Little Ethiopia Partners with Lion Insurance to Launch Innovative Ride-Hailing Insurance

Little Ethiopia has partnered with Lion Insurance to introduce a digital insurance product for passengers and drivers, providing coverage up to one million birr for accidents. This initiative charges an additional 15 birr per trip and aims to enhance insurance provisions within Ethiopia’s underinsured market. The new product aims to complement existing third-party insurance and represents a growing trend of bespoke financial services in the ride-hailing industry.

A significant partnership has been formed between the ride-hailing company Little Ethiopia and Lion Insurance, introducing a digital insurance product that covers passengers and drivers with claims up to one million birr. This product, launched at Skylight Hotel, charges passengers an additional 15 birr per trip as a premium, marking a pivotal development in Ethiopia’s insurance landscape.

Abraham Mersha, CEO of Lion Insurance, emphasized the transformative impact of this product on the ride-hailing sector and highlighted Little Ethiopia as an optimal partner, given its extensive corporate clientele. Each passenger will receive a unique ID number to facilitate claims processing in case of an incident. “We will use the ID to settle claims after an accident,” stated Mr. Mersha.

The insurance offers a maximum payout of one million birr should a passenger die during a trip. In addition, the product mirrors similar offerings in Kenya, which protect riders from total and permanent disability, hospitalization costs, and other accident-related expenses, including ambulance reimbursements and cash payouts for hospitalization.

Although Ethiopia’s financial sector has grown recently, the insurance coverage remains low, with less than 1% of the population currently insured. Most coverage is concentrated in motor and maritime insurance, highlighting the need for increased diversity in the insurance market. Little Ethiopia’s new offering is also intended to complement existing mandatory third-party insurance for ride-hailing drivers.

Since 2022, there has been a noticeable trend in the creation of financial products tailored specifically for the ride-hailing industry. While many focus on providing vehicle loans for new entrants, others cater to established drivers. Noteworthy initiatives include partnerships between ZayRide and Awash Bank to offer life insurance, compensating drivers’ families in case of their demise.

Little’s collaboration with Bank of Abyssinia’s Apollo platform also introduced collateral-free loans up to 120,000 birr to their drivers. Berhane Assefa, Corporate Manager of Little Ethiopia, anticipates that the new insurance feature will serve as a valuable selling point for the company’s corporate clients as well. “The service is common in several countries; Ethiopia is just late to the party,” he commented.

A new icon will be integrated into Little’s application to activate the insurance service. Major international platforms like Uber have long provided similar insurance products as part of their service offerings. Furthermore, Nyawira Maina, Regional Manager of Little App, mentioned that the partnership extends beyond traditional insurance, providing vital peace of mind for passengers while hinting at future developments for the service.

As Little Ethiopia approaches three years of operations in the country, the company has expanded significantly since its inception in Kenya nearly a decade ago, now offering a wide range of services through its super app, including bill payments and food delivery, indicating its evolution in Ethiopia as it aims to become a comprehensive solution provider.

In summary, the partnership between Little Ethiopia and Lion Insurance marks an important advancement in the provision of insurance within the ride-hailing sector, aiming to enhance passenger and driver protection. This initiative not only underscores the growing trend of tailored financial products for this industry but also reflects a necessary evolution within Ethiopia’s insurance landscape. Moreover, the integration of digital solutions signifies a progressive movement towards expanding insurance coverage among the Ethiopian populace.

Original Source: shega.co