OLD MUTUAL

MOBILE INSURANCE IN

AFRICA

MANAGING INTERNAL AND

EXTERNAL STAKEHOLDERS WHILE DELIVERING INNOVATION

IN THE MARKET

DAVID O’BRIEN

CUSTOMER ENGAGEMENT AND DIGITAL

OLD MUTUAL 2

mobile is changing customer expectations

OLD MUTUAL 3 Source: GSMA Intelligence, KPMG Africa

HAVE A MOBILE PHONE

100

HAS INSURANCE 1

FOR EVERY

31 AFRICANS

BUT ONLY

OLD MUTUAL 4

mobile solution

mobile strategy

digital strategy

mobile is an enabler

customer value

proposition

business strategy

business vision

customer need

OLD MUTUAL

THE INSURANCE OPPORTUNITY

5

0%

5%

10%

15%

20%

25%

30%

35%

2013

% Mobile Connections % Insurance Penetration

IN AFRICA, MOBILE NETWORK OPERATORS

CAN ADDRESS A DISTRIBUTION GAP IN THE INSURANCE SECTOR

Distribution Reach

Affordability

Understanding

Familiarity

5

OLD MUTUAL 6

where are we going

OLD MUTUAL

THE JOINT OPPORTUNITY

Reduces Churn

Encourages Preferred Customer Behaviour

Supports ARPU

Diversifies Revenue Streams

Build Deeper More Meaningful

Relationships

Insurance is a strong

incentive.

The perceived value of

the insurance benefit is

far greater than the cost

Churn Reduction 10-25%

Yu Mobile in Kenya

reported a decrease in

Churn by 20% with

insurance incentive.

7

OLD MUTUAL 8

the mobile capability needs two components

simple mobile-ready prepaid insurance admin platform

universal mobile interface

OLD MUTUAL 9

low cost scalable

integrated with

mobile app

platform

designed for

simple product

mobile admin platform should be fit for purpose

OLD MUTUAL

[Swaziland]

OLD MUTUAL

Nigeria

Nam

Bt

Kenya

Land locked country approx.

17000 sq.km

Population = 1 million

GDP per capita = US$ 3,034.22

(2013)

Only one Mobile service

provider (MTN Swaziland)

MTN Swaziland has 800k

customers, 250k registered

Mobile money Users

11

THE KINGDOM OF SWAZILAND

OLD MUTUAL 12

OLD MUTUAL 13

OLD MUTUAL

CREATING INTERNAL AWARENESS

PHASE 1

• INTERNAL EMAILERS

• FLYERS

•AMICUS

•MTN CALL CENTER

14

14

OLD MUTUAL

EXTERNAL CAMPAIGN

15

OLD MUTUAL 16

Language – ARPU vs. APE

Risk Tolerance – Insurers practiced at managing risk vs.

MNO’s attitude to the unknown

Scale – MNO revenues dwarf insurance revenues

Partnership Alignment – Finding the right long term

recipe

Identifying stakeholders to be aligned – internal and

external

Challenges

OLD MUTUAL 17

Leadership – Joint executive buy-in is essential

Alignment – Middle management need to be bought

into the benefits of the model

Sit down – Arrange regular joint team meetings

Practical challenges – Be prepared for unexpected

obstacles

Sell the story – Create the rallying call through regular

communications and updates

Learnings

OLD MUTUAL 18

think differently

simple – mobile moments

mobile requires us all to

customer is the expert minimum viable product