NEW YORK, Oct. 26 (Korea Bizwire) — A new partnership is riding to the rescue of would-be motorbike owners who have been unable to purchase a bike in the past due to poor credit ratings.
Micro Insurance Company (MIC), which specializes in offering custom insurance solutions, has teamed up with CrediOrbe to create an innovative insurance alternative for people seeking a loan to buy a motorbike.
Colombian motorcycle credit business, CrediOrbe, was receiving tens of thousands of calls a month from individuals looking for a loan, but was only able to offer financing to less than 4% of these customers. The reason is because the remaining callers failed credit checks, as many of these people work in the informal sector, without a regular paycheck.
As a result, MIC partnered with CrediOrbe to create an insurance product that would also provide a solution to those who were walking away empty handed. CrediOrbe’s investors launched Foriu – a new business that offers an insurance alternative for people who want to buy a motorbike but are refused a loan by CrediOrbe. These affordable policies not only provide customers with a great insurance product, but also help individuals to build a credit history. Thus, if in a few months’ time they still want a loan to purchase a motorbike, they can go back to CrediOrbe and show a positive track record of making payments on time, and get approved.
Foriu is the partner of CrediOrbe offering these affordable insurance policies that are designed and created by MIC. With premiums starting from as little as $2 a month, the policy is within reach of most CrediOrbe customers in Colombia.
Richard Leftley, EVP of Micro Insurance Company, says:
|“With CrediOrbe unable to offer motorcycle loans to many thousands of people every month, we looked at creating a solution. We explored what other insurance products could be sold to people who didn’t secure motorbike financing. The result is Foriu. Now, instead of being offered nothing, callers to CrediOrbe are instead guided in the right direction. As an alternative to a motorbike loan, they can sign up for a really great insurance policy which, in time, will lead them to eventually securing the loan they were initially after.”|
Mariana Gallego, Commercial Manager and Digital Transformation of Foriu, adds:
|“We see this as a win, win, win! The company gets to provide additional financial products to our clients, grow our insurance distribution arm, and clients get a great insurance product that was not previously available in Colombia. They also start to build credit which they can use in the future to purchase a motorbike and fulfill their dreams.”|
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About Micro Insurance Company (MIC):
Micro Insurance Company (MIC) is the world’s first end-to-end digital microinsurance platform that combines reinsurance capacity, in-country insurance licenses, world-class distribution, and market-leading AI functionality. Our global insurance platform delivers technology, underwriting, policy management, and distribution to platforms, micro and small businesses, and to the four billion people on the planet who are currently unserved. Whereas most insurtechs seek to improve existing monoline products and markets, we follow straight through processing to create highly relevant insurance products at a very low cost.
CrediOrbe is a fintech company that was born in Colombia with the purpose of transforming the quality of life of millions of Colombians, through two and three-wheeled vehicles. Under one premise: a motorcycle has the ability to transform reality and improve the quality of life of millions of families, achieving with it: having easy and comfortable transportation, saving time, improving the home economy and achieving new achievements by generating income with his motorcycle.
Source: Micro Insurance Company via GLOBE NEWSWIRE