Turaco, a prominent tech-driven affordable insurance company in Africa, has announced its acquisition of MicroEnsure Ghana, a pioneering microinsurance firm previously under MIC Global’s ownership.
As part of this agreement, MicroEnsure will undergo a rebranding process and operate as Turaco Ghana while retaining its existing team and leadership.
This strategic move aligns with Turaco’s mission to extend straightforward and accessible insurance coverage to one billion individuals.
With this expansion, Turaco will now operate in four key markets: Kenya, Uganda, Nigeria, and Ghana, and see a 25% growth in active policies.
Both new and existing customers will reap the benefits of enhanced technology-driven processes, resulting in quicker claims payouts and optimised service offerings.
Furthermore, this acquisition opens up avenues for Turaco to strengthen its partnerships with industry incumbents and establish a strategic reinsurance partnership with MIC Global, a leading player in micro-reinsurance on a global scale.
“This deal marks a significant milestone for our growth and expansion strategy for Africa and a strategic move to drive innovation into a market that has one of the continent’s highest insurance coverage rates.
“We are excited about the opportunity of building on the 15 year legacy of MicroEnsure and leveraging our customer-centric tech solution to provide affordable and accessible cover.
“Turaco Ghana is a fantastic team with lots of enthusiasm and most importantly, expertise for this next chapter, which we’re confident will make this transition period seamless for our partners and customers,” Ted Pantone, Co-founder & CEO of Turaco stated.
Ghana’s Coverage vs. Access as Turaco Enters
According to 2021 census data, Ghana boasts one of the highest insurance coverage rates in Africa, with over 60 percent of its population enrolled in either the National Health Insurance Scheme (NHIS) or a private health insurance plan.
However, despite this seemingly high coverage, millions of Ghanaians still lack adequate access to healthcare, and more than 10 percent of the population faces severe financial hardships due to annual health-related expenses.
Even for those fortunate enough to have insurance, the system remains challenging to navigate, characterised by intricate exclusions and lengthy delays in processing claims.
The General Manager of Turaco Ghana,Leona Abban, stated that, “As pioneers in microinsurance across Africa, our primary focus has always been to create a positive impact by offering affordable insurance solutions to low-income individuals.
“Over our 15-year history, our inclusive approach has provided a safety net to 3 million Ghanaians, ensuring they are covered.
“As we move into this next growth phase as Turaco Ghana, we look forward to leveraging our in-market experiences to improve our approach further and capture additional segments of the market that have historically been excluded.”
Empowering Low-Income Earners
Turaco Ghana, formerly known as MicroEnsure, holds the distinction of being Ghana’s pioneering microinsurance intermediary.
The company has been at the forefront of extending insurance coverage to low-income earners and achieved several significant milestones.
Notably, in 2012, it became the first to introduce mobile insurance through Tigo, followed by a similar initiative with Airtel in 2013, ultimately benefiting 3 million customers.
In 2020, Turaco Ghana continued its commitment to supporting the community by providing insurance protection to 4,000 Micro, Small, and Medium Enterprises in Ghana.
This endeavour involved offering comprehensive life and business protection in partnership with the United Nations Capital Development Fund.
Additionally, the company introduced a health protection plan in 2020, catering to the customers of Vodafone Ghana.
Harry Croydon, Co-Founder & COO of MIC Global, expressed his enthusiasm about the collaboration with Turaco as they assume control of MicroEnsure Ghana, now rebranded as Turaco Ghana.
“We are excited about the potential of our micro-insurance products combined with Turaco’s unique model, which we believe will continue to succeed in providing millions of customers with the insurance safety net they require,” Croydon stated.
Established in 2019, Turacoemploys technology to enhance accessibility to affordable insurance through a customer-centric approach.
Furthermore, it operates on a B2B2C business model, forging partnerships with technology-driven, mass-market enterprises such as telecommunications companies, banks, and fintech firms to facilitate easy distribution and insurance management.
Turaco seamlessly integrates its services as white-labelled offerings bundled with a partner’s core products or services, integrating with their existing payment processes to facilitate premium collection.
Leveraging its proprietary algorithms, Turaco ensures that claims are processed within a swift 3-day timeframe.
Through these active partnerships, Turaco has crafted and delivered a range of tailored insurance packages, encompassing medical, life, asset, and vehicle insurance, already extending coverage to over 1,300,000 individuals across Nigeria, Kenya, Uganda, and now Ghana.