M-KOPA and Turaco have jointly insured 1 million Kenyans with embedded Hospital Cash insurance in just one year. This initiative aims to provide financial security for households facing medical emergencies and includes seamless coverage via M-KOPA smartphones. The partnership positively impacts financial confidence, enhances access to insurance, and is set to expand to additional markets, beginning with Ghana.
M-KOPA, a leading fintech firm in emerging markets, and Turaco Insurance Agency have achieved a significant milestone by insuring 1 million Kenyans with embedded Hospital Cash coverage within one year. This health insurance, integrated at no additional cost into M-KOPA smartphones, forms part of their digital financial services, “More Than a Phone,” aimed at providing financial security for everyday earners in Kenya.
Medical emergencies impose severe financial strains on many Kenyan families, with over 5% facing catastrophic healthcare expenses annually. While government initiatives such as the National Hospital Insurance Fund provide essential coverage, private insurance can complement these efforts by safeguarding families against additional healthcare costs.
Following successful trials in January 2024, the Hospital Cash coverage was launched in June 2024 alongside the M-KOPA X-20 smartphone. Each M-KOPA smartphone now includes 12 months of coverage, allowing customers to receive Ksh 1,000 daily when admitted to any registered hospital. This initiative provides customers with peace of mind during medical emergencies, enabling them to focus on their financial objectives.
General Manager of M-KOPA Kenya, Martin Kingori, emphasized the importance of this partnership with Turaco in strengthening their service offerings. He noted that unexpected medical expenses can disrupt financial progress for customers, and having insurance establishes a crucial safety net aligned with M-KOPA’s mission to support everyday earners.
Beneficiaries of the program, such as customer Boniface Mutiso, have experienced the positive effects of the insurance. He mentioned, “Insurance was the biggest reason why I picked my phone… I received Ksh 7,000 two days after my claim, straight to my mobile money. This cover helped me cater for my family needs after I was discharged.”
A recent report from Turaco and M-KOPA highlights the program’s impact, revealing:
• Approximately 75% of customers did not have health insurance prior to M-KOPA’s offering.
• Over half of the insured customers reported increased business investments due to the financial safety net.
• More than 50% of female customers experienced reduced financial anxiety.
• Over 75% of claimants stated that the insurance alleviated their daily financial burdens.
Turaco’s CEO, Ted Pantone, stated that their mission is to enhance the accessibility and affordability of insurance, aiming to insure the next billion individuals globally. He applauded the M-KOPA partnership, which exemplifies how embedding insurance in daily consumer products can promote financial resilience among Kenyans.
Looking forward, M-KOPA and Turaco plan to extend their innovative offerings to additional markets, beginning with Ghana, while continuing to address the financial needs of underserved communities across Africa.
The collaboration between M-KOPA and Turaco has successfully brought embedded Hospital Cash coverage to 1 million Kenyans, highlighting the importance of accessible and affordable insurance. By integrating insurance into smartphones, they offer a financial safety net, especially beneficial for low-income households. The significant positive impact reported by customers reinforces the need for innovative solutions that enhance financial resilience in underserved populations. Looking ahead, their plans to expand this model to other regions could further transform lives across Africa.
Original Source: techafricanews.com
