About 700,000 boda boda operators are set to use a mobile-based insurance application platform that simplifies the purchase and payment of last-expense premiums.
The mobile-based platform WazInsure by GrassRoots Bima, a local start-up which has partnered with Capex Life Assurance, will offer Maisha Enhanced Cover, a funeral cover targeting low-income families.
The cover costs a minimum Sh600 to Sh2,500 annually and attracts minimum Sh25,000 in case of death in the family.
Boda boda Safety Association of Kenya secretary general Richard Odhiambo yesterday said members will be among the first beneficiaries of the product since it has simplified the distribution, purchase and administration of the insurance cover.
Speaking during the launch in Nairobi, he said this will aid in driving insurance reach to many who are yet to buy because of a rigid underwriting regime.
“Insurance is perceived to be designed only for the high and middle class in Kenya, we want to ensure that our members have the right training on road safety and the right insurance cover,” said Mr Odhiambo.
According to the association, only 10 per cent of the riders have comprehensive insurance cover, 40 per cent third party insurance cover and about 20 per cent personal accident insurance cover.
About 75 per cent of boda boda riders have not been to riding schools and therefore do not have licences.
Capex Life Assurance chief executive Peter Ogunniran said the emergence of insurance technology (InsurTech) firms has opened interaction between the consumers and underwriters.
“Through their more active and sophisticated use of data, they can help us underwrite products that are better tailored to an individual’s circumstances,” said Mr Ogunniran.