Social Media for Development: Mobile Financial Services

Peter GrossRegional Director – MicroEnsure Africa

Nairobi, Kenya

Why did Mobile Take Over Africa?

OR

Mobile Financial Services in Africa

Social Impact

Mobile Money

Remittance Nanocredit

Insurance

Insurance Trends

• Traditional insurance on mobile money• Loyalty models: “freemium” insurance• mHealth and mobile risk management tools

Driver to success = Risk is fundamental to my life

Many mobile insurance challenges…No one wakes up in the morning

wanting to buy insurance

Mobile makes a bad product worse

Mobile failures impact markets

Insurance often offers little value

Social Media Amplifies Mistakes

EcoLife: 1.6 million subscribed in 7 months

Product challenges & disputes > cancellation

20% of Zimbabwean adults lost insurance overnight

63% ruled out use of similar products in future

Freemium Example –“3 for Free”• Phase 1 – January 2014

• Phase 2 – March 2015

• Double Cover – pay GHS 1 per month to double your 3 for Free Cover: enjoy up to GHS 5,000 in life, accident cover and GHS 300 hospital cash

• Family Cover – pay GHS 3 per month to double your 3 for Free Cover and give them same

coverage to a loved one

Monthly Recharge Life Cover Accident Cover Hospital Cash

GHS 5 – 9.99 GHS 250 GHS 250 GHS 25

GHS 10 – 19.99 GHS 500 GHS 500 GHS 50

GHS 20 – 49.99 GHS 1,250 GHS 1,250 GHS 100

GHS 50 and up GHS 2,500 GHS 2,500 GHS 150

Freemium Insurance - Nigeria

Freemium Insurance – MNO Impact

3.313.13

2.452.11 2.05

Before Insurance

After Insurance

Freemium Insurance – Social Impact

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Policies

Covered Lives

Enrolled Lives

2014: 12 million in Africa/Asia get their first insurance policies

Conclusion• Mobile insurance on the leading edge of MFS• Mobile forces insurers to be better…• …but only if MNOs see the true source of value

• Regulators must protect against systemic risk…• …while facilitating innovation & soft landings• Public-private partnerships enable scale+impact

Thank You

Peter GrossMicroEnsure Africa

Phone: +254 786 499 100Email: info@microensure.com

Twitter: @microensure