M-KOPA and Turaco have jointly insured 1 million Kenyans with embedded Hospital Cash coverage through smartphones, enhancing financial security. This initiative helps alleviate the burden of medical expenses for families, with significant improvements in financial confidence reported among customers. Future plans include expansion to Ghana and a continued focus on innovative financial solutions for underserved communities.
M-KOPA and Turaco Insurance Agency have collectively insured over 1 million Kenyans with embedded Hospital Cash coverage over the past year. This insurance is integrated into M-KOPA’s smartphones, provided at no extra charge, as part of the “More Than a Phone” initiative. This effort aims to assist ‘Every Day Earners’ in Kenya in achieving greater financial security amid prevalent health-related financial challenges.
Medical emergencies present severe financial obstacles for numerous Kenyan families, with over 5% experiencing catastrophic health costs annually. Furthermore, across Africa, 14 million low-income households find themselves in poverty due to out-of-pocket healthcare expenses. Although governmental programs provide some coverage, private insurance can help alleviate additional health-related financial burdens.
Following successful trials, the embedded Hospital Cash coverage was launched with the M-KOPA X-20 smartphone in June 2024. This benefit ensures that every M-KOPA device includes 12 months of insurance coverage. Participants are entitled to Ksh 1,000 per day when hospitalized overnight in any Ministry of Health registered facility, offering peace of mind during health crises while allowing customers to stay focused on financial objectives.
Martin Kingori, General Manager of M-KOPA Kenya, emphasized that this insurance initiative underscores their commitment to enabling their customers to overcome unexpected medical expenses, thereby enhancing their financial stability. The insurance serves as a vital component in financing progress for low-income groups and showcases the advantages of partnerships with organizations committed to social impact.
An impact report published by Turaco and M-KOPA highlights important findings regarding the benefits for the 1 million insured individuals:
– Approximately 75% of these customers did not possess health insurance prior to engaging with M-KOPA’s services.
– Over half of the respondents indicated that the insurance coverage influenced their ability to increase business investments, providing a crucial financial safety net.
– More than 50% of female customers noted a reduction in financial anxiety linked to the security provided by their health coverage.
– Over 75% of customers who lodged claims reported that the insurance alleviated their daily financial obligations.
Ted Pantone, CEO of Turaco, stated their ongoing mission to enhance insurance accessibility and affordability. Their collaboration with M-KOPA exemplifies how integrating insurance into everyday products can significantly impact financial resilience for many individuals.
As this initiative continues to thrive, M-KOPA and Turaco plan to extend their insurance solutions to additional markets, starting with Ghana, while emphasizing innovative financial services aimed at underprivileged communities throughout Africa.
In conclusion, the partnership between M-KOPA and Turaco has successfully insured 1 million Kenyans through integrated health coverage, illustrating the importance of accessible insurance solutions. The initiative addresses critical financial burdens posed by health emergencies, ultimately contributing to the financial resilience of low-income households. As both companies look to expand their services, their mission remains focused on improving affordability and access to necessary insurance in underserved markets across Africa.
Original Source: techafricanews.com
