Kacha, Lucy Insurance, and Global Bank have introduced Agar, a digital platform offering integrated credit and insurance services in Ethiopia. Agar provides third-party motor insurance and facilitates loans for taxi drivers and salaried employees, aiming to improve access to financial services in a country with low insurance penetration. The initiative emphasizes the importance of cybersecurity and customer data protection.
In a groundbreaking collaboration, Kacha, Lucy Insurance, and Global Bank have launched Agar, an integrated digital credit and insurance service in Ethiopia. This initiative, announced at Skylight Hotel, aims to enhance customer access to insurance without paperwork. Agar provides not only insurance options but also a digital credit service aimed at taxi-hailing drivers and offers a salary advance microloan feature via Kacha’s mobile app.
Agar incorporates a third-party motor insurance policy tailored to Ethiopia’s growing number of vehicles, which currently exceeds 1.4 million. This insurance service is crucial as third-party coverage is mandated by law. With recent changes to premium rates, Agar’s offerings begin at 5,000 birr, and the service can be activated through an efficient online portal.
To utilize the insurance service, customers must submit their vehicle information digitally. The platform’s loan offerings target two primary groups: taxi operators in need of immediate financial assistance and salaried employees requiring a salary advance. Additionally, it provides loans to assist with premium payments, with flexible repayment options ranging from one to nine months.
Despite having one of the lowest global insurance penetration rates, technological advancements have opened new avenues for financial services. Recent partnerships, like those between Little Ethiopia and Lion Insurance, have further illustrated the potential for tailored insurance offerings in the market. The Kacha Wallet facilitates loans of up to 50,000 birr, determined by an automated credit scoring mechanism.
Furthermore, adherence to cybersecurity measures and customer privacy is paramount according to Martha Hailemariam, advisor to the Vice Governor of the National Bank of Ethiopia. She recognized the responsibility that this financial trio holds in maintaining secure customer data as they forge ahead with their new services.
In summary, the collaboration between Kacha, Lucy Insurance, and Global Bank through the launch of Agar represents a significant advancement in the Ethiopian financial landscape. As the demand for accessible insurance and credit services increases, their integration into a single digital platform reflects the country’s growing technological capabilities. Continued oversight from the National Bank of Ethiopia will be crucial in ensuring the effectiveness and security of these services.
Original Source: shega.co
