Nyala Insurance has become the first Ethiopian insurance company to integrate M-Pesa, Safaricom’s mobile money service. Under the agreement, Nyala Insurance customers can make premium payments, renew policies, and conduct other insurance-related transactions through M-PESA.
Safaricom M-PESA will also provide Nyala Insurance with access to the M-PESA platform enabling the Insurer to accept mobile payments in real time. This will allow Nyala Insurance to reach a wider customer base, streamline their payment processes, and offer greater flexibility to their clients.
M-Pesa, officially Launched in Ethiopia on August 2023, has been integrated into the mobile banking service of several banks while just foraying into the insurance sector.
Ethiopia has one of the smallest insurance penetration rates in the world, with less than 1% of the over 120 million citizens being insured. While 18 insurance companies operate in the country with assets close to 40 billion birr last year, over half of the coverage is either for motor or maritime insurance.
By embracing M-Pesa, Nyala hopes to overcome some of the barriers to insurance adoption, particularly in rural and underserved areas where traditional banking services remain limited.
During the Insurer’s 30th general assembly meeting in November, Nyala reported gross profits of 634 million birr while settling nearly 350-million-birr claims in the 2023/24 financial year.
For Nyala Insurance, the integration with M PESA represents a step toward improving accessibility and efficiency in a country where mobile money services are rapidly gaining traction, according to Tegegn Masresha, Chief Customer Officer of Nyala Insurance.
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