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01 May, 2007
Nyala Insurance has joined the potentially lucrative business of the travel market, largely eyeing the prospective profits Ethiopians in the Diaspora could bring to its business. Members of the company's top management have launched a new product on Friday, April 27, 2007, at the Sheraton, adding what they call is "Y2000TI" to the list of 30 policies they offer to the market.
It is a policy clients can buy whenever they travel overseas in order to cover their medical expenses while there. This is particularly important for travellers to the Schengen States where Embassies of the respective countries require applicants to have travel insurance in order to be granted visas. Last year alone, 13,000 Ethiopians have travelled to these countries, their health insurance being covered by firms such as the state owned Ethiopian Insurance Corporation (EIC), and Nib Insurance.
Nyala is the latest company to have entered this market after striking a deal with the Spanish reinsurance and service company, Mapfre Asistencia.
Established as a subsidiary company of Corporacion Mapfre in 1989, it is a company with a market presence in 66 countries and insures 60 million people. Its consolidated revenue for last year was 477.75 million Euros (5.98 billion Br), of which 30pc was generated from its home base, Spain.
Lately expanding its roots in Africa, Mapfre gave Nyala the opportunity to stretch its coverage, not only to travellers from Ethiopia, but also to the huge market in the Diaspora.
"We look forward to serve Ethiopians in the Diaspora who will be coming to stay for the Millennium celebration," said Eyob Meherette, general manager of Nyala Insurance.
Nahu-Senay Araya, CEO of the firm, told those invited to the launch that Y2000TI is unique because it is not limited to a policy that covers travellers for emergency medical expenses when hospitalised while abroad. It also covers emergency repatriation and the repatriation of deceased, emergency dental care, baggage loss or delay, travel delay, legal defence, advance of funds, as well as the reunion or repatriation of family members travelling with the insured.
"This is a special package for Africa," George Addae, manager at CDH Insurance, a Ghanaian based insurance firm that has entered into a similar deal with Mapfre, told The Daily Graphic.
The company covers up to 50,000 Euros (628,000 Birr) for hospitalisation while abroad, an amount reduced to 30,000 Euros (377,000 Birr) for Schengen States as it is required by Europe. In the cases of repatriation after accidents or the deceased, Nyala offers unlimited coverage.
"This new product is unique in its worldwide coverage, benefit and affordability," said Nahu-Senay.
He described the 250 Br premiums a traveller pays for 10 days coverage as "the lowest premium available on the market".
Nyala gives the new service in many of its 29 branches across the country and in seven to eight braches in the capital. The new product is yet an addition to the 17 portfolios it has, which generated a total of 53.7 million Br until 2006. Motor insurance claims close to 46pc of this operational income.
Established in 1995, with a capital of 20 million Br, Nyala remained profitable in the past nine years, having a cumulative profit of 67.8 million Br, according to its latest annual report.
By Tamrat G. Giorgis - Fortune Staff Writer