A new era for mobile insurance distribution

A major transformation that would redefine insurance marketing and product distribution is underway. While efforts by local firms are becoming visible by the day with a recent flag off of mobile distribution between FBN Life and Airtel, offshore firms are seeing huge potential and possibility and in the Nigerian market.

According to the offshore firms, mobile phones have transformed banking in Africa and now they might do the same for insurance. That’s the hope of BIMA, a micron insurance company providing Low price cover via mobile networks to 4 million customers in Africa and Asia, and adding 400,000 new subscribers a month, according to an FT report.

Founded about two year ago, the Swedish company recently announced $4.25 million of new investment from the Mauritius headquartered LeapFrog Investments, which calls itself the world’s largest investor in insurance for emerging market consumers.

Just as Mpesa, launched by Safaricom in Kenya in 2007, made money transfers and deposits available to the masses, the mobile platform could open up a vast, untapped insurance market. Research by Lloyd’s suggests the potential for 1.53 billion new policies among low income consumers globally, should suitable products be made available.

“There is huge demand from consumers for low cost insurance,” says BIMA chief executive Gustaf Agartsson, “but nobody had figured out how to access them yet, according to an FT Report.