A fintech, a commercial bank, and an insurance company have joined forces to launch an integrated digital credit and insurance service. Kacha, the first private mobile money service provider, Lucy Insurance, and Global Bank announced the partnership yesterday morning at the Skylight Hotel. The new service, dubbed Agar, which roughly translates to a supporter in Amharic, allows customers to access insurance without the need for any physical paperwork.
The finance trio also debuted a digital credit service for taxi-hailing drivers and a digital salary advance microloan function accessible through Kacha’s mobile application.
Adeferes Wesene, CEO of Lucy Insurance, said the new services align with the company’s growing portfolio of services, which increasingly include non-life and general insurance products.
The insurance product incorporated in Agar is a third-party motor insurance policy. Car ownership is rising in Ethiopia, with over 1.4 million vehicles on the road, and third-party motor insurance is mandatory.
In August of last year, authorities began enforcing a new proclamation that increased third-party car insurance premiums by up to five times, with rates reaching as high as 4,360 birr for private vehicles. Agar collects premiums starting from 5,000 birr while offering standard insurance services through an online portal.
To activate the insurance, users must upload details such as their plate number, ownership certificate (Libre), chassis number, and photos of the car via the app.
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