Kenyan insurance firm eyes Uganda market in expansion plan

A Kenyan insurance firm is eying the Ugandan market in its expansion plan.

Bluewave Insurance Agency today relaunched in Uganda after seven years of providing affordable insurance solutions for the continent's uninsured and underinsured population.

The relaunch is further in line with the firm's strategic position as it seeks to tap into the larger African market.

With a robust micro insurance digital system, Bluewave offers low-income users an easy access to an array of insurance products while leveraging mobile technology to cut down overheads and operational costs.

The firm’s founder and Group CEO Adelaide Odhiambo said the digital system significantly reduces the insurance premiums compared to what traditional companies charge for motor, health and life covers.   

"We have been refining our processes, products, and partnerships. We are thrilled to announce our renewed focus on introducing our solutions in Uganda, Nigeria, Ethiopia, Malawi, DRC, Tanzania, Rwanda, and Zambia,” said Ms Odhiambo.

She said to increase insurance penetration in Africa's markets characterised by low uptake, the firm has partnered with large aggregators specifically Mobile Network Operators (MNOs) and banks to distribute affordable micro-insurance products.

According to her, in Kenya and Uganda, the firm has already created insurance products that are embedded in the services millions of people already use—like M-Pesa and Airtel Money.

Recently the company spearheaded a tripartite partnership between, Airtel Money Uganda, and AAR, to launch a micro-health project that has garnered more than 100,000 enrolments in less than one month.

“Africa has an ever-growing need for affordable insurance solutions. When we launched Ddwaliro Care, a low-cost comprehensive health insurance cover designed for individuals and large families, we saw a significant uptake in customer enrollments in just a few weeks,” she said.

This, Ms Odhiambo said is proof of the market’s readiness to take up insurance designed with them in mind.

To help it grow, she said Bluewave has accelerated its efforts to attract new policyholders from its database by launching an aggressive on-the-ground campaign.

Based on its experience selling insurance over the years, management anticipates that this strategy will be essential in helping sustain the business into future growth periods.

"We've put careful thought into what lies ahead. To achieve this, We're seeking to raise a prudent investment amounting to USD 6 million over the next three years—an amount that will allow us to take advantage of the burgeoning micro insurance demand in the market,” she said.

Expansion strategy

Ms Odhiambo said insurance penetration in Africa is still very low and approximated to be less than 3 per cent of the continental GDP.

This to her presents a huge opportunity for growth by availing well-researched products that meet the needs of the African population

She said over the next five years, Bluewave intends to grow its customer base by making profitable investments in consumer education which has always been a key part of their business strategy.

On the data protection front, Ms Odhiambo said the firm remains committed to upholding data privacy and protecting clients’ insurance data as a top priority.

“Bluewave continues to explore how blockchain and AI technology can be incorporated into its software, to make it easier for clients to use the system while still maintaining their information private,” she said.