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: [email protected]
Twitter: @microensure
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