Fish-Farming : The Drivers of Success for Blue Economy Across Africa
Innovation in Africa, drivers, trends and what the future might just … · 2016-10-28 ·...
Transcript of Innovation in Africa, drivers, trends and what the future might just … · 2016-10-28 ·...
Innovation in Africa, drivers, trends and
what the future might just look like
October 2016
Greg Becker – Business Development Actuary
Innovation in Africa
1.Are we innovative?
2.Drivers of innovation
3.Market trends and
4.What the future might
just look like…
Where are we going?
http://news.antiwar.com/wp-content/uploads/2011/10/africa.jpg 2
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 - Ghana, Survey Results
Munich Re's Life Insurance Survey 2016 – East Africa, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results 3
Are we innovative?
28/10/2016 4
The respondents rate different parts of Africa as having
different levels of Innovation
5
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 - Ghana, Survey Results
Munich Re's Life Insurance Survey 2016 – East Africa, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
Southern Africa was deemed to be the most innovative:
is this just patriotism?
6 http://www.google.de/imgres?imgurl=https%3A%2F%2Fupload.wikimedia.org%2Fwikipedia%2Fcommons%2Fd%2Fd0%2FBlankMap-World-1ce.png&imgrefurl=https%3A%2F%2Fcommons.wikimedia.org%2Fwiki%2FFile%3ABlankMap-World-
1ce.png&h=742&w=1425&tbnid=x4hQBgvPCzyWfM%3A&docid=yA7A-644eSHe7M&ei=DS_8VefYIsPnUs2eqPgC&tbm=isch&iact=rc&uact=3&dur=441&page=1&start=0&ndsp=12&ved=0CDwQrQMwCWoVChMIp5Pjp_SAyAIVw7MUCh1NDwov
6%
7%
2%
11% 14%
46%
6% 8%
Critical
Illness
Moses &
Prophet
Discovery
and Vitality
Comparethemarket.com
Munich Re's Life Insurance Survey 2015, Survey Results
UK Actuarial
Convention
Mobile
Money and
distribution
The drivers of insurance innovation in Africa
28/10/2016 7
Diverse environments are fertile ground
• Wide range of socio-economic classes
• Limited public sector safety net
• Inflation, the threat of capital erosion, currency volatility Economic
• South Africa’s SAM vs Solvency II – cutting edge
• At times, less stifling regulation, e.g. data privacy Legal
• Life expectancy and HIV/AIDS
• Longevity, fertility, and the population pyramid
• Family wide solidarity
Demographic & social
Diverse environments are fertile ground
9
• Illiterate really means illiterate
• Financially illiterate
• Unbanked Education
• Near the mobile money gurus
• Newish companies with newish technology
• Internet access Technological
• Entrepreneurial leadership
• Greater desire to find a solution
• Global best practice in many areas
Competitive environment
What happened to the population pyramid?
http://ichef-1.bbci.co.uk/news/624/media/images/72577000/gif/_72577945_population_pyramids_624.gif
With low penetration rates, there is opportunity…
…or is there?
11 Finmark Trust http://www.finmark.org.za/wp-content/uploads/2016/08/gender-and-financial-inclusion.pdf
Financial inclusion has a way to go…
12 Finmark Trust http://www.finmark.org.za/wp-content/uploads/2016/08/gender-and-financial-inclusion.pdf
Trends
28/10/2016 13
What is your employers biggest challenge?
14
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 - Ghana, Survey Results
Munich Re's Life Insurance Survey 2016 – East Africa, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
Where do you think the company you work for will
spend the most effort over the coming year?
15
* e.g. by reducing underwriting complexity from the point of view of the customer
Customer centric initiatives (customer service in combination with simplifying the
sales process) are seen to be the solution
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 - Ghana, Survey Results
Munich Re's Life Insurance Survey 2016 – East Africa, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
What is the insurance industry’s biggest challenge?
16
Customer respect and meeting customer needs and lowering costs!
Straight Through Processing
Point Of Sale
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 - Ghana, Survey Results
Munich Re's Life Insurance Survey 2016 – East Africa, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
All companies and products compete on all dimensions
all of the time. What product aspect do you think is the
best area in which your employer competes?
17 Munich Re's Life Insurance Survey 2016 – East Africa, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
Different regions see the future of distribution differently
18
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 - Ghana, Survey Results
Munich Re's Life Insurance Survey 2016 – East Africa, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
What the future might just look like…
28/10/2016 19
Is insurance penetration going to increase?
20
South Africa
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
Insurance penetration is very low in Africa
Marginal growth off a low base is not much of
a future
Fighting over the pie or growing the pie?
21 Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
Who is going to catch the fish in the sea?
Putting some Kenyan Stats into perspective…
22
Population
Adults Under 15
Under 15
with phone
Adult
With phone
No phone
No phone
Inside has a mobile
money account
Inside has a mobile money
account and buys data
Mortgage
Reminds me of this….
23
Have you heard of USSD?
24
Dial
*120*842*SASA#
Is the future mobile?
25
If banks are replaced by mobile money, will bancassurance become m-surrance?
Munich Re's Life Insurance Survey 2015, Survey Results
Munich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Preliminary Survey Results
Dial
*120*842*SASA#
South Africa
26
Mobile money: the new starting point for financial
matters? The new bancassurance customer touch point?
Africa is the Mobile Money leader Financial inclusion is a priority in Africa
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Financial_Inclusion_in_Africa.pdf
Munich Re's Life Insurance Survey 2015, Survey Results
*120*842*SASA#
27
Registered number of Mobile Money Accounts has
been growing rapidly
Share of mobile money accounts by
country over the period 2006-2014
12 out of the largest 17
http://data.imf.org/?sk=beadea8c-42be-472e-8690-9af03ffc23d1&sId=1390030109571
Munich Re's Life Insurance Survey 2015, Survey Results
*120*842*SASA#
Mobile Payments: The tipping point has not yet come,
but we are nearing it fast in many African markets
28 http://mobilereadiness.mastercard.com/the-index/
Kenya
(40.4
)
Nig
eria (3
1.3
)
Score is a combination of
• person to person (P2P)
• mobile e-commerce (m-commerce), and
• mobile payments at the point of sale (POS)
A score of 100 means that mobile devices have
completely replaced plastic cards
*120*842*SASA#
Mobile Insurance is already on it’s way
29 http://gsmamobileeconomy.com/global/GSMA_Global_Mobile_Economy_Report_2015.pdf
*120*842*SASA#
Conclusion
Africa is not one place
31
Hans Rosling makes the point well in a series of TED talks
We can break out the answers for the South African
survey, and nobody is worried about keeping up with
the competition
32 Munich Re's Life Insurance Survey 2015, Survey Results
There is a progression from internet banking to mobile
banking to electronic money… What about Bitcoins?
33
Who would have said
they had used internet
banking 10 years ago?
Munich Re's Life Insurance Survey 2015, Survey Results
Remember that predictions can easily be way wrong
https://en.wikipedia.org/wiki/Bill_Gates
“We always
overestimate the
change that will occur
in the next two years
and underestimate
the change that will
occur in the next ten.
Don't let yourself be
lulled into inaction.”
Questions, comments or any future survey question suggestions?