Yango Group has teamed up with Nib Bank and Nib Insurance to ease the financial strain on drivers by introducing a monthly insurance payment scheme. Under the new arrangement, annual insurance premiums, traditionally paid upfront, can now be settled in instalments, deducted directly from drivers' weekly bonuses. The agreement was signed last week at Nib Bank’s headquarters on Ras Abebe Aregay Street. The deal, involving G2G IT Solutions, Nib Insurance, and Nib Bank, plans to make insurance more accessible to drivers, who have long struggled with the steep annual costs, typically ranging from 20,000 to 30,000 Br. The new payment structure is fully integrated into Yango’s bonus system, removing the barrier of lump-sum premiums. This move comes at a time of mounting pressure on Ethiopia’s insurance industry, particularly motor insurance, which accounts for over 70pc of the market. Rising costs of spare parts and medical treatments have pushed up claim values, eating into profitability. With both the frequency and value of claims climbing, some insurers are reporting losses and struggling to cover payouts from collected premiums. To cushion drivers further, the agreement includes accident support services. If a vehicle is under repair following an accident, Nib Insurance will either provide a replacement vehicle or compensate the driver with the equivalent of their average monthly earnings. The support aims to ensure that drivers maintain mobility and income during downtime. “Once drivers reach an agreement with Yango and Nib Insurance, we will manage the monthly payments on their behalf,” said Tedros Mehari, Chief Technology Officer at G2G IT Solutions. He added that the group’s existing collaboration with Nib Bank, already providing debit services to Yango drivers, puts them in a strong position to execute the new system efficiently. Muluken Demessie, Chief Operating Officer at Nib Bank, reaffirmed the bank’s commitment: “We are ready to deliver full banking support to all parties involved and are developing additional services that will benefit vehicle owners and enrich the partnership.”
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