M-KOPA and Turaco have jointly insured over 1 million Kenyans with embedded Hospital Cash coverage via smartphones. This initiative addresses significant health expenses, fostering financial security for low-income households. The program also reports increased business investment and reduced financial anxiety among customers.
M-KOPA Kenya and Turaco Insurance Agency have celebrated a significant achievement, insuring over 1 million Kenyans with embedded Hospital Cash coverage within a year. This insurance is integrated into M-KOPA smartphones at no added cost, forming part of their digital financial services, “More Than a Phone,” aimed at enhancing financial security for everyday earners across the nation.
Medical emergencies impose substantial financial burdens on many families in Kenya. Annually, more than 5 percent of households face catastrophic health costs, contributing to poverty across 14 million low-income households on the continent due to out-of-pocket expenses. In addition to government initiatives such as the Social Health Insurance (SHA), private insurance plays a vital role in shielding families from unforeseen health-related expenditures.
Following successful trials in January 2024, the Hospital Cash coverage was launched alongside the M-KOPA X-20 smartphone in June 2024. Now, each M-KOPA smartphone comes with a full year of coverage, activated through M-KOPA and Turaco’s interconnected systems. Policyholders receive Ksh 1,000 daily during hospital admissions in registered Ministry of Health facilities, promoting peace of mind amid medical crises and allowing users to focus on their financial aspirations.
Martin Kingori, the General Manager of M-KOPA Kenya, expressed, “Our ‘More Than a Phone’ service has been enriched through our collaboration with Turaco. By understanding customer needs regarding unexpected medical expenses, we provide essential insurance coverage, supporting their financial journey. This benefit aligns with our commitment to empower ‘Every Day Earners’ and positively impact numerous lives throughout Kenya.”
Customer testimonials highlight the transformative effects of this insurance. For instance, Boniface Mutiso stated, “Insurance was the biggest reason why I picked my phone… I received Ksh 7,000 two days after my claim. This cover helped me cater to my family needs post-discharge.”
A new report from Turaco and M-KOPA demonstrates the program’s positive effects:
• Approximately 75% of customers previously lacked health insurance before joining M-KOPA.
• Over half of customers, including those not claiming, expanded their business investments due to the assurance provided by the insurance.
• More than 50% of female clients reported decreased financial anxiety owing to insurance coverage.
• Over 75% of those who claimed found that the insurance facilitated their daily financial obligations.
Ted Pantone, CEO of Turaco, stated, “We aim to make insurance accessible and affordable, aspiring to insure the next billion individuals globally. Our partnership with M-KOPA is a prime example of how collaborations can enrich lives and enhance insurance availability. This accomplishment illustrates how embedding insurance within everyday products can strengthen financial resilience for Kenyans.”
Looking ahead, Turaco and M-KOPA plan to extend their services into other markets, starting with Ghana, while remaining dedicated to providing innovative financial solutions to underserved communities throughout Africa.
In essence, M-KOPA and Turaco’s partnership has successfully insured over 1 million Kenyans, integrating health coverage into smartphones to enhance financial security. With this initiative, they address significant healthcare expenses that affect many families. The partnership not only fosters financial resilience but also signals a commitment to expanding insurance access throughout Africa. Future expansions into markets like Ghana illustrate ongoing dedication to innovative solutions for underserved communities.
Original Source: techafricanews.com
