Turaco, a Kenyan insurtech company, has spent six years disrupting the underpenetrated insurance market with less than $2 premiums. However, its latest partnership with M-KOPA–a pay-as-you-go financing startup–marks its biggest move yet. By embedding microinsurance into M-KOPA’s smartphone offerings, the company has bet on a tech-driven approach to tackling Kenya’s low insurance penetration.
On Tuesday, Turaco told that its embedded insurance offering on M-KOPA’s locally assembled smartphones has provided coverage to over one million customers in Kenya. The achievement follows M-KOPA’s sale of more than 1.5 million smartphones from its Nairobi assembly plant, which accounted for 20% of all new devices sold in the country in 2024, according to data from the Communications Authority of Kenya (CA).
“This product is built on our belief that insurance should be accessible, affordable, and impactful,” Turaco co-founder Ted Pantone said. “By embedding health cover into M-KOPA smartphones, we’ve made health insurance available to underserved families in a way that is simple and easy to use.”
Traditional insurance in Kenya has struggled to gain traction, with only 3.1% of the population covered outside the Social Health Insurance Fund (SHIF), according to the Insurance Regulatory Authority. High premiums, complex onboarding processes, and slow claims processes have kept millions uninsured.
Turaco’s expansion into M-KOPA’s low-budget smartphones is aimed at reaching the underserved market, which is comprised mainly of low-income earners and the rural population. The push appears to be working by embedding a free inpatient insurance cover into smartphones, eliminating tedious insurance sign-ups.
For M-KOPA and its investors, the deal has been an opportunity to provide phones with other financial solutions, including insurance and affordable credit. The bet could be one of Kenya’s tech industry’s most successful partnerships.
“By embedding health insurance into our smartphones through our “More Than a Phone” offering, we’ve transformed how everyday earners access financial protection,” said Martin Kingori, M-KOPA Kenya general manager.
Kingori said the product was first tested as a cover for the company’s sales agents in Kenya before being rolled out. According to M-KOPA, the bunding model has proved effective, as 75% of its customers were previously uninsured. In 2024, 50% of underwriters used their payouts for medical expenses, while others reinvested the funds in businesses or for household needs.
The integration of insurance into everyday financial tools could be the solution to Kenya’s low insurance penetration. In Kenya, Turaco, M-Tek, and Pula Advisors are tech startups that have embedded insurance in their offerings to boost uptake.
