The success of MPESA made many think that anything mobile can succeed in Kenya, but this hasn’t been the case for insurance providers. Many attempts by Airtel and even Safaricom to provide insurance services to their subscribers have failed. Despite these failures, Airtel has once again partnered with Britam and Inclusivity to provide a mobile centric insurance.
The strategic collaboration aims to transform the insurance landscape, making it affordable and accessible to all. The new suite of insurance options will be accessed by dialing *334# on Airtel network to explore and purchase either Hospital Cash, Last expense (Funeral) and Personal Accident covers or a combination of the three.
The Hospital Cash (Hospicash) cover provides policyholders with a daily cash payment of Kshs 500 for every night spent in hospital from the 3rd day up to a maximum of 30 days per year. This coverage protects against loss of income and medical expenses. The benefit is available for a monthly premium of KES 40 per month for individuals or KES 170 per month for a family of up to 4 members.
The Last Expense cover is designed to alleviate the financial burden associated with funeral costs in the event of the unfortunate demise of the customer. This solution offers a lumpsum payout of Kshs 100,000, providing support for beneficiaries to cover income loss, outstanding bills, and burial expenses. The benefit is available for a monthly premium of KES 40 per month for individuals or KES 170 per month for a family of up to 4 members.
The Personal Accident cover, on the other hand, safeguards customers in the event of Permanent Disability or Death resulting from an accident. This benefit provides a pre-determined payout of Kshs 100,000 to the customer or their next of kin, ensuring financial security during challenging times. The benefit is available for a monthly premium of KES 35 per month for individuals or KES 150 per month for a family of up to 4 members.
The feasibility of this partnership depends on:
- The market potential and demand for mobile insurance in Kenya. According to a report by GSMA1, Kenya has a high mobile penetration rate of 91%, but a low insurance penetration rate of 2.8%. This suggests that there is a large untapped market for mobile insurance in Kenya. However, the demand for mobile insurance may also depend on the customersā risk perception, financial literacy, and cultural preferences.
- The value proposition and differentiation of the products. The partnership claims to offer affordable, market-relevant, and easy access to comprehensive coverage for Airtel Money customers. However, it also faces competition from other mobile insurance providers such as Safaricomās M-TIBA, which offer similar products. Therefore, the partnership needs to demonstrate how its products are superior or different from the existing ones in terms of price, quality, convenience, or customer service.
- The customer experience and satisfaction. The partnership needs to ensure that the customers have a positive and seamless experience when using the mobile insurance products. This includes providing clear and transparent information about the productsā features, benefits, terms, and conditions; ensuring fast and reliable payment and claim processes; offering effective customer support and feedback mechanisms; and building trust and loyalty among the customers.
- The operational efficiency and sustainability of the partnership. The partnership needs to manage the operational complexity and risks involved in delivering mobile insurance products. This includes ensuring compliance with the relevant regulatory frameworks; integrating the systems and processes of the different partners; maintaining data security and privacy; monitoring and evaluating the performance and impact of the products; and resolving any disputes or complaints that may arise.
The partnership between Airtel Money Kenya, Britam, and Inclusivity Solutions has the potential to revolutionize the insurance landscape in Kenya by providing inclusive insurance solutions to millions of customers who have been excluded from such services. However, the partnership also faces some challenges that need to be overcome in order to achieve its objectives. Therefore, the success of this partnership will depend on how well it can address these challenges and deliver value to its customers.
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