aYo, an insurance technology startup, has partnered with MTN to provide free insurance to Ivorians via mobile recharge

aYo, an insurance technology startup, has partnered with MTN to provide free insurance to Ivorians via mobile recharge

African insuretech startup aYo has partnered with African telecom giant MTN to launch two services that will provide millions of people in Ivory Coast with free health and life insurance coverage via mobile recharge.

aYo Recharge and aYo Kash are the services. aYo Recharge would provide MTN MoMo users with complimentary accident hospitalization and life insurance. When a user purchases airtime through their MoMo wallets, they receive eight times the amount purchased as accident coverage and twelve times the amount purchased as life coverage.

aYo Kash provides protection against illness, accident, and death. Each time a user sends money, pays a bill, or pays school fees via MTN MoMo, they receive illness coverage equal to the transaction's value. Additionally, they receive accident and life insurance coverage equal to three times the amount transacted, although they must pay a 5% activation premium.

When they pay school fees with MTN MoMo, they receive life insurance for twice the transaction amount after paying a 2% premium. Additionally, users can use the AutoBoost feature to purchase additional covers. Once consumers sign up for aYo, services will become available.

Less than 2% of Ivory Coast's 27 million inhabitants have any form of insurance. According to Jean-Charles N'Gotta, CEO of aYo, this is because the majority of people believe insurance is only for white-collar workers with high incomes. aYo's collaboration with MTN aims to close the gap between everyday people and insurance services.

aYo began operations in Uganda in January 2017 and has since expanded to Ghana, Zambia, and the Ivory Coast. It currently has over 14 million customers in Uganda, Ghana, and Zambia. According to the company, it has paid out more than $1 million in claims.

Insurance in Ivory Coast

Insurance penetration in Ivory Coast remains extremely low at 2%. Normally, this would indicate that there is a sizable market waiting to be explored, but this is not the case. This is because insurance is extremely low on the priority list of the majority of people in the country, if it exists at all.

“The majority of people in Ivory Coast are preoccupied with their immediate needs. This does not mean that there is no market for insurance; it simply means that there is not yet a mass market of insurance users,” explained Kamal Harati, director-general of the Ivorian insurance company KH Assureurs Conseils.

The majority of the country's insurance market is dominated by large insurance companies that cater primarily to white-collar workers. To succeed in this space, smaller businesses must increase adoption among lower-income earners and create new markets.

aYo's most recent offerings appear to be specifically targeted at these low-income earners. It enables them to obtain insurance coverage that is largely free through popular MTN MoMo activities.

According to Jean-Charles N'Gotta, "insurance and the peace of mind it provides have become more critical than ever in today's fast-paced world, where risks are a natural part of life." You never know when you will need to pay to rehabilitate yourself following an accident or illness. Often, the cost is prohibitively expensive, and this is where aYo and our innovative products come in handy.”