Microloan-insurance bundle launched in Uganda

KAMPALA - Single solutions continue to be inadequate in confronting the prevalent problems of poverty, ill health and insufficient health system capacity worldwide.

The poor need access to an integrated set of financial and health services to have income security and better health.

This is why it is important for Ugandan communities to have access to a multitude of solutions to get out of household poverty.

Thus, the introduction of microloan-insurance scheme in Uganda, will go a long way in mitigating risk and ensuring that subscribers benefit from it, New Vision Online has learnt.

Microfinance institution ASA Uganda has partnered with insurtech firm Turaco to launch the microinsurance product bundled with microloans.

The collaboration, formalised in December 2024 and piloted in May 2025, according to ASA Uganda, aims to bridge Uganda’s financial inclusion gap by offering affordable protection against health emergencies, property loss, and loan defaults. 

Many financial institutions serving the poor have, in recent years, expanded the breadth of services they offer beyond their core credit offerings to include a wider range of savings, insurance, and other products.

Bundling products (delivering multiple products at once) can be a cost-effective distribution strategy as well as a way to differentiate the provider’s offering.

Seated from right: Cedrick Todwell, Director of Business Development at Turaco; Ted Pantone, CEO of Turaco; Rob Keijsers, CEO of ASA International; Machiel Brouwer, Head of Business Development at ASA International.

ASA Uganda, which reportedly has over 160,000 clients and $20.4 million (about shillings 73 billion) loan portfolio, says the product dubbed ASA LifeCare is priced at less than $1 (about shillings 3,600) per month and provides hospital cash benefits for client or family admissions, funeral cover annually, credit life insurance (to settle outstanding loans in case of a borrower’s death) and business asset insurance for small enterprises. 

Reports reaching New Vision Online indicate that a pilot across 133 branches saw 34,150 people enrol in one month, exceeding the 5,000 target, likely due to its affordability in terms of medical cover.  

ASA Uganda chief executive officer Allen Semboze in an interview on July 3, 2025, at his office in Kampala, said: This partnership proves that bundling microloans with insurance drives uptake and trust.

He added that there is a need for simplified product segmentation, staff training, and real-time data sharing with Turaco. 

“We’re democratising financial security,” he said. 

At the launch of the product recently, a female customer said her family received critical hospital cash benefits: ASA LifeCare didn’t just protect my business—it saved my family.”

This partnership is in line with global trends where microfinance institutions collaborate with insurers to expand risk mitigation tools. For Uganda, where 96% lack formal insurance, ASA LifeCare could redefine resilience for low-income households.