Power through Partnership – New market opportunities for InsurTech in the ride-hailing sector

The ride-hailing market in Africa is currently booming. In 2019 a total of $128.4 million USD was invested into transport and logistics companies in rounds totalling $1 million USD or more. In 2019, 13% of the total investment went into transport and logistics, 40.6% of this was invested in ride-hailing or ridesharing solutions.

We surveyed bodaboda motorcycle taxi riders who are either independent or affiliated with ride-hailing companies in Nairobi. We look in more detail at both insurance coverage and some of the factors influencing purchasing decisions.

insuretech survey responses from boda riders in kenya

Microinsurance has a low but growing market penetration

The market penetration for microinsurance products is currently 2.6% of the population living under $2 USD per day

Our survey suggests that customers are knowledgeable and see value in insurance

100% of survey respondents agreed that they knew about available insurance products and 73% of respondents agreed that insurance products are important

Partnerships are an effective way of increasing penetration, however, barriers still remain to effective product retention

Independent drivers, unaffiliated with any ride-hailing company, were less likely to have any insurance products other than those that are a mandatory requirement. 35% of riders affiliated with a ride-hailing company had personal health insurance and over 90% had comprehensive motor insurance. 0% of independent riders had any form of health and comprehensive insurance cover.

This report was first published in December 2019.

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Contact the authors for more information about our Insight

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