Vodacom Tanzania has teamed up with Britam, an East African insurance company, to launch VodaBima.
VodaBima is a microinsurance platform available via Vodacom’s M-PESA menu in Tanzania, .
VodaBima allows consumers to save for insurance in their VodaBima wallet at no expense during the year.
When your car insurance is about to expire, the VodaBima app will give you push notifications and SMS updates. The product would put insurance programs closer to consumers, improving convenience and accessibility while also boosting the country’s insurance industry.
M-Pesa Director Epimack Mbeteni said in Dar es Salaam that VodaBima is a recent addition to M-portfolio Pesa’s of products and services, all of which are aimed at bringing digital inclusion to Tanzania.
“Vodacom M-Pesa has been a crucial driver in the growth of financial inclusion in the country for the past 13 years, and we’re still looking for new ways to push for a more inclusive digital economy. Vodacom aims to close the gap in insurance access by providing a digital solution that reduces costs and expands access to insurance products. VodaBima allows consumers to save for insurance in their VodaBima wallet at no expense during the year.
To ensure the access and convenience promised, VodaBima makes use of M-technology Pesa’s infrastructure, as well as Vodacom’s extensive network and Vodashop footprint across the region.
According to the developers, the solution also provides easy access to claims and currently only offers motor insurance, although there are plans to add more risk covers as the product progresses.
Increased access to insurance services through mobile phones, according to Zacharia Muyengi, Director of Marketing and Research at Tanzania Insurance Regulatory Authority – TIRA, would help more customers because they will be more aware of insurance services available in the market.
‘For the good and safety of policyholders, we strive to create, promote, and sustain an inclusive, competitive, equitable, secure, and stable insurance market. We applaud the use of mobile technologies and creativity to make these programs more accessible to the public. The launch of VodaBima is a step toward making insurance services in the country more effective and transparent through digitisation.’
The use of telecommunication technology in accessing insurance is a step closer to making the service widely accessible to more people, according to Britam Insurance Company CEO Raymond Komanga, who is a collaborator with Vodacom in the rollout of the solution. This would help mobilize more people to use insurance services and improve the industry as a whole.
Despite double-digit growth, Vodacom Tanzania believes that insurance is one of Tanzania’s least-used financial services. Low awareness, distrust of the service, and connectivity bottlenecks are some of the reasons.