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

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. After
the 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 Musoni
loans 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.