Download - Mobile Insurance in Africa
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