Bluewave Insurance Agency is preparing for a strategic relaunch and regional expansion in Africa by partnering with Mobile Network Operators (MNOs).
Bluewave’s robust microinsurance digital system offers low-income users easy access to an array of insurance products while leveraging mobile technology to reduce overheads and operational costs, resulting in significantly lower insurance premiums compared to traditional companies offering motor, health, and life covers.
Adelaide Odhiambo, Founder and Group CEO of Bluewave Insurance Agency, stated, “After refining our processes, products, and partnerships, we’re thrilled to announce our renewed focus on introducing our solutions in Uganda, Nigeria, Ethiopia, Malawi, DRC, Tanzania, Rwanda, and Zambia.”
To increase insurance penetration in Africa’s markets characterized by low uptake, the company has partnered with large aggregators, specifically Mobile Network Operators (MNOs) and banks, to distribute affordable micro-insurance products.
In Kenya and Uganda, Bluewave has already embedded insurance products in widely used services such as M-Pesa and Airtel Money.
The company recently spearheaded a partnership between Airtel Money Uganda and AAR to launch a micro-health project that has garnered more than 100,000 enrollments in less than one month.
Adelaide explained, “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. This is proof of the market’s readiness to take up insurance designed with them in mind.”
To support its growth, Bluewave has accelerated its efforts to attract new policyholders from its database by launching an aggressive on-the-ground campaign. The company plans to raise a prudent investment amounting to USD 6 million over the next three years to take advantage of the burgeoning microinsurance demand in the market.
The Task Ahead
Insurance penetration in Africa is still very low, estimated to be less than 3% of the continental GDP, presenting a significant growth opportunity by offering well-researched products that meet the needs of the African population.
Over the next 5 years, Bluewave intends to grow its customer base by making profitable investments in consumer education. Adelaide added, “Educating customers about our products has always been a key part of our business strategy.”
On the data protection front, the company remains committed to upholding data privacy and protecting clients’ insurance data as a top priority. As it grows, 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.
Adelaide expressed excitement about the expansion plans for 2024, highlighting that with the right focus and determination, overcoming challenges leads to achievements beyond imagination.
Bluewave was founded by Adelaide Odhiambo in 2016 and has developed a robust micro-insurance system that offers users easy access to an array of insurance products and services. Bluewave currently has operations in various markets in Africa with an over 100,000 customer base across its East African markets.
Bluewave’s Current Leadership & Position of the Potential Acquisition by Lami
In February 2022, the two companies entered a strategic non-exclusive partnership granting Lami Global a license to use Bluewave’s Technology to serve their mutual microinsurance partners for a specified period of two years.
Bluewave clarifies that the publication of an acquisition of Bluewave in various media outlets by Lami was an unfortunate misrepresentation of the factual contractual partnership agreement between the two companies in place at that time.
Additionally, Bluewave’s main drive is to continue to be a fully-fledged and independent insurance industry player that has leveraged technology with a vision to offer the African mass market easily accessible and affordable insurance products directly from their mobile phones.
The unsuccessful acquisition is in line with a Harvard Business Review report which estimates that 70%-90% of all M&A deals do not succeed, either because they do not live up to the transaction price or they fail to properly integrate the new business.