Telecommunications operator Airtel Nigeria has partnered with MicroEnsure and Cornerstone Insurance, two of Nigeria’s leading insurance firms, to launch a free insurance product that provides its mobile subscribers with hospital and life insurance.
Dubbed Airtel Insurance, the world’s latest insurance product will deliver reasonably priced insurance services based on monthly airtime recharge.
The product, which has already been endorsed by the National Insurance Commission (NAICOM), becomes an archetype globally. The insurance covers all forms of hospitalisation, whether from accidental or natural causes. According WorldStageGroup, a Nigerian blog, the new service is expected to become the most widely accessible and free insurance cover in the country.
Airtel said customers can qualify for the insurance by recharging as little as N1,000 (approx $6) with Airtel each month. As they increase their monthly recharge, they earn more insurance cover – with up to N500,000 (approx $3075) and N50,000 (approx $308) of life insurance and hospitalisation cover per month.
In a statement, Airtel said the insurance becomes active on the first day of each month after registration, adding that it is based on the amount of airtime recharged the previous month, with a minimum monthly recharge of N 1,000.
Airtel Nigeria’s chief commercial officer Maurice Newa explained that majority of Nigerians, particularly, the middle- and low-income earners cannot afford most available insurance policies due to income levels and complicated insurance processes.
In his view, the Airtel Insurance plan is designed to make affordable insurance available to everyone in a simple manner.
“In line with our vision to enrich the lives of Nigerians and offer them quality services, Airtel Nigeria collaborated with two very reputable insurance organisations to package this innovative product which guarantees our customers quality, affordable and accessible insurance services. This further corroborates Airtel’s commitment towards creating a robust platform that helps customers accomplish their professional and personal success and goals in life,” Newa said.
The statement was echoed by Peter Gross, Regional Director for MicroEnsure Africa. He added that MicroEnsure is proud to be pioneering a mobile insurance provider, and the launch in Nigeria marks a milestone in free mobile insurance offerings.
Gross stated: “This combination of insurance products, all offered for free, is unprecedented in the industry here, and we take pride in introducing a cutting edge micro-insurance product here in Nigeria.”
Mr. Ganiyu Musa, Group MD of Cornerstone Insurance PLC, said, “Cornerstone is delighted to be at the forefront of providing truly innovative products and channels combinations that address the Nigerian situation. That we are grossly under-insured as a nation is very well documented; we are glad to be able to provide a platform for millions of financially excluded Nigerians to enjoy the benefits and peace of mind of insurance – for free. As we say at Cornerstone, “The Future” is, indeed, “Assured.”
Airtel Insurance is open to Nigerians aged between 18 and 65 years. To register, users should dial *259#.