Africa’s Insurance technology Turaco, has secured an underwriting license in Uganda to expand access to affordable and simple insurance for the mass market in Africa.
Despite insuring over 1 million lives already, 17.4 million Ugandan adults remain uninsured. The company has launched Turaco Microinsurance Company, an underwriting arm in Uganda which is aimed at closing the insurance gap for underserved communities across the country.
Hamza Mutebi, the General Manager and Principal Officer of Turaco Microinsurance Company, commented “Today marks a monumental achievement for Turaco. From our humble beginnings as an agency to now an underwriting entity, we are proud of acquiring our license. It is a major milestone.”
Turaco Microinsurance which has a mission of insuring one billion lives in Africa, will develop and distribute uncomplicated insurance products tailored to the specific risks faced by mass-market customers. Its policies will start from low UGX1,000 per month.
Through its customer-centric approach, Turaco Microinsurance will offer terms and conditions that are simple to fit 3 SMS messages, to enable first-time insurance customers to understand their policy and what is covered.
As an underwriter, the Microinsurance aims to simplify the sign up process by integrating with distribution partners’ systems via API allowing customers to access insurance through a simple touch of a button.
The company will also process and facilitate the payment of claims in just hours, boosting customer trust in the insurance and the insurance industry.
Turaco Microinsurance will be responsible for underwriting within the Turaco Group, an all-encompassing Pan-African embedded insurtech platform which is dedicated to fostering financial resilience in emerging markets through affordable and straightforward health and life insurance options designed for underserved populations.
By partnering with leading mobile network operators, technology-enabled companies, and microfinance institutions, Turaco has been able to distribute accessible insurance products to its customer base.
Notably, individuals can secure insurance coverage with premiums starting as low as USD1 per month. The company’s claims processing time, clocking in at less than three business days, ensures that policyholders receive their rightful compensation promptly.
Since its establishment in 2019, Turaco has already made its presence felt in Kenya, Uganda, and Nigeria and successfully insured over a million lives and facilitated the settlement of more than 15,000 claims.
According to Mr Mutebi acquiring an underwriting license is a huge mail stone for the Turaco family because it will allow them to both design and distribute affordable products that are simple and accessible.
“We are also going to expand our reach to even more underserved people and leverage our technology to quickly pay claims using simple channels such as WhatsApp.”
On the other hand, Bernard Obel, Insurance Regulatory Authority (IRA) Director Supervision urged for the prioritisation of innovation in microinsurance,
“Microinsurance aims to benefit a population group that often lacks knowledge about insurance. As regulators, we must facilitate insurers in developing simple products that the poor can easily understand.”he said.
He acknowledged Turaco’s pivotal role in expanding insurance accessibility to the mass market through strategic distribution . He expressed the regulatory body’s commitment to collaborating with Turaco and the insurance industry at large to develop products, define governance, and establish service standards.
In Uganda, more than 15% of the population faces catastrophic health expenses each year. Unfortunately, insurance adoption remains low, with a mere 2% of individuals in sub-Saharan Africa being insured, and less than 1% of Ugandans holding insurance coverage
Turaco Microinsurance aims to leverage its triumphant technology-driven insurance distribution model to bolster insurance penetration in Uganda.
The company plans to blend Turaco’s user-friendly policy sign-up process and expedited claims processing via WhatsApp with its newfound underwriting capacity, enabling the creation of innovative and affordable insurance products.