Kenyan insurtech startup Turaco has acquired MicroEnsure Ghana from MIC Global. The acquisition, which was announced on September 20, 2023, is part of Turaco’s broader growth and expansion strategy for Africa.
Under the terms of the deal, MicroEnsure Ghana will rebrand to Turaco Ghana and retain the expertise of the existing team and leadership. The acquisition increases Turaco’s operational markets to four – Kenya, Uganda, Nigeria, and now Ghana – and active policies by 25%.
The acquisition is expected to benefit both new and existing customers of Turaco Ghana. New customers will benefit from improved tech-driven processes, which will reduce the turnaround time of claims paid out and optimize service offerings. Existing customers will benefit from Turaco’s customer-centric tech solution, which provides affordable and accessible cover.
The acquisition will also provide an opportunity for Turaco to bolster partnerships with incumbents and develop a strategic reinsurance partnership with MIC Global, one of the leading micro-reinsurance businesses in the world.
Impact on Ghana’s Insurance Sector
Ghana has one of the widest insurance coverage levels in Africa, with more than 60% of its population holding either the National Health Insurance Scheme (NHIS) or a private health insurance scheme. However, millions of Ghanaians still lack access to healthcare, with more than 10% experiencing catastrophic financial shocks due to yearly health expenditures. Those who do have insurance find it hard to use, with complex exclusions and slow turnaround times for claims payment.
Turaco’s acquisition of MicroEnsure Ghana is expected to have a positive impact on Ghana’s insurance sector. Turaco’s customer-centric tech solution and its focus on making insurance affordable and accessible are expected to make insurance more accessible to millions of Ghanaians who are currently uninsured or underinsured.
Turaco’s Growth and Expansion Strategy
Turaco was launched in 2019 with a mission to increase access to affordable insurance with a seamless and customer-centric approach. The company uses technology to embed its insurance service as a white-labelled offering that is bundled with a partner’s core product or service, integrating with their existing payment processes to collect premiums.
Turaco has active partnerships with tech-enabled, mass-market companies such as telcos, banks, and fintechs in Nigeria, Kenya, Uganda, and now Ghana. Through these partnerships, Turaco has designed and delivered a suite of bespoke insurance packages, including medical, life, asset, and vehicle insurance, that have already covered over 1,300,000 lives across these four countries.
The acquisition of MicroEnsure Ghana is a significant milestone for Turaco’s growth and expansion strategy for Africa. The acquisition gives Turaco a foothold in Ghana, one of the largest and most developed insurance markets in Africa. It also provides Turaco with an opportunity to expand its product offerings and reach a wider range of customers in Ghana.
