Little Ethiopia Partners with Lion Insurance to Launch Digital…

Little Ethiopia has partnered with Lion Insurance to launch a digital insurance product for passengers and drivers in the ride-hailing industry. The initiative involves a premium of 15 birr per trip and offers coverage claims up to one million birr. This marks a significant advancement in Ethiopia’s insurance landscape, previously lacking diversity and penetration.

A significant collaboration has been established between Little Ethiopia and Lion Insurance, aiming to revolutionize insurance in the ride-hailing sector. This partnership introduces a digital insurance product that offers coverage for passengers and drivers, with claims reaching up to one million birr. The initiative was formally launched at the Skylight Hotel, where an additional fee of 15 birr per trip was disclosed to passengers.

Abraham Mersha, the CEO of Lion Insurance, commended this innovation as transformative for the ride-hailing industry. He emphasized Little Ethiopia’s suitability as a partner, citing its substantial corporate clientele. Passengers will receive unique identification numbers to document their journeys, which will be communicated to the insurer, the ride-hailing service, and the customers for effective claim settlements in case of accidents.

The insurance product guarantees a maximum payout of one million birr in cases of fatalities occurring during rides. Comparatively, in Kenya, Little provides similar insurance covering total and permanent disability, hospitalization expenses, and life in the event of an accident. Additional services include ambulance reimbursements and cash payouts for hospital admissions due to such incidents.

Despite notable improvements in Ethiopia’s financial sector, insurance penetration remains low, with fewer than 1% of the population currently insured. The majority of existing policies pertain exclusively to motor and maritime insurance, highlighting a need for greater diversity in the Ethiopian insurance market. This new offering is designed to supplement the mandatory third-party insurance already required for drivers in the ride-hailing industry.

Since 2022, there has been a notable increase in financial services aimed at the ride-hailing sector. This trend includes initiatives providing vehicle loans for new entrants and tailored financial products for current drivers. For example, ZayRide collaborated with Awash Bank to offer life insurance for drivers, equalizing compensation to three years’ earnings in case of death during service.

Additionally, Enat Bank has extended credit services such as loans for tax obligations and vehicle maintenance. In 2023, Little Ethiopia launched a partnership with the Bank of Abyssinia’s neobanking service, Apollo, to offer collateral-free loans up to 120,000 birr for drivers, reflecting a comprehensive approach to enhancing driver welfare and support.

Berhane Assefa, Corporate Manager of Little Ethiopia, foresees the new insurance features acting as a significant selling point, particularly due to the company’s extensive corporate clientele. He remarked on Ethiopia’s timeliness in adopting such services, noting their widespread presence in other nations.

The Little application will soon feature an icon to activate the new insurance service. Internationally recognized brands like Uber incorporate similar insurance protections as part of their service offerings through comprehensive safety toolkits. Nyawira Maina, Regional Manager of Little App, articulated that this partnership extends beyond mere insurance to facilitate peace of mind for users, alluding to potential advancements in Ethiopia inspired by the Little Super App in Kenya.

With nearly a decade of successful operation in Kenya and recent expansions into Uganda, Tanzania, and Zambia, Little has established a multifunctional super app that provides diverse services such as bill payments, food delivery, and attendance management. As Little Ethiopia approaches its third anniversary in the country, this new insurance initiative marks a pivotal moment in its continued expansion and service enhancement.

In conclusion, the partnership between Little Ethiopia and Lion Insurance signifies a pivotal advancement in the ride-hailing insurance market. By providing coverage up to one million birr and a streamlined claims process, the initiative aims to enhance passenger and driver security. Furthermore, as Ethiopia’s financial services evolve, this endeavor opens pathways for greater insurance accessibility and diversification, positioning Little Ethiopia at the forefront of innovation in the sector.

Original Source: shega.co