Page 14 - Promising-Starts-in-Mobile-Microinsurance
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PROMISING STARTS IN MOBILE MICROINSURANCE: TIGO SENEGAL & TELENOR PAKISTAN
The results so far
A s of October 2013, just 1.5 years after launch, Tigo Kiiray has registered 13% of its nearly 3 million subscriber GSM base. Over half -
the Kiiray subscribers qualify for insurance cover in any given month by spending the minimum required amount on Tigo’s net
work. Remarkably, about twice as many of these qualifying subscribers opted for the paid premium cover as took the free offering.
What benefits have Tigo seen in its first year? Tigo’s Commercial Director Jose Escobar says that Kiiray has brought better than expected
direct revenue and strengthened the brand. The product is fitting nicely with Tigo’s brand strategy, which aims for customers to experience
the “Digital Lifestyle” that Tigo offers with a range of services that they can conveniently access through their mobile phone. Though only a
fraction of Tigo’s core telecom business, Kiiray revenue is comparable to other VAS services, such as ringtones and entertainment.
Bolstered by the success of Kiiray, Tigo Senegal plans to expand its insurance offering in the near future with a paid health insurance
product, leveraging Kiiray’s customer base as a starting point.
DID NOT QUALITY QUALIFIELD FOR
FOR COVER (48%) COVER (52%)
DID NOT QUALIFY FOR CO DID NOT QUALIFY FOR C
PAID FOR EXTRA COVER DID NOT PAID FOR EXTRA
COVER (67%)
DID NOT QUALIFY FOR COVER
DID NOT PAID FOR EXTRA COVER DID NOT PAY FOR
EXTRA COVER (33%)
Figure 5: Tigo Kiiray subscriber base, October 2013
PART 2
INSURANCE AS A
TELECOM STRATEGY:
TELENOR & MICROENSURE
12
The results so far
A s of October 2013, just 1.5 years after launch, Tigo Kiiray has registered 13% of its nearly 3 million subscriber GSM base. Over half -
the Kiiray subscribers qualify for insurance cover in any given month by spending the minimum required amount on Tigo’s net
work. Remarkably, about twice as many of these qualifying subscribers opted for the paid premium cover as took the free offering.
What benefits have Tigo seen in its first year? Tigo’s Commercial Director Jose Escobar says that Kiiray has brought better than expected
direct revenue and strengthened the brand. The product is fitting nicely with Tigo’s brand strategy, which aims for customers to experience
the “Digital Lifestyle” that Tigo offers with a range of services that they can conveniently access through their mobile phone. Though only a
fraction of Tigo’s core telecom business, Kiiray revenue is comparable to other VAS services, such as ringtones and entertainment.
Bolstered by the success of Kiiray, Tigo Senegal plans to expand its insurance offering in the near future with a paid health insurance
product, leveraging Kiiray’s customer base as a starting point.
DID NOT QUALITY QUALIFIELD FOR
FOR COVER (48%) COVER (52%)
DID NOT QUALIFY FOR CO DID NOT QUALIFY FOR C
PAID FOR EXTRA COVER DID NOT PAID FOR EXTRA
COVER (67%)
DID NOT QUALIFY FOR COVER
DID NOT PAID FOR EXTRA COVER DID NOT PAY FOR
EXTRA COVER (33%)
Figure 5: Tigo Kiiray subscriber base, October 2013
PART 2
INSURANCE AS A
TELECOM STRATEGY:
TELENOR & MICROENSURE
12
