100,000+
Ethiopians now benefiting from affordable insurance options.
1,000’s
Of insurance policies are issued and funded.
200M
ETB in premiums financed, protecting homes, businesses, and vehicles.
30%
Of users are young adults (18-35)
The problem
Ethiopia’s insurance sector remains underdeveloped, with a penetration rate of just 0.8% of the population, according to a 2022 FSD Africa and CENFRI study. Dominated by the state-owned Ethiopian Insurance Corporation, the sector struggles with manual processes and high barriers to entry, including stringent capital requirements imposed by the National Bank of Ethiopia. These challenges have left vulnerable populations, such as farmers, self-employed individuals, and MSMEs, without affordable insurance options, despite a critical need for financial protection.
The solution
In response, Kacha Digital Financial Services (DFS), Ethiopia’s first private mobile money operator, is transforming insurance accessibility through digital innovation. Partnering with Lucy Insurance S.C. and Global Bank of Ethiopia, Kacha introduced digital premium financing to address the affordability gap. Supported by FSD Africa’s BimaLab Insurtech Accelerator Programme, Kacha designed customer-centric solutions to tackle product design and risk assessment challenges.
Its mobile technology platform now enables users to finance insurance premiums for motor vehicles and other products through manageable instalments, eliminating upfront cost barriers. Consumers can purchase and manage insurance policies seamlessly via mobile phones, combining Lucy Insurance’s industry expertise with Kacha’s technological edge.For many individuals, Kacha’s services have already made a tangible difference.
The impact
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. As Kacha’s services expand, they are driving financial inclusion and resilience across Ethiopia. By leveraging technology and partnerships, Kacha exemplifies the potential for innovative solutions to empower underserved communities and foster an inclusive financial future.