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PROMISING STARTS IN MOBILE MICROINSURANCE: TIGO SENEGAL & TELENOR PAKISTAN CONCLUSION: LESSONS AND QUESTIONS FOR THE MOBILE INDUSTRY
Promising early results Conclusion:
L everaging its built-in customer base of 32 million, Talkshawk Mohafiz (the GSM product) raced to almost 400,000 subscribers Lessons and questions
in its first two months of operation. Telenor has managed to acquire subscribers through a few different channels, including an
outbound call centre, its larger retailers, and surprisingly, self-enrolment. Customers have responded to television advertising and
SMS blasts by enrolling themselves through a simple USSD menu. Irfan Khan, CMO of Telenor Pakistan, says the results have exceeded his
expectations. Next, they will focus on rolling out the product to more retailers and expanding product functionality. for the mobile industry
Lessons for new mobile microinsurance operators
What advice might a pioneer in mobile microinsurance offer a new market player? This is what some of them are saying:
“TOP EXECUTIVES NEED TO BELIEVE IN “PARTNER WITH SOMEONE WHO
THE PRODUCT TO MAKE IT WORK” HAS DONE IT BEFORE”
JOSE ESCOBAR ROAR BJÆRUM
COMMERCIAL DIRECTOR, TIGO SENEGAL HEAD OF EASYPAISA, TELENOR PAKISTAN
“BUYING INSURANCE SHOULD BE AS “PRODUCT SIMPLICITY AND
EASY AS BUYING A RINGTONE” WELL-TRAINED AGENTS ARE THE KEY”
RICHARD LEFTLEY PADDY PARTRIDGE
CEO, MICROENSURE COUNTRY MANAGER, BIMA SENEGAL
Organisations considering a mobile microinsurance venture could draw the following lessons from the experiences of Tigo Senegal and
Telenor Pakistan:
1. Start with a radically simple product. Applying product design from the formal financial sector might not work for new insurance
customers unfamiliar with typical product features. Simplicity may be more important than flexibility or functionality.
2. Insurance does not sell itself. Bima devotes the vast majority of its investment in Senegal to a dedicated sales force of roving and
call centre insurance agents. Each insurance policy is sold through a one-on-one interaction with the customer, with the sales agent
taking care to explain the benefits to customers who are unfamiliar with and sometimes sceptical about insurance.
3. Sales quality is paramount. An insurance policy is a long-term relationship between a customer and provider rather than a one-time
transaction. The quality of the initial sale determines the future value of the relationship.
4. Expert partners can speed success. Both Tigo and Telenor have opted for an alliance of equals with their operating partners,
Bima and MicroEnsure. The partners have imported proven models from other markets and operational know-how to get ser-
vices off the ground quickly.
5. Direct revenues take time. Tigo and Telenor have both decided to offer free insurance linked to telecom network loyalty. Today’s mar -
gins may be thin and the benefits indirect, but they are banking on stimulating future demand for paid add-ons and other products.
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Promising early results Conclusion:
L everaging its built-in customer base of 32 million, Talkshawk Mohafiz (the GSM product) raced to almost 400,000 subscribers Lessons and questions
in its first two months of operation. Telenor has managed to acquire subscribers through a few different channels, including an
outbound call centre, its larger retailers, and surprisingly, self-enrolment. Customers have responded to television advertising and
SMS blasts by enrolling themselves through a simple USSD menu. Irfan Khan, CMO of Telenor Pakistan, says the results have exceeded his
expectations. Next, they will focus on rolling out the product to more retailers and expanding product functionality. for the mobile industry
Lessons for new mobile microinsurance operators
What advice might a pioneer in mobile microinsurance offer a new market player? This is what some of them are saying:
“TOP EXECUTIVES NEED TO BELIEVE IN “PARTNER WITH SOMEONE WHO
THE PRODUCT TO MAKE IT WORK” HAS DONE IT BEFORE”
JOSE ESCOBAR ROAR BJÆRUM
COMMERCIAL DIRECTOR, TIGO SENEGAL HEAD OF EASYPAISA, TELENOR PAKISTAN
“BUYING INSURANCE SHOULD BE AS “PRODUCT SIMPLICITY AND
EASY AS BUYING A RINGTONE” WELL-TRAINED AGENTS ARE THE KEY”
RICHARD LEFTLEY PADDY PARTRIDGE
CEO, MICROENSURE COUNTRY MANAGER, BIMA SENEGAL
Organisations considering a mobile microinsurance venture could draw the following lessons from the experiences of Tigo Senegal and
Telenor Pakistan:
1. Start with a radically simple product. Applying product design from the formal financial sector might not work for new insurance
customers unfamiliar with typical product features. Simplicity may be more important than flexibility or functionality.
2. Insurance does not sell itself. Bima devotes the vast majority of its investment in Senegal to a dedicated sales force of roving and
call centre insurance agents. Each insurance policy is sold through a one-on-one interaction with the customer, with the sales agent
taking care to explain the benefits to customers who are unfamiliar with and sometimes sceptical about insurance.
3. Sales quality is paramount. An insurance policy is a long-term relationship between a customer and provider rather than a one-time
transaction. The quality of the initial sale determines the future value of the relationship.
4. Expert partners can speed success. Both Tigo and Telenor have opted for an alliance of equals with their operating partners,
Bima and MicroEnsure. The partners have imported proven models from other markets and operational know-how to get ser-
vices off the ground quickly.
5. Direct revenues take time. Tigo and Telenor have both decided to offer free insurance linked to telecom network loyalty. Today’s mar -
gins may be thin and the benefits indirect, but they are banking on stimulating future demand for paid add-ons and other products.
18 19
