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INSURANCE ON MOBILE PLATFORM
Date: April 2015
Venue: Hyatt Regency, Casablanca, Morocco
Presented by: Mr. Patrick Tumbo
WWW.JUBILEEINSURANCE.COM
USE OF MOBILE PLATFORM
Little more than a decade ago, mobile technology at insurance
companies was limited to mobile devices for executives. Today it
is for whoever can – from the youth to the old folk.
The use of technology has put an array of mobile technologies
and services into the hands of both insurers and their
policyholders, changing the way they interact and shining a
spotlight on customer service.
Mobile is enabling insurers to reach current and potential
customers in new ways with new offerings. Not only can mobile
make communication more convenient and frequent, it now
supports a new paradigm.
USE OF MOBILE PLATFORM
Insurers can become trusted partners that provide policyholders
with valuable new services that help them identify and assess
risks and take action to protect them based on their individual
needs.
As mobile technologies continue to be more and more widely
adopted, they are also improving the efficiency and
responsiveness of employees at insurance companies and their
many partner companies.
Kenya has the highest rate of mobile penetration in East Africa
and mobiles have become one of many the channels that
insurers must support.
MOBILE MONEY PENETRATION IN
KENYA
As at Sept 2014, Kenya has 32.2 million mobile
subscribers, up from 31.3 million in Dec 2013.
MOBILE PLATFORM PROVIDERS
1. Safaricom is the largest mobile network in Kenya with 67.8%
market share and 21.2 million mobile subscribers.
2. Airtel is the second largest mobile network in Kenya with
16.5% market share and 5.2 million mobile subscribers.
3. YU is the third largest mobile network in Kenya with 8%
market share and 2.6 million mobile subscribers.
4. Orange (Telkom Kenya) is the fourth largest mobile
network in Kenya with 7.7% market share and 2.3 million
mobile subscribers.
MOBILE MONEY MARKET IN KENYA
For Kenyan consumers and businesses, mobile money is rapidly becoming
the payment channel of choice.
Mobile capabilities are vital for insurers seeking to serve customers in the
channel of their choice, whether for research, purchases, supplying policy
information changes or handling billing, payment issues and claims
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MOBILE MONEY MARKET IN KENYA
Growth trends show that smartphone penetration in Africa will double within the
next three or four years.
This is hard to discount if you consider the ever increasing presence of mobile
device distributors on the continent and the falling prices on entry level to midrange devices.
Kenya continued to enjoy fast penetration of mobile money in the country with
its impact felt across all sectors of the economy.
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MOBILE MONEY MARKET IN KENYA
Kenya is the highest ranked mobile money country in the world,
followed by Tanzania.
The pioneering mobile-based money transfer service (MPESA)
launched in Kenya in 2007 by telecoms company Safaricom, has
become internationally renowned.
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Safaricom’s M-PESA and Competition
Today 15 million subscribers use the M-Pesa service in Kenya,
transacting daily amounts estimated to be close to 60% of Kenya’s GDP.
In April 2014, the Communications Commission of Kenya licensed three
new Mobile Virtual Network Operators (MVNOs).
These operators allow companies to provide mobile money services
without building new mobile infrastructure by working with existing
mobile network operators.
Equity Bank (one of Kenya’s largest banks) was one of the three to
receive the license to be hosted by Airtel Kenya. This is expected to soon
increase competition in the mobile money market.
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INDUSTRY USE OF MOBILE PLATFORM
i) Banking.
This is the leading sector in the economy for mobile money
transactions with a fast ascending trend in number of customers using
mobile banking.
Equity bank is the leading bank in Kenya under the mobile banking
channel with other banks showing similar fast growing trends for
mobile banking usage.
ii) Insurance
The proliferation of mobile and other remote devices is rapidly
reshaping the insurer-customer relationship, making it more personal
and enabling insurers in Kenya to be more “one-on-one” with their
clients.
Today, 80% of clients in Kenya reach insurers through brokers and
agents. In three years’ time, mobile, online portals and social media
will take on much larger roles with mobile expected to take up the
larger piece of the pie.
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INDUSTRY USE OF MOBILE PLATFORM
iii) Consumer Goods Trading
Mobile money has further made it convenient and easy for Kenyans to
buy and have goods delivered across the country. Companies in the
Kenyan market such as Jumia, Cheki and OLX have spread their
tentacles across the region, getting mobile and internet
The great advertising campaigns that these companies have conducted
over traditional media, has educated the public on e-trading and this is
expected to boost e-commerce in Kenya.
iv) Other Trades
Payment of TV subscriptions, tickets booking for travel & cinema,
utility bill payments, municipal county payments and many more
mobile money services available in the Kenyan market.
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KENYA INSURERS USE OF MOBILE
PLATFORM
1. Jubilee - Tumaini ya Jamii
Policy holders pay Premiums through M-Pesa annually for a cover for death and
disability following an accident.
2. Jubilee - Jubilee Msafiri
This is medical cover, covers travellers on long distance bus journeys within East
Africa and is part the travel tickets.
In case of an accident, Kenya Red Cross Society evacuates passengers to the
nearest accredited hospitals and Jubilee pays the bill.
3. Jubilee - Baada ya Campo
This is aLife insurance policy that enables university and college students build a
fund over a period of 4 to 6 years depending on the duration of the course.
In addition it provides a savings opportunity that ensures the student enjoys a life
assurance cover equivalent to the sum assured on graduation or in the event of
untimely death
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KENYA INSURERS USE MOBILE
PLATFORM
4. BRITAM - Linda Jamii
This micro-insurance health cover is established through partners Britam,
Safaricom Limited and Changamka Micro-insurance. Premiums are paid in
installments through M-Pesa
5. APA – Kopa Bima
This personal accident cover is available for mobile phone subscribers,
both the Airtel and Safaricom networks with an annual cover
6. CIC - M-Bima Jijenge Savings Plan
It is a 12-year savings plan with monthly minimum installment , minimum
life cover and an additional family insurance cover of US$1000 payable on
death of a listed family member. tworks with an annual cover
7. Jubilee YUcover
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MOBILE PENETRATION IN MOROCCO
Morocco has 43.38 million mobile subscribers at the end of March 2014,
9.78 percent up compared to 2013, according to telecommunications
regulator in Morocco. The mobile penetration rate grew to around 132%
from 129% over the same period.
The country's mobile market is more developed than its fixed-line
market
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MOBILE PENETRATION IN MOROCCO
Morocco's telecom market is one of the most developed markets in
Africa. It has one of the highest overall telecom penetration rates
compared to other countries in the region.
The telecom sector offers plenty of scope for growth, primarily because
of the government's focus on increasing network coverage,
encouraging e-commerce and adopting new technologies.
Morocco's mobile sector is there ripe for mobile money and
insurance business.
Besides voice services, messaging is also very popular and successful
and Morocco has one of the highest SMS rates across the countries of
North Africa.
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FUTURE OF MOBILE PLATFORM FOR
INSURANCE INDUSTRY
Alternative way to for insurance customers
connected – customer experience at all times
to
stay
Cost effective method of transacting insurance business acquisition & administration costs
Alternative channel to access the mass market instead of
traditional brokers & agents
Flexible premium collection and claims payment platform
directly with the customers
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