“At least 40% of all business will die in the

next 10 years…if they don’t figure out how

to change their entire company to

accommodate new technologies”

– John Chambers, Executive Chairmen, Cisco System

Digitalization in

Inclusive InsuranceQueenie Chow

Digitalization:

inclusive insurance

Key trends

AGENDA

The case of

digital insurance disruption

Fast growing trend of mobile insurance

in emerging markets

as at 2015

Estimated Market Potential

APPROXIMATELY 1.5-3.0 BILLION PEOPLE

Source: Inclusivity Solutions “Digital insurance opportunity in emerging markets”

ESIMATED TIME TO INSURE 1M LIVES:

1 YEAR on mobile operations and

40 YEARS on typical insurance market

Source: Inclusivity Solutions “Digital insurance opportunity in emerging markets”

Penetration in Emerging Markets

Insurance Coverage

2-15%

Mobile Subscribers

>45%

Mature insurance markets

2-4%

Emerging insurance markets

10-12%

Mobile insurance

100%

Annual Growth Rates

Around the world, over 61 million policies issued via mobile insurance,

Majority of people have never experienced insurance before.

Source: Inclusivity Solutions “Digital insurance opportunity in emerging markets”

Source: GSMA ”Spotlight on mobile enabled microinsurance industry 2017”

― Try before you buy

Free to Paid Model

20+ services launched

50 million customers reached

Telecom companies pay for free insurance for customers

in order to gain loyalty and increase revenue from

customers’ phone spending.

Pros

▪ Scale and marketing

▪ Alignment of interest

▪ User value proposition

Cons

▪ Limited product lifespan

▪ Telecom culture

Ghana Mobile Insurance

― Bundling Value Added Services with insurance

VAS Bundle Model

10+ services launched

8 million customers reached

Typical bundling of products could include hospital cash

insurance, telemedicine, discounts on drugs and health

tips.

Pros

▪ Customer value

▪ Payment method

Cons

▪ Product complexity

Telenor's first comprehensive mobile-based health insurance

Tonic, m-health in Bangladesh

Weather-index microinsurance partnering with seed company

Kilimo Salama in Kenya

Why will MNO (Mobile Network Operators) get on board with mobile insurance?

WHAT’S IN IT FOR TELECOM?

ARPU uplift

(6-15%)

Churn reduction

(10-25%)

Direct revenue from

paid products

New customer

acquisition

Competitive

differentiation

Customer

stickiness

Why does customers welcome it?

Cost Trust Access Understanding

DEVELOPMENT OF

MEANINGFUL PRODUCT

TARGETING

AUDIENCECREATING DEMAND

SELLING INSURANCE

IN A NEW WAY

Challenges with implementing mobile

insurance initiatives

What is the context for inclusive insurance?

Reality is no one wakes

up thinking about buying

insurance…

Challenges of Inclusive Insurance

Minimal trust “What if nothing

happens?”

Low

awareness

Limited spare

cash-flow

Complex and

intangible product

DEMAND FOR MASS-MARKET INSURANCE VIA

DIGITAL CHANNELS?

HOW DO WE UNLOCK THE

Lessons learnt

Providing client value is good business

Client value is key

Simplicity

Start simple with partial, single, mandatory

cover.

Accessibility

Boost access and understanding.

Client value

Ensure great client experience through

claims and servicing.

Complementary

Offer complementary solutions along with

other risk management services, as it rarely

covers the full costs of a loss event.

If a picture is worth a thousand words, a prototype is worth a thousand pictures.

Rapid Prototyping

“Don’t be a know-it-all;

be a LEARN-IT-ALL.”

What’s next?

01. QUICK SPEED

Speed of digital ability and its operating model which

caters for customer demand is critical. A self-service

through the internet is now cited as one of the most

important channels.

02. VALUE-ADDED SERVICES

The value-added services that new digital

technologies enable not only increase customer touch

points but also benefit the insurers financial metrics.

Key trends in digital agility

Reflecting on digital agility

Key innovations in Insure Tech

Smart home

ecosystem products

Speech

recognition

Telematics

Peer to peer

platforms

Blockchain technologies

Robotic process

automation

Smart watches

or wearables.

Lifestyle apps,

Queenie Chow

Thank you!