Zeepay, United Nations Capital Development Fund (UNCDF) and MoneyGram have introduced a new microinsurance cover exclusively for customers of MoneyGram as well as their families and friends.
The service, known as Beneficiary Micro Insurance, under the Zeemicro suit on Zeepay, allows all MoneyGram customers that receive remittance from abroad to be enrolled automatically on a free microinsurance service, which is valid for a month with full benefits.
The cover is underwritten by reputable insurance partners such as Hollard Insurance, GLICO Life Insurance, Enterprise Insurance and State Insurance Corporation.
It is fully approved by the National Insurance Commission and authorized by Bank of Ghana for Zeepay under the Payment Systems and Services Act, 2019 (Act 987).
The product offers death cover of up to GHS5,000; hospitalization up to GHS3,000 (300 a day for 10 days); permanent disability cover of GHS2,500; temporary disability cover of GHS2,500 and clinical illness cover of up to GHS2,500.
CEO of Zeepay, Andrew Takyi-Appiah has been telling journalists that “Insurance traditionally has been about protection and cover, however over the years we have noticed that most insurance companies offer protection rather than both, and that is why most life insurance balance sheets are not growing in the country, as predominantly they have become asset managers – we believe our product Beneficiary Micro Insurance will offer the customers the long-awaited cover required”.
Dede Afriyie Quarshie, General Manager, Commercial at Zeepay, added that, “After three years of research, we observed that most immigrants abroad will have to send about US$1,000 home, whenever there is death in the family. So, we partnered with UNCDF to launch this product for MoneyGram’s customers, which gives a death cover of up to about GHS5,000. So by signing on to the product which costs as little as US$1 (although free for this promotion period of 6 months), the immigrant gets to save GHS5,000 should such an event occur.”
Loretta Ofori-Ani, Zeepay Product Manager, Micro Insurance stated, “Last year we ran a demonstration and were very impressed with the results as we managed to insure over 2000 remittance receivers during that period. We are optimistic that over the next 6months we should be able to sign on about 50,000 MoneyGram remittance receivers making this the most credible micro insurance product in Ghana.”
In Ghana, UNCDF is tasked with leading efforts of the European Union to make remittances available and accessible for youth, women and returning migrants in the targeted areas and build on those flows to grant access to remittance-linked financial services to pave the way for more inclusive formal financial ecosystems.
In fulfilling this objective, UNCDF supports private sector players such as Zeepay Ghana to innovate and increase access and usage of these digital services. This partnership is around three critical pillars of the UNCDF action in Ghana under the GrEEn Project: 1) increase access and proximity of services reaching the underserved, 2) impact and improve jobs in the DFS sector and 3) promote usage of digital financial services.
Under this partnership, Zeepay will increase access to and usage of digital financial services including remittance-linked services such as microinsurance for youth, women, and returning migrants in Ashanti and Western regions. “Zeepay will create a new paradigm in the areas of intervention of the GrEEn project by expanding its product offerings and network of agents in areas where access to financial services and remittances remain a challenge, especially for youth and women” said Arianna Gasparri, Technical Specialist, Inclusive Digital Economies, UNCDF.