Redefining insurance for Ethiopian communities, making it accessible and affordable.
Ethiopians now benefiting from affordable insurance options.
Of insurance policies are issued and funded.
ETB in premiums financed, protecting homes, businesses, and vehicles.
Of users are young adults (18-35)
Kacha is the first fintech in Ethiopia to offer digital insurance service financing
Ventures from 10 African countries selected to participate in FSD Africa’s BimaLab Insurtech Accelerator Program
Ethiopia’s insurance sector is marked by limited accessibility and low penetration, with only 0.8% of the population insured, as revealed by a 2022 study by FSD Africa and CENFRI. The sector is dominated by a few players, notably the state-owned Ethiopian Insurance Corporation, and is heavily reliant on manual processes. Further compounded by the National Bank of Ethiopia’s stringent capital requirements, many smaller companies and startups struggle to enter the market, while individuals and micro, small, and medium enterprises (MSMEs) remain underserved. This environment has left Ethiopia’s most vulnerable populations, including farmers and self-employed individuals, without affordable insurance options, despite a pressing need for protection against financial risks.
In response, Kacha Digital Financial Services (DFS) has stepped forward as Ethiopia’s first private mobile money operator, seeking to revolutionise insurance accessibility through digital innovation.Kacha DFS, a rapidly growing fintech, has partnered with Lucy Insurance S.C. and Global Bank of Ethiopia to introduce digital premium financing options, bringing insurance within reach for those previously excluded. Supported by FSD Africa’s BimaLab Insurtech Accelerator Programme, Kacha leveraged its training to develop and refine a customer-centric model that addresses key challenges in product design and risk assessment. Through this collaboration, Kacha now offers digital loans that allow customers to finance their insurance premiums for motor vehicles and other products in manageable instalments, removing the upfront cost barrier that has traditionally deterred many Ethiopians. The integration of Lucy Insurance’s industry experience with Kacha’s mobile technology platform is transforming the landscape, enabling consumers to purchase and manage insurance policies entirely through their mobile phones.
For many individuals, Kacha’s services have already made a tangible difference. Genot Mentesenot, a 26-year-old café owner in Addis Ababa, had previously managed her business transactions in cash—a method fraught with risks and inconveniences, particularly given the prevalence of theft. Through Kacha’s digital payment and money transfer platform, Genot can now conduct secure, cashless transactions, which has not only safeguarded her earnings but also increased customer convenience, resulting in boosted sales. This initial success has spurred Kacha to advance its insurance solutions, such as premium financing options that will soon enable taxi and vehicle owners to obtain insurance coverage directly through their phones, stabilising incomes that might otherwise be jeopardised by accidents or breakdowns. As Kacha’s services expand across Ethiopia, they continue to create new possibilities for financial inclusion, resilience and empowerment, symbolising a transformative step towards an inclusive financial future for all Ethiopians.
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