Little Ethiopia collaborates with Lion Insurance to launch a digital insurance product for ride-hailing services. The initiative offers insurance coverage up to one million birr for passengers and drivers, requiring a 15 birr premium per trip. This is a significant step towards enhancing safety and expanding insurance coverage in Ethiopia’s evolving financial sector.
Little Ethiopia has partnered with Lion Insurance to introduce a new digital insurance product for the ride-hailing industry, providing coverage for both passengers and drivers. This insurance, which was launched at the Skylight Hotel, offers claims up to one million birr and entails an additional premium of 15 birr per trip for passengers.
Lion Insurance’s CEO, Abraham Mersha, emphasized the significance of this product for the sector, citing Little’s status as a promising partner due to its expansive corporate clientele. Each passenger will receive a unique ID number associated with their trip, facilitating the insurance process and claim settlement in case of accidents.
The insurance scheme promises a maximum payout of one million birr for fatalities occurring during rides. This initiative aligns with similar coverage offered by Little in Kenya, which addresses total disability, hospital expenses, ambulance reimbursements, and offers cash payouts for hospital admissions due to accidents.
Despite the growth of Ethiopia’s financial sector, insurance penetration remains underwhelming, with only 1% of the population currently covered. Little’s offering supplements the existing mandatory third-party insurance for ride-hailing drivers, presenting a much-needed innovation in Ethiopia’s relatively stagnant insurance market.
Since 2022, several financial products aimed at the ride-hailing industry have emerged. For example, ZayRide and the now-closed Wez collaborated with Awash Bank to provide life insurance for drivers, while Enat Bank offers credit services covering a variety of driver-related expenses.
Additionally, Little Ethiopia has joined forces with Bank of Abyssinia to facilitate collateral-free loans for drivers, potentially strengthening its service offerings. Berhane Assefa, Corporate Manager at Little Ethiopia, believes the insurance coverage will attract more corporate clients, enhancing the company’s competitive edge.
The Little app will now feature a new icon activating the insurance service, reflecting a broader trend within the ride-hailing sector. Nyawira Maina, Regional Manager of Little App, notes that this partnership not only delivers insurance but also enhances passenger confidence, taking inspiration from their successful Super App in Kenya.
Having recently marked nearly a decade in Kenya, Little Ethiopia’s integration of innovative services is poised to redefine user experiences in Ethiopia’s ride-hailing landscape as it approaches its third anniversary in the country.
The partnership between Little Ethiopia and Lion Insurance marks a significant advancement in the ride-hailing sector, providing critical insurance coverage that enhances safety for passengers and drivers alike. With the introduction of a digital insurance product and expanded financial services, both companies aim to address the pressing need for more comprehensive insurance offerings in Ethiopia. This initiative may well set a precedent for further innovations and improvements in the insurance landscape within the country.
Original Source: shega.co
