PEG Africa, West Africa’s pay-as- you-go financing firm has partnered with BIMA, the global microinsurance and health pioneer, and Prudential Life to give free insurance cover as a reward to loyal customers and those that timely remit their loan repayment. The two firms says they have already provided insurance cover to over 2000 families during pilot but they will now scale the program nationwide. The medical insurance cover underwritten by Prudential Life pays out for every night spent in hospital as a result of illness or injury. Prudential Life, has 1.268 trillion USD in assets under management and 49,000 employees. “We are excited to be at the forefront of our industry, being the first player to provide these kinds of value -added services to rural consumers. BIMA has worked hard to design a product around the needs of our customers and the results from the pilot are very positive. With this cover, our customers have the security of knowing that unexpected healthcare costs won’t limit their ability to access life-changing solar power”,’ said Hugh Whalan, Chief Executive Officer of PEG Africa. PEG provides financing for solar products to low -income households on a 12 month rent-to-own plan, and PEG’s typical customer lives in a rural area and earns $5-$10 per day, spending up to 30% of that income on poor quality fuels such as kerosene, candles and batteries. While these customers have little ability to purchase a solar home system for cash, the payment plan offered by PEG allows them to purchase it over time, building ownership in the asset over 12 months with daily payments of 50 cents. One of the primary reasons that PEG’s customers cease repaying their solar loan on-time is a health emergency that requires hospitalization. Poor consumers often have little or no savings, and an unexpected emergency or health issue can mean they spend the following months living hand-to-mouth. Realising this challenge, PEG worked with BIMA to create a unique insurance product that is specifically tailored to the kinds of emergency situations faced by a poor rural household. Russell Haresign, Ghana Country Manager at BIMA, commented, “The PEG hospitalization product means that a period of illness or injury won’t prevent a family from paying for the services it needs to succeed. We are very proud to work with PEG, creating an innovative solution that tackles a business challenge whilst creating real value for consumers”. Reads 2,078
West African pay-as-you-go financing company Prudential Life is working with global microinsurance and health firm BIMA and insurer PEG Africa to give free insurance coverage to loyal customers and those that make their repayments on time. The companies have already given 2,000 families insurance during their pilot project, which they now plan to expand nationwide. The insurance includes medical coverage from PEG Africa, which includes overnight hospital care. Prudential Life also offers financing for solar power products to lower income households, which are intended to replace higher cost energy and light sources such as kerosene, candles and batteries.