Vodacom Tanzania this week launched ‘VodaBima’ – a digital service to give customers immediate access to insurance services, with the aim of driving up adoption of insurance solutions in the market.

In a statement released to the media, the company references a Finscope report 2013 which found that insurance uptake in Tanzania was at 13.0% having doubled from 6.8% in 2009.

Despite the double digit growth, Vodacom Tanzania believes insurance to be one of least utilised financial services in Tanzania. Reasons range from low awareness, mistrust of the service and bottlenecks to access the services.

This has formed the backdrop for the roll out of VodaBima.

Speaking in Dar es Salaam, M-Pesa Director, Epimack Mbeteni said that VodaBima is a new addition to M-Pesa portfolio of products and services all aimed at making digital inclusion in Tanzania a reality.

“For 13 years now, Vodacom M-Pesa has been a key catalyst in growth of financial inclusion in the country and we are always looking into new ways of pushing for an inclusive digital economy. Vodacom aims to bridge the gap of access to insurance services by offering a digital solution that will cut down costs and increase access to Insurance products. VodaBima gives customers the option of saving up for Insurance at no cost in their VodaBima wallet throughout the year. VodaBima platform will send out push notifications and SMS alerts when your vehicle Insurance is about to expire," said Mbeteni.

VodaBima leverages on M-Pesa’s technology infrastructure and Vodacom’s wide network and Vodashop footprint countrywide to ensure the access and convenience promised.

The solution also offers simplicity of access to claims and according to developers, currently offers motor-insurance but there are plans to bring in more risk covers as the product evolves.

Zacharia Muyengi, Director of Marketing and Research at Tanzania Insurance Regulatory Authority – TIRA said that increased access to insurance services through mobile phones will benefit more customers as they will now be more aware of insurance services on offer in the market.

‘We work towards developing, promoting and maintaining an inclusive, efficient, fair, safe and stable insurance market for the benefit and protection of policy holders. We welcome use of mobile technology and innovation to bring these services closer to the people. (The) launch of VodaBima is step towards creating a more efficient and transparent service through digitisation of insurance services in the country.’

Britam Insurance Company CEO Raymond Komanga, partners with Vodacom in the rollout of the solution, said that use of telecommunication technology in accessing insurance is a step closer towards making the service widely available to more people services will help mobilise more people to use insurance services and boost the industry as a whole.

“(The) VodaBima service is revolutionary in a sense that it will make it easy and cheaper for clients to access a variety of insurance services from providers. Clients will not have to visit insurance companies in person as they can access insurance services easily and conveniently on their phones. In addition, as the public become more educated on mitigating risk through use of insurance services.”