By Ifeoma Okeke-Korieocha

Copyright businessday

In a bid to bolster social protection for grassroots communities, ASHA Microfinance Bank (the Nigeria subsidiary of ASA International Group, one of the world’s largest international microfinance institutions) has launched its Lifecare Scheme, a new initiative aimed at providing insurance support for small businesses and low-income earners.

ASHA Microfinance Bank has partnered with Turaco, Africa’s leading microinsurance and technology company coupled with Leadway Insurance, to offer enhanced credit life insurance.

The launch was marked by a sanitation and health exercise at the Bola Ahmed Tinubu Ultra-Modern Market, Ile -epo, drawing traders, community leaders, and bank officials together in a show of collective responsibility.

According to the Managing Director and CEO of ASHA MFB, Funmilola Paseda Oladoyinbo, at the event stated that the Lifecare programme seeks to cushion traders and families from financial shocks, a pressing need given that insurance coverage in Nigeria remains below three percent. Emphasising that the partnership aims to embed this insurance into ASHA’s loan products, offering protection against financial shocks and increasing financial resilience for its customers.

Further speaking at the launch of the product, she emphasised that the essence of the launch is to help ASHA’s clients understand the impact of having to safeguard themselves against future losses. “We don’t plan for losses, we don’t plan to be sick, we don’t plan for breadwinners to pass away, and we don’t even plan for our businesses, probably our stores to catch fire,” she stated, “But things happen. The foundation we are laying today is getting our clients to understand the need for micro-insurance while taking loans from us.” The foundation we are laying today is getting our clients to understand the need for micro-insurance while taking loans from us.

With a client base of about 170,000 spreads across 270 locations in Nigeria, ASHA Microfinance Bank believes strongly that it can mobilize at least 500,000 clients for the micro-insurance product in the next few months through various stages of awareness programs within the communities it serves. She noted that the bank is spread across various regions in Nigeria, and it intends to sensitize its clients through various stages of sensitization programs.

One of the challenges of insurance penetration in Nigeria is education. Many people, especially market women, do not understand the concept of insurance. Oladoyinbo acknowledged this challenge and emphasised the importance of education. “Beyond the 4 walls of our banking halls, we need to speak to them and let them know the product is all about them,” she said. “This launch is actually meant to be taking place in the four walls of our branches. But we said for us to be able to sensitize our clients, and of course the new ones too, not just the existing clients, we need to come out in the market, we need to speak to them.”

The partnership between ASHA Microfinance Bank and Turaco is a significant step towards deepening insurance coverage in Nigeria. By providing credit life insurance to market women, the partnership aims to reduce the financial vulnerability of these women and their families. According to Oladoyinbo, the insurance product is accessible to both existing and new customers, and the premium is as low as 280 Naira monthly over the term of the loan.

The product also allows women to onboard their children, providing cover for hospitalization and other health-related expenses. “If you onboard your child, what that means is that when your child is sick and you have to stay over in the hospital, you will have a cover to the maximum of about 15 days in a year for the lowest bottom of the pyramid,” Oladoyinbo explained. She added that the partnership with Turaco and Leadway Insurance will help attract more customers and retain existing ones, while also providing value to customers.

The partnership is also expected to contribute to the growth and development of the microinsurance industry in Nigeria. By providing credit life insurance to market women, ASA International and Turaco are helping to reduce the financial risks faced by these women and their families. This will enable them to invest in their businesses and improve their overall well-being.

Andrew Amedu, Executive Director of Operations at ASA Microfinance Bank, explained that the ASHA Life Care product is not a standard loan product but an embedded service offering customers added value beyond loans. He noted that it provides comprehensive coverage as an enhanced credit life insurance. ” Credit life provides reimbursement for hospital stays, compensation for loss of business assets, and financial support to the family in case of the customer’s death.”

When asked about the acceptance of the product, Amedu said, “It’s been massive. Because before now, we had done a mini survey to assess clients’ willingness to take this kind of service.”

Also speaking at the event, Agboola Shalewa, a long-standing customer with the bank at its Agege branch said it has been a great experience engaging with ASHA microfinance bank for the past 15 years. “I and other market women have accessed as much as five-million-naira loan from the bank with an easy repayment plan and very low interest rate that makes it very convenient to pay back,” Shalewa said.

Cedrick Todwell, Director of Business Development, Turaco Group said Turaco, Africa’s leading inclusive microinsurance provider, is expanding into Nigeria through ASHA Life Care, in partnership with ASHA Microfinance Bank and Leadway. With ASHA’s grassroots reach and focus on women entrepreneurs, over 150,000 borrowers will now access automatic insurance cover embedded in their loans.

“For just NGN 280.00 families are protected against illness, loss of a breadwinner, and business disruption with benefits of up to NGN 1 million. Claims are filed via WhatsApp, verified with AI, and paid out within 12 hours, making insurance simple, affordable, and accessible. This partnership demonstrates practical financial inclusion designed around the real needs of Nigerian entrepreneurs,” Todwell added.