when choosing a provider. Yalu's 'Nothing to Hide' campaign aims to educate customers about the benefits of consolidating credit life policies and exercising their choice in selecting a provider that offers more favorable terms. When addressing the competitive landscape, Sokhulu acknowledged the challenges of entering a well-established market dominated by major players. However, Yalu's disruptive approach has garnered positive responses, with a surge in new customers following the 'Nothing to Hide' campaign. By empowering consumers to assert their rights and make informed decisions, Yalu has prompted a shift in behavior among incumbent insurers, leading to improved customer service and transparency. Despite being a newcomer in the insurance sector, Yalu has achieved remarkable growth, acquiring an impressive number of customers each month. Sokhulu expressed pride in his team's dedication and the company's accomplishments in challenging the status quo and creating a more customer-centric insurance experience. As Yalu continues to expand its presence and impact in the financial services industry, Sokhulu's vision for a more transparent, fair, and accessible credit life insurance market is reshaping the industry and empowering consumers to make informed choices.