Mobile Phones and Microinsurance

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.