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Britam, Telkom Partner To Launch Mobile-Based Insurance
Britam Holdings Plc and technology company Telkom Kenya have partnered to launch a mobile-based insurance solution that will see customers benefit from a customised mobile and insurance bundle that includes mobile data, voice minutes, SMS, personal accident and last-expense insurance.
The solution, the LifeBilaNoma bundle, offers two options, Life 200 and Life 300. Life 200 at a monthly cost of only $1.76 will provide monthly insurance personal accident cover for up to $175.79 and a monthly last expense of $175.79 as well as 1GB mobile data, 25 any-net minutes, 100 on-net minutes, 25 SMS to any network.
Life 300 at a monthly cost of only $2.64 will also provide monthly insurance personal accident cover for up to $175.79 and a monthly last expense of $175.79 as well as 1GB mobile data, 50 any-net minutes, 100 on-net minutes, 50 SMS to any network.
The Life Bila Noma bundle can be purchased via USSD *444#, using a Telkom mobile line.
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Britam’s Partnerships and Digital Director, Evah Kimani said the product targets small traders who have challenges accessing insurance.
“At Britam we recognized that Micro Small and Medium Enterprises (mSMEs) such as boda boda and small scale traders have traditionally had a challenge when it comes to accessing insurance products. That is why we partnered with Telkom to develop this solution. With Life Bila Noma, customers will get their medical expenses covered in case of an accident and in an unfortunate loss of life, Britam will provide a funeral cover. As part of our strategy towards building a customer-centric organization that offers affordable and accessible everyday financial solutions, we are focusing on strategic partnerships that give us access to the underserved markets” she said
Eric Achola, Director of Marketing at Telkom said: “At Telkom, we believe that access to mobile data is a fundamental human right and we remain dedicated to providing Kenyans with the much-needed innovative solutions to access this resource. Apart from looking for the next great competitive offer that will provide our consumers with more value for their communication and data demands, we are also aware of the crucial role that mobile innovation plays in increasing insurance penetration levels amongst key contributors to the economy such as the mama mboga and boda boda riders. Our collaboration with Britam is therefore strategic to addressing this issue.”
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According to 2020 Financial Stability Report by the Central Bank of Kenya (CBK), insurance penetration in Kenya is at 2.4% while the global average is at 7.2%. The low penetration rate is attributed to the perception that insurance is a luxury or for rich people. Efforts by insurance companies to introduce products targeting the low-income segment have been largely unsuccessful.