Insurtech & the Rise of Gig-Economy & Informal Sector Protection

Informal workers, including ride-hailing drivers, delivery riders, market vendors, artisans, and other gig economy participants, often lack access to traditional insurance. Insurtech firms across Africa are stepping in with innovative, flexible "pay-as-you-go" microinsurance solutions tailored to their unpredictable earnings and coverage needs.

Key African Examples & Insights

1. MIC Global (MicroEnsure) + ImaliPay Kenya

• Partnership: MIC Global (formerly MicroEnsure) teamed up with fintech ImaliPay to create digital microinsurance for gig workers in Kenya.

• How It Works: Through API-based integration, gig workers gain access to microinsurance products with short-term, affordable premiums designed specifically for their income patterns and job insecurity.

2. Power Financial Wellness + Turaco Across Africa

• Collaboration: Power (a fintech focused on financial wellness) partnered with insurtech Turaco to offer flexible health insurance to gig and salaried workers.

• Key Features:

  • Digital enrollment via APIs.

  • Premium financing: workers can pay as low as ~$2 per month over 6 to 9 months.

  • Coverage includes credit-life, disability, illness, theft, and hospital care.

3. Turaco’s Embedded & Affordable Model

• Reach: Turaco operates in Kenya, Nigeria, and Uganda, embedding microinsurance via ride-hail apps, BNPL services, and fintech platforms.

• Impact:

  • Over 1.5 million people are insured, with 90% previously uninsured.

  • Monthly premiums, e.g., as low as 500 Nigerian Naira (~$1.20).

  • Fast claims processing via WhatsApp, payouts in under three days, all using mobile money.

4. Mastercard Foundation–MSC Pilot via Lynk – Kenya

• Initiative: Mastercard Foundation commissioned MicroSave Consulting (MSC) to co-create microinsurance for youth gig workers on the Lynk platform (connecting artisans/skill workers to jobs).

• Approach:

  • Designed pay-as-you-go personal accident (PA) coverage tailored to varying income flows.

  • Pilo, in collaboration with Britam Kenya, aimed to cover 400+ gig workers per day, coupled with financial literacy tools.

Why This Matters for Ghana & the Broader Region

1. Flexibility for Irregular Incomes: Gig workers benefit from pay-per-task or installment-based premiums that align with income volatility more feasibly than traditional monthly or annual premiums.

2. Increased Financial Inclusion: These insurtech models reach underserved populations through mobile money, APIs, and partnerships with gig platforms, lowering barriers to access.

3. Trust & Speed: Digital onboarding and claims, via WhatsApp or mobile payments, build credibility quickly, a vital factor in markets where insurance is often mistrusted.

4. Scalable & Affordable Models: Embedding insurance into existing ecosystems (ride-hail apps, fintech wallets, gig platforms) trims distribution costs and expands coverage exponentially.