The top insurtech business in Africa, Turaco, overcomes obstacles to become the first insurtech in Uganda to obtain an underwriting license.
In order to fulfill its global purpose of insuring 1 billion people, Turaco Microinsurance Company (“Turaco Microinsurance”) strives to be the top supplier of simple, low-cost microinsurance solutions for Ugandans who are underserved and unserved.
With coverage starting at under 1,000 Ugandan shillings per month, Turaco Microinsurance enters the insurance industry eager to build and distribute straightforward solutions that address the main dangers mass-market clients confront.
Turaco Microinsurance will provide terms and conditions that are straightforward enough to fit into three SMS messages thanks to its customer-centric strategy, enabling even first-time insurance clients to comprehend their policy and what is covered.
In its capacity as an underwriter, Turaco Microinsurance will facilitate sign-up by interfacing via API with the systems of its distribution partners. Customers will only need to press a single button to access insurance. Turaco Microinsurance will also expedite the processing and payment of claims, fostering consumer confidence in insurance and the insurance sector.
“Today is a big day for Turaco,” stated Hamza Mutebi, Turaco Microinsurance Company General Manager and Principal Officer, during the company’s official launch on Tuesday at the Golden Tulip Kampala. We are pleased to have obtained our license after starting out as an agency and progressing to become an underwriting organization. It is an important turning point.
Mr. Mutebi hinted that obtaining an underwriting license is a significant milestone for the Turaco family since it will enable them to create and distribute simple, affordable products.
Additionally, “We’re going to broaden our reach to even more underserved people and use our technology to quickly settle claims via straightforward channels like WhatsApp.”
Microinsurance intends to help a demographic group that frequently lacks understanding about insurance, according to Bernard Obel, Director Supervision of the Insurance Regulatory Authority (IRA), who called for the prioritization of innovation in the industry. As regulators, we must assist insurers in creating straightforward solutions that the underprivileged may easily comprehend.
Mr. Obel pointed out that Turaco has played a significant role in facilitating increased insurance access for the general public through distribution. They will collaborate with them and the entire insurance sector to develop products, specify governance, and establish service standards in their capacity as regulators.
The State Minister of Finance for Investment and Privatization Evelyn Anite, the honoree, welcomed Turaco to the game and praised their concept and approach for making insurance more approachable for those with low incomes as she presented the license to Turaco workers.
“We need to insure ourselves, and they have simplified the process and made it affordable and simple because we were brought up thinking that insurance was only for the wealthy, but I’m glad that Turaco has a product that costs as little as Shs500. And I want to commend you for choosing to go upcountry when most of your competitors are focused in the big city. And from there, you’ll receive funding for your programs, she said.
In the absence of National Health Insurance, she continued, Turaco has stepped in. She urged Ugandans to always have health insurance because free goods and services are no longer available in the medical field.
Health emergencies can be disastrous for base-of-the-pyramid households in Africa since they are frequently less financially resilient and therefore more susceptible to unforeseen medical expenses. Every year, out-of-pocket medical expenses force an astonishing 14 million low-income households into poverty because they lack the means to handle financial shocks.
Each year, more than 15% of the population in Uganda incurs catastrophic medical costs. Only 2% of those living in sub-Saharan Africa are currently covered by insurance, a crucial tool for reducing risk and boosting resilience. Less than 1% of Uganda’s population has health insurance.
Turaco Microinsurance aims to expand insurance coverage in Uganda by building on the success of Turaco’s embedded, technologically enhanced insurance distribution model. The business intends to combine the Turaco technology’s strengths—simple policy sign-up and quick claims processing via WhatsApp—with its capacity as an underwriter to provide cutting-edge and reasonably priced products.
What you need to understand about Turaco
The Ugandan underwriting branch of the Pan-African embedded insurtech Turaco Group, which provides straightforward and reasonably priced health and life insurance for the disadvantaged people, is known as Turaco Microinsurance Company.
Turaco was established in 2019 and operates in Kenya, Uganda, and Nigeria. Turaco collaborates with top mobile network operators (MNOS), tech-enabled businesses, and microfinance organizations to offer their clients straightforward and reasonably priced insurance products.
Individuals can obtain insurance through Turaco for monthly fees as low as $1. Turaco expedites the processing of claims so that consumers get their money when they need it most, in less than three business days.
Turaco has insured more than 1 million lives and enabled the settlement of more than 15,000 claims so far, with the goal of insuring 1 billion lives in Africa.
