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PROMISING STARTS IN MOBILE MICROINSURANCE: TIGO SENEGAL & TELENOR PAKISTAN INSURANCE AS A TELECOM STRATEGY: TELENOR & MICROENSURE
COMPONENT EASYPAISA KHUSHAAL – INSURANCE TALKSHAWK MOHAFIZ – An evolving product
INSURANCE LINKED TO GSM SPEND
LINKED TO MOBILE MONEY BALANCES
Minimum requirements for cover 2,000 rupee (US$19) average monthly balance 200 rupee (US$1.90) monthly spend on Telenor network
strategy: Free to
in Khushaal account
Minimum cover 100,000 rupees (US$950) 20,000 rupees (US$190)
Maximum cover 1 million rupees (US$9,500) and 5,000 rupees (US$47) 100,000 rupees (US$950)
per month for 5 years freemium (and beyond)
Primary sales channel Outbound call centre Outbound call centre, self-enrolment,
service centre locations
Current addressable base 400,000 mobile wallet users 32 million GSM subscribers
“Customers will be willing to pay, but only after they see how the product works.”
Goal of service Recruit mobile wallet users Reduce churn and increase ARPU in GSM base Irfan Khan, Chief Marketing Officer, Telenor Pakistan
W that did not previously exist. Richard Leftley, CEO of MicroEnsure, believes that launching with a paid product would only
Figure 6: Comparison of Telenor Pakistan’s two insurance offerings 16 hy launch with an entirely free product? Telenor and MicroEnsure are laying the groundwork for an insurance market
target the estimated 2% of the population that already buys and understands insurance. By providing a free product with
extremely low barriers to entry (nothing more than a USSD command), they are growing a base of potential insurance customers. Mr.
Leftley terms this approach “priming the pump”.
Telenor and MicroEnsure plan to eventually migrate from a free to freemium model in which customers can pay for add-ons to their
policy. Increased cover, adding family members, and other products such as health, property and mobile phone insurance, are all possi-
bilities. Once Talkshawk Mohafiz has signed up a sufficient number of subscribers, the next task will be to convert them to paid offerings.
Telenor and MicroEnsure believe that any introductory free product must offer simplicity and complete lack of hassle to appeal to a
potentially sceptical subscriber base. Once customers are educated on the benefits of insurance, Telenor and MicroEnsure will be able to
introduce more complex offerings with higher barriers to entry.
16. Minimum and maximum cover for accidental death. Cover amounts are lower for natural death.
16 17
COMPONENT EASYPAISA KHUSHAAL – INSURANCE TALKSHAWK MOHAFIZ – An evolving product
INSURANCE LINKED TO GSM SPEND
LINKED TO MOBILE MONEY BALANCES
Minimum requirements for cover 2,000 rupee (US$19) average monthly balance 200 rupee (US$1.90) monthly spend on Telenor network
strategy: Free to
in Khushaal account
Minimum cover 100,000 rupees (US$950) 20,000 rupees (US$190)
Maximum cover 1 million rupees (US$9,500) and 5,000 rupees (US$47) 100,000 rupees (US$950)
per month for 5 years freemium (and beyond)
Primary sales channel Outbound call centre Outbound call centre, self-enrolment,
service centre locations
Current addressable base 400,000 mobile wallet users 32 million GSM subscribers
“Customers will be willing to pay, but only after they see how the product works.”
Goal of service Recruit mobile wallet users Reduce churn and increase ARPU in GSM base Irfan Khan, Chief Marketing Officer, Telenor Pakistan
W that did not previously exist. Richard Leftley, CEO of MicroEnsure, believes that launching with a paid product would only
Figure 6: Comparison of Telenor Pakistan’s two insurance offerings 16 hy launch with an entirely free product? Telenor and MicroEnsure are laying the groundwork for an insurance market
target the estimated 2% of the population that already buys and understands insurance. By providing a free product with
extremely low barriers to entry (nothing more than a USSD command), they are growing a base of potential insurance customers. Mr.
Leftley terms this approach “priming the pump”.
Telenor and MicroEnsure plan to eventually migrate from a free to freemium model in which customers can pay for add-ons to their
policy. Increased cover, adding family members, and other products such as health, property and mobile phone insurance, are all possi-
bilities. Once Talkshawk Mohafiz has signed up a sufficient number of subscribers, the next task will be to convert them to paid offerings.
Telenor and MicroEnsure believe that any introductory free product must offer simplicity and complete lack of hassle to appeal to a
potentially sceptical subscriber base. Once customers are educated on the benefits of insurance, Telenor and MicroEnsure will be able to
introduce more complex offerings with higher barriers to entry.
16. Minimum and maximum cover for accidental death. Cover amounts are lower for natural death.
16 17
