Paper

Mobile Phones and Microinsurance

Exploring best practices for implementing mobile-based microinsurance
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This paper describes good practices and lessons for microinsurance providers to consider when implementing mobile-based microinsurance in order to grasp the opportunities offered by mobile phones to enhance scale and increase efficiency. The analysis is based on a review of literature and 13 insurance schemes that are using mobile phones in some capacity. Key lessons for insurers include:

  • Understand why and how they want to leverage the mobile phone given that this tool is not a ‘silver bullet for microinsurance;
  • Match products to the maturity of the market;
  • Segment client data to design customized products that target specific populations;
  • Weigh benefits of airtime vs. mobile money for premium payments, and of automatic premium deductions;
  • Build brand recognition to be visible in the mind of the client to enable development of other distribution channels and products in the future.

 

About this Publication

By Prashad, P., Saunders, D., Dalal, A.
Published