PS Mang'eni urges Kenyans to embrace insurance during launch of Turaco

Ministry of Cooperative and MSMEs Principal Secretary Susan Mang'eni at the launch of Tupaco. [Winfrey Owino, Standard] The Ministry of Cooperative and MSMEs Principal Secretary Susan Mang'eni has urged Kenyans to gain access to insurance products to better protect their livelihoods,invest in their futures, and contribute to the stability of their communities. This aligns with President Ruto's Bottom-Up Economic Agenda for fostering an inclusive economy that empowers all Kenyans, regardless of their financial status. Speaking during the launch of Turaco Microinsurance on Tuesday, November 5, 2024, Mang'eni noted that her Ministry is focused on formulating comprehensiveinvestment and private sector development policies focused on citizens who are underserved and unserved by the traditional financial services industry. "Today's launch of Turaco Microinsurance signifies a significant moment in the pursuit of this vision. Turaco has tailored precisely unique needs of mass market households, and holds the promise of transforming the lives of its customers by enhancing their financial resilience," she said. "Having heard Mr. Ted Pantone explain Turaco's remarkable journey, transitioning from being an agency to obtaining the distinction of being the first insurtech in Kenya toacquire an underwriting license, highlight the conducive environment for business andinnovation in Kenya," she added. The PS added that Turaco's approach aligns perfectly with the Ministry's aspirations of fostering innovation within the private sector, a trait that is integral to shaping a progressive economy. "This achievement underscores Turaco's commitment to crafting affordable, accessible, and uncomplicated microinsurance products," she noted. At the same time, she explained that the World Bank report indicates that the MSME sector in Kenya faces a financing deficit of over Ksh 2.6 trillion and the financing from the mainstream market towards the sector has been on the decline in recent times owing to high-risk characteristics of the sector. "In conversations with the Turaco team, I learned of the seven small-scale traders who had taken loans from Musoni Microfinance to invest in their business in the Toi market. Afterthe devastating fires ripped through their stalls destroying their stock, instead of being faced with mounting loan repayments, the insurance that came as part of the Musoniloans repaid the loans on behalf of the customers," she explained. "Microinsurance products - like those Turaco will underwrite - are affordable enough - just a few shillings a month - to layer on to loans and savings accounts, so not only does it not burden the customer, it increases their financial resiliency. Ultimately it is a win-win; by ensuring customers can repay loans or continue to save even if the face of financial shocks drives inclusive growth for households and business growth for financial institutions," she added. At the same time, Turaco CEO Ted Pantone explained that Turaco's vision is to insure one billion people in the world, doubling the number of insured individuals globally and freeing them from the fear of financial shocks. "We must address the key issues that mass-market consumers face. Our products are designed to be accessible, starting at just 100 shillings a month, ensuring that everyone can afford to protect their future," said the Turaco CEO. Pantone said that, as a Company, they are committed to doing things differently, by leveraging Technology in reducing the cost of servicing insurance and making it more affordable and accessible to all. "To disrupt the insurance industry, we must deeply understand our products and risk management. This expertise allows us to know when things can be done differently and better," he added. Meanwhile, Communication Authority of Kenya Director General David Mugonyi noted that he was excited by the launch of Turaco Microinsurance because not only does it offer innovative and affordable insurance, but it also has the technology to enable a seamless customer journey. "I am told with Turaco's API connections, they can integrate with telcos and other tech platforms to ensure instant policy activation so as soon as a customer opts into a product on USSD, a policy is activated and onboarding communications are triggered," Mugonyi noted in a statement. "Their artificial intelligence technology also enables claims to be paid within seconds of submitting documents. These types of technological advancements applied to financial inclusion are critical to expanding access to insurance through channels such as telcos," he added. Mugonyi also explained that to realize a vision where all Kenyans have access to appropriate insurance, collaboration is essential.

PS Mang'eni urges Kenyans to embrace insurance during launch of Turaco

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PS Mang'eni urges Kenyans to embrace insurance during launch of Turaco

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