The Riziki Cover is the product of a partnership between Equitel, Equity Insurance Agency, Britam, and technical service provider Inclusivity Solutions.
It is being offered to Equitel subscribers who use airtime of at least Sh100 a month, or make mobile banking transactions worth Sh1,000 or more a month.
Equity Bank #ticker:EQTY through its subsidiary Finserve Africa Limited that runs mobile banking platform Equitel, last week announced a mobile-based ‘loss-of-earnings’ insurance product for its subscribers, called Riziki Cover, in a non-cash incentive that research has found achieves a 13 per cent higher purchase intention than cash offers.
The Riziki Cover is the product of a partnership between Equitel, Equity Insurance Agency, Britam #ticker:BRIT, and technical service provider Inclusivity Solutions. It is being offered to Equitel subscribers who use airtime of at least Sh100 a month, or make mobile banking transactions worth Sh1,000 or more a month.
Currently, Equitel has 1.8 million subscribers, according to the Communications Authority of Kenya, but it is targeting extra market share in the lower end market with the new insurance-incentive marketing strategy.
The cash payout from the insurance, for subscribers who lose earnings while hospitalised, will be Sh400 per night for any qualifying subscriber.
But it will double to Sh800 a night for any subscriber who uses airtime of at least Sh100 and makes mobile banking transactions worth Sh1000 or more a month, so the doubling comes on doing both.
The payout is only eligible for that month and is not transferable.
“We are proud to introduce this unique service to all our Equitel users who can now secure their daily earnings through Riziki Cover. It is easy and convenient to sign up and offers benefits that are accessible instantly. Our subscribers will now have peace of mind as they focus on getting back to full health in the event of sickness or injury,” said Jack Ngare, the managing director of Finserve Africa.
Subscribers can activate the cover by dialling *745# and after registering they are eligible to receive a fixed payout in case of hospital admission for a period of three consecutive nights or more because of an illness, injury or a condition. It is claimable in any hospital, public or private, with inpatient facilities licensed by the Ministry of Health.
With this move, Equity Bank and Britam are offering consumers incentives and will hold people’s interest, motivating them to buy the product or even try it out.
“Insurance is a strategic incentive to acquire new customers as it is a product that low-end consumers avoid purchasing as it is considered expensive due to the monthly premiums. However, in offering it in a product that we use daily, consumers will be attracted to it. Additionally, it will feel more of a reward than cash, which can be spent at one-go,” said Stella Kimani, a brand strategist.
Indeed, according to research conducted by digital rewards platform, Ifeelgoods on the impact on brand equity and purchase intention of non-cash incentives, consumers express greater value towards more relevant non-cash rewards because they are personalised and are more instantly available.
“Non-cash incentives outperform cash discount based promotions by over 21 per cent for positive brand image creation. More specifically, non-cash incentives exceed those of cash-based promotions by over 42 per cent for brand differentiation, they also outperform cash incentives by over 13 per cent for purchase intention,” reported Ifeelgoods Inc.
- African Laughter
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
