Mastercard has announced a strategic collaboration with Hillcroft (mTek), an innovative insurtech company, to launch embedded insurance solutions across East Africa. This partnership marks Mastercard’s entry into the embedded insurance space in the region and is designed to directly integrate insurance products into its consumer and SME card offerings. The initiative represents a significant step forward in bridging the insurance gap, where penetration has historically remained below 3%.
By embedding insurance into routine payment transactions, the collaboration seeks to eliminate the traditional barriers that have limited access, including high upfront costs, complex application processes, and limited distribution networks. This model ensures that individuals and businesses can access affordable coverage seamlessly during daily financial interactions, from purchasing everyday goods to selling agricultural produce. It is an approach aimed at building resilience and fostering economic growth across East Africa.
Shehryar Ali, Senior Vice President and Country Manager for East Africa and Indian Ocean Islands at Mastercard, emphasized that the collaboration demonstrates Mastercard’s commitment to unlocking financial inclusion. He noted that embedding protection into the payment experience will allow millions of people and businesses to access cover effortlessly, empowering communities and supporting long-term stability.
For small and medium-sized enterprises (SMEs), which represent over 90% of businesses in East Africa and play a pivotal role in GDP and employment, this development provides a vital opportunity. SMEs have long faced challenges in accessing affordable and reliable insurance, yet with insurance embedded at the point of transaction, they can now manage risks more effectively and strengthen their resilience. Hillcroft (mTek) will provide direct API integration with underwriters, technical platform support, and work closely with insurers to co-develop innovative products tailored for this market.
Bente Krogmann, CEO of Hillcroft (mTek), reiterated that the insurtech’s mission is to reimagine access to insurance in Africa. Collaborating with Mastercard allows the company to scale its technology and expand its reach to millions of consumers and SMEs via trusted financial and telecom channels. Together, the collaboration not only enhances consumer protection but also creates a broader ecosystem for financial institutions, insurers, and telecom providers. Ultimately, it sets a new benchmark for how insurance can be delivered across Africa and beyond, laying the foundation for a scalable model of inclusion.
