Kenyan Insurtech Acquires MicroEnsure to Expand into Ghana Market
Kenyan insurtech company Turaco is making strategic strides to extend its African presence. Recently, Turaco announced its acquisition of MicroEnsure Ghana, which marks its entry into the West African market. Established in 2019, Turaco has rapidly gained recognition for its innovative use of technology to provide affordable insurance solutions. This article will delve into the details of this acquisition and Turaco’s mission to transform the insurance landscape in Africa.
Turaco’s Innovative Approach
Turaco has garnered acclaim for its distinctive insurance approach employing a B2B2C business model, forming partnerships with tech-enabled mass-market entities such as telecommunications companies, banks, microfinance entities and fintech firms namely Tugende, SafeBoda, VisionFund, One Acre Fund. This collaborative approach allows Turaco to capitalize on its partners’ existing user base, significantly reducing the cost of customer acquisition. Ted Pantone, co-founder of Turaco, notes, “It works well because it’s a nice new revenue stream for all the partners we work with without them having to do much work. And it’s a very effective model for us because it enables us to achieve scale quickly.” This approach streamlines the distribution and management of insurance policies, resulting in increased accessibility, as evidenced by Turaco’s impressive above 50% conversion rate among eligible customers and a nearly 0% policy cancellation rate.
Turaco’s Previous Success
In 2022, Turaco secured a substantial $10 million Series A funding round, with AfricInvest’s Cathay Africinvest Innovation Fund (CAIF) and Novastar Ventures taking the lead. This funding injection has bolstered Turaco’s operations across Kenya, Uganda, and its newly ventured market, Nigeria. Additionally, the company partnered with Airtel Money and Prudential in Uganda to introduce Hospital Sente, a low-cost hospital cash insurance product with funeral benefits, to expand insurance access to underserved communities and low-income individuals and families. Acquiring MicroEnsure Ghana is a crucial step in Turaco’s long-term vision to make simple and accessible insurance available to one billion people across the continent.
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The MicroEnsure Acquisition and the Future of Turaco Ghana
Turaco’s expansion into Ghana was facilitated by the acquisition of MicroEnsure from MIC Global. MicroEnsure has a remarkable history as a microinsurance pioneer in Ghana, providing insurance solutions to low-income earners. In 2012, MicroEnsure made history by launching mobile insurance through Tigo, followed by Airtel in 2013, serving a customer base of three million customers. As part of the acquisition agreement, MicroEnsure will undergo a rebranding process, emerging as Turaco Ghana with the existing team and leadership remaining intact to ensure a seamless transition. Leona Abban, Turaco Ghana general manager and former MicroEnsure Ghana Country Manager said, “As a pioneer of microinsurance in Africa, we focused on making an impact while providing affordable insurance to low-income customers. Over our 15-year history, our inclusive approach has benefited three million Ghanaians with the safety net of being insured. 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.”
Turaco’s Vision for Growth
Ted Pantone, co-founder and CEO of Turaco, expressed his enthusiasm about this strategic move, stating, “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.” Pantone envisions Turaco’s customer-centric tech solutions as pivotal in delivering affordable insurance coverage.
Turaco’s acquisition of MicroEnsure Ghana represents a significant leap forward in its mission to revolutionize insurance in Africa. With its innovative use of technology, commitment to partnerships, and a vision for increased accessibility, Turaco is poised to make insurance more affordable and accessible to millions of people in the region. This strategic expansion into Ghana paves the way for sustained growth and impact in the insurance industry across the continent.