August 14, 2020

Airtel Taps the Insurance Market


By Etaarifa Contributor

Telecommunications services provider, Airtel has today partnered with Pan Africa Life Assurance Limited and MicroEnsure to launch a free insurance product which will offer Airtel customers in Kenya life, accident and hospitalization insurance with increasing benefits based on their monthly airtime usage.

The product, which is tagged Airtel Insurance is packaged to deliver affordable insurance services and encourage insurance culture among Kenyans of 18 years of age and above.

The product covers all hospitalization for any medical reason with no exclusions, making it the most user friendly hospital insurance cover in Kenya. Its availability on the Airtel mobile platform makes it the most widely accessible free insurance cover in the country. The product benefits users whose hospitalization period is up to three or more nights at a hospital.

Airtel Insurance rewards loyal Airtel customers with a free, renewable monthly life, accident and hospitalization cover based on the amount of monthly airtime used. Airtel Customers will qualify for this insurance by using as low as Ksh. 250 airtime each month, with the opportunity to gain incremental insurance benefits with increased monthly airtime usage.

Airtel Insurance becomes active on the first day of the month following registration, and is based on the amount of airtime recharged the previous month, with a minimum monthly usage of Ksh. 250.

Customers also have a variety of packages to choose from. A monthly usage of Ksh. 250, Airtel insurance gives the customer Ksh. 1,000 hospitalization and Ksh. 10,000 life and accident insurance while Ksh. 500 usage will earn customers Ksh. 2,000 hospitalization and Ksh. 25,000 life and accident insurance. A Ksh. 1,000 usage will attract Ksh. 5,000 hospitalization and Ksh. 100, 000 life and accident insurance. Finally, a Ksh. 2,500 usage or above will attract Ksh. 10,000 hospitalization and Ksh. 250,000 life and accident insurance.

Speaking to the media at the launch event this morning, Airtel Kenya CEO Adil El Youssefi said that Airtel Insurance is designed to make affordable insurance available to majority of Kenyans especially the middle and low income earners who may not already have insurance policies.

“We are delighted to collaborate with Pan Africa Life and MicroEnsure – two very reputable insurance providers to package this innovative product which guarantees our customers quality, affordable and accessible insurance services. This service would help make insurance available and accessible to a vast portion of the uninsured population in Kenyan,” said Adil.

Mr Mugo Kibati, the group CEO of Pan Africa Insurance Holdings said, “this partnership is not new, yet it goes beyond borders. Our business associates Sanlam, which is a global financial services provider and the second largest in Africa, has established partnerships with both Airtel and MicroEnsure in offering financial solutions. We are happy that our local relationship has borne yet another 1st in digital insurance, a product that will revolutionize the way insurance is distributed through digital marketing, by utilizing minimal data that is critical for insurance companies.”

Stephen Kamanda who heads Pan Africa Life Assurance added that the design of the product was heavily advised by the firm’s desire to continuously play a part in increasing penetration of insurance, which stands at a low of just above 3%, in the Kenyan population. “Statistics show that over 70% of our adult population own a mobile phone. The eminent gap, together with the need to provide life insurance which is a fundamental financial need to a fast growing economy like ours is what motivated us to bring this solution to market. Pan Africa Life is at the forefront of innovation in life assurance in this market. The product we launch today offers several levels for a bouquet of accident, medical and last expense covers with corresponding airtime recharge rates to suit the pockets of our diverse clientele, making it affordable by all.’’ he closed.

Richard Leftley, CEO of MicroEnsure, was equally enthusiastic, saying, “Free life, accident and hospitalization cover is now accessible to everyone in Kenya with an Airtel line. As we’ve seen in our eight other product collaborations with Airtel across Africa, we expect this product, underwritten by Pan Africa Life, to fundamentally change insurance penetration in Kenya in the months and years.”

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