Bima Ya Buku is using FinTech to democratize Insurance for Boda Boda Riders. 40 Days 40 FinTechs Tanzania Day 23
Public road transport is a common and pocket-friendly type of transport across East Africa. It is either you use a bus, coaster, taxi, cab or get a motorbike.
Motorbikes have over the years been transformed into different types and given different names. Depending on the East African country you reside in, you will hear names such as Boda Bodas, Tuk Tuks and Bajaj.
In Tanzania, the most popular are Boda Boda – a two-wheeled motorbike or Bajaj – two or three-wheeled Rickshaws. These employ hundreds of people and transport thousands of passengers every day.
Even though so popular, Boda Bodas and Bajajs as known in Tanzania come with dangers such as many accidents, theft, unskilled personnel, absent mechanical maintenance and health issues caused by poor hygiene. This is worsened by the fact that the market has over the years lacked well-tailored products targeting this sector; for example, most of the health and insurance products on the market are very expensive for the Boda Boda sector.
But this is fast changing. In 2023, CRDB Bank launched motorcycle taxi insurance, targeting the Boda Boda and Bajaj riders.
Implemented in partnership with Laina Finance, Bima Ya Buku is a revolutionary Insurance scheme targeting the motorbike business. The scheme is payable in instalments of TZS 1,000/- a day for three months after which the rider enjoys motor and health insurance.
“Towards the end of September, we launched a new Insurance proposition in partnership with Laina Finance. The product goes by the name Bima Ya Buku which speaks directly to its pricing. Buku means TZS 1,000 which is less than a dollar. Through Bima Ya Buku, riders get insurance for their motorcycles, medical insurance, life insurance and condolences. It is a package of four but also includes liability insurance for the third party that utilizes these Bajaj and Boda Boda services,” Moureen Majaliwa, the Head of Bancassurance at CRDB Bank.
“The payment for this product is set on a daily but users have room to pay weekly, ten days or quarterly. This is a first-of-its-kind value proposition that considers all market realities. The product is 100 per cent accessible digitally through our USSD. It takes you less than 20 seconds to own an insurance which protects not only your assets but also your health.”
Majaliwa noted that while the product has received a great reception with hundreds of riders enrolling, it is not without challenges.
“The biggest challenge we are facing is limited awareness among our target audience. But as a bank, we have invested a lot in terms of media, influencers, and social media messaging to address this.
We interacted with Bima Ya Buku by CRDB Bank on Day 23 of the 40 Days 40 FinTechs initiative for Tanzania. First implemented in Uganda, 40 Days 40 FinTechs is an annual FinTech Innovation initiative presented by HiPipo to recognize and celebrate individuals and organizations who are making significant strides in promoting financial inclusivity through the use of technology.
It is aimed at promoting innovation and collaboration among FinTechs in Africa. The initiative is designed to provide FinTechs and startups with mentorship, training, exposure, and networking opportunities to help them grow and scale their businesses.
Majaliwa noted that the 40 Days 40 FinTechs is helping tackle the issue of silos that has undermined the industry for ages.
“There have been very few partnerships, collaborations and engagements which allowed different platforms to share data. But with 40 Days 40 FinTechs activities, we now know that we are focusing on a similar financial inclusion goal. As such, every other person is looking at how we can work together to deliver impact.”
40 Days 40 FinTechs initiative Tanzania is part of HiPipo’s broader Include EveryOne Program that is generously supported by the Gates Foundation and implemented in partnership with Level One Project, ICTC Tanzania, Ideation Corner, Cyber PLC Academy, INFITX, Crosslake Technologies, NG Films, Founders Academy and Mojaloop Foundation.
The Include EveryOne program is a beacon of acceleration of FinTech Innovation, empowerment for Women in FinTech and a catalyst for investment and development in the ICT sector. Minus 40 Days 40 FinTechs, other initiatives under the Include EveryOne Program are the FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit and Incubator, Digital Impact Awards Africa and the Digital and Financial Inclusion Summit.
HiPipo is recognized as a premier advocate of digital Innovation and financial inclusion champion, a fervent proponent of the #LevelOneProject. HiPipo has been at the forefront, actively promoting digital innovation, Instant, Inclusive Payment Systems (IIPS), and DFS across Africa. With a legacy of advising, mobilizing, and facilitating the adoption of inclusive financial services, HiPipo’s efforts have been nothing short of transformative! For almost two decades, HiPipo has successfully facilitated the inclusive adoption of these crucial services.