Bboxx, a data-driven super platform and advocate for economic empowerment in Africa, has taken a significant step towards enhancing financial resilience in Nigeria. In collaboration with Turaco, Africa’s insurtech, Bboxx aims to offer insurance products to its pay-as-you-go solar home system customers. This partnership is designed to provide a safety net for rural borrowers, protecting them from financial shocks that could undermine their financial stability.
By joining forces, Bboxx and Turaco are enabling Bboxx’s customers to purchase insurance coverage that safeguards them against hospitalization, permanent total disability, and death. The insurance is underwritten by Leadway Assurance Company Limited. Not only does this insurance provide a financial cushion in the face of unexpected events, but it also prevents customers and their families from falling into debt. In the event of catastrophic events, the outstanding loan is repaid.
The inclusion of insurance in Bboxx’s product offering is a significant stride towards its goal of promoting economic empowerment in Africa and accelerating the transition to the digital economy. Currently, only 3% of Nigerians have health insurance, and rural individuals and informal workers are even less likely to be insured. Consequently, over 40% of Nigerian households face exorbitant out-of-pocket health expenses each year. Affordable and straightforward insurance options are often inaccessible to low-income households in rural Nigeria.
Ernest Akinlola, the Managing Director of Bboxx Nigeria, expressed his enthusiasm about the partnership, stating, “Bboxx Nigeria aims to provide clean energy to 20 million people over 10 years. However, we recognize that to truly drive inclusive and sustainable economic growth, it is crucial to bundle financial services with our core solar home system. We are thrilled to collaborate with Turaco to offer additional value to our customers.”
Bboxx and Turaco have joined forces to offer affordable health insurance to individuals who are often excluded from insurance coverage. Turaco is specifically targeting underserved customers and low-income earners, providing them with insurance products priced at less than ₦2,000 per month. These products come with simple terms and conditions, and the claims process is fully digitized, allowing Bboxx customers to file claims through WhatsApp or phone calls. Claims are processed within three days and paid out via mobile money.
Toba Obaniyi, the Managing Director of Turaco Nigeria, expressed his excitement about partnering with Bboxx, emphasizing the importance of expanding access to digital financial services. With Turaco’s innovative digital customer journey and easy claims process, they aim to provide Bboxx’s rural customer base with a seamless user experience and valuable insurance products.
This partnership has been made possible with the support and guidance of FSD Africa and Bimalab, with backing from NAICOM. BimaLab is a crucial partner for Turaco in Nigeria. Nigeria is at the forefront of creating a regulatory environment that fosters innovation, enabling initiatives like this to significantly increase the number of insured individuals.