Distribution and management of insurance via mobile networks, a major inclusion lever in emerging markets.
Mobile-based insurance designates the distribution, underwriting, premium payment and claims settlement of insurance via mobile networks and mobile money, particularly developed in emerging markets where banking rates are low but mobile penetration high. By relying on telecom operators and mobile-money platforms, it bypasses the absence of banking infrastructure and branch networks, radically lowering the distribution and management costs that were the main obstacle to insuring low-income populations. It is an essential lever of microinsurance and index insurance, allowing a multitude of dispersed insureds to be reached for modest premiums. East African and South Asian markets have seen large-scale models emerge. For insurers, mobile transforms the economics of distribution in emerging markets and opens considerable inclusion possibilities, provided there are partnerships with operators and product design suited to the context.
An insured with no bank account can take out and pay for life or health insurance via mobile airtime and mobile money, without ever entering a branch.
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