Turaco and M-Kopa’s tech-Insurance cover targeting everyday earners not able to access alternative products offered by big players in the private health insurance industry has gained one million customers in a year.
- •Customers who purchase an M-KOPA branded smartphone automatically receive a 12-months of free inpatient health cover that pays out Ksh1,000 per day for each night they spend admitted in a public or private hospital registered by the Ministry of Health.
- •The milestone could be a wake up call in Kenya’s struggling insurance industry with penetration coming in at 2.4% as at FY’2023 according to the Q4 Insurance Regulatory Authority and the Kenya National Bureau of Statistics 2024 Economic Survey.
- •The low penetration rate, which is below the global average of 6.8%, according to Swiss Re Institute, is attributable to the fact that insurance uptake is still seen as a luxury and mostly taken when it is necessary or a regulatory requirement.
According to Martin Kingori, M-Kopa’s General Manager, integrating insurance into M-KOPA’s smartphones was motivated by a mission of delivering more than just a phone.
“We understand that traditional insurance models often fail to serve our customers – with high premiums, complex processes, and delayed payouts,” says Martin.
“By making insurance both accessible and affordable, we’re helping our customers build resilience against financial setbacks, keeping their progress on track,” he added.
In an interview, Turaco Chief Executive Officer and Co-founder Ted Pantone notes that without the insurance, 60% of daily earners would have to use savings or sell an asset if hospitalized and another 25% would have to borrow money to cater for their treatment expenses.
“This milestone is further evidence of the transformative impact that strategic partnerships can achieve,” Pantone said.
