Affordable accident and death cover insurance plays a pivotal role in propelling the micro insurance industry. Designed for low-income individuals, these policies offer essential protection without straining limited budgets. For instance, in April 2023, aYo Holdings, an insurtech company established by MTN, the telecommunications leader in Africa, initiated its services in Cameroon. The company introduces innovative insurance products that provide affordable accident and death coverage to local consumers.
By providing accessible coverage against accidents and death, micro insurance becomes a practical and feasible option for vulnerable communities. This affordability enhances financial security and encourages greater adoption of micro insurance, thereby driving growth and ensuring widespread coverage among underserved populations.
Digitalization in enrollment and premium payments is revolutionizing the micro insurance market. By leveraging digital platforms, insurers streamline the enrollment process, making it quicker and more accessible for low-income individuals. Digital payment options enhance convenience, enabling policyholders to pay premiums through mobile apps or online platforms and eliminating the need for physical transactions. This seamless experience encourages more people to enroll and makes it easier, faster, and more user-friendly for both insurers and policyholders, expanding the market reach and boosting the growth of market.