Cross-industry partnerships can create innovative, digitally-based business models
BIMA, a microinsurance specialist partnered with Tigo, a telecom service provider, to launch a “freemium” microinsurance service in Africa. BIMA capitalises on the mobile microinsurance opportunity by optimising the process of delivering and selling insurance through mobile phones to the underserved. BIMA allows mobile operators to deliver financial support to their low-income subscribers in their time of need without bearing any of the risk.
Mobile-based insurance schemes have the potential to alter the life insurance market in a country where insurance penetration is very low. The majority of customers who have signed up for the country’s mobile insurance services have never held a policy previously. The benefits are equally appealing for mobile operators as the microinsurance products enable operators to increase their ARPU, loyalty and customer acquisition and offer them a new source of revenue.
Microfinance distribution through a telecommunications channel is seen as one of the most successful alternative distribution efforts and is being adopted by a lot of providers in different parts of the world. It’s interesting to see how cross-industry partnership results in innovative business model that brings value to customers.
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