MTN and Hollard Insurance have partnered to pilot mi-Life, a mobile money life insurance service, which they call “a world first”.
The service is being piloted in Ghana via MTN Mobile Money. The new partnership is said to ensure the cost of insurance is dramatically reduced, making it available to a much broader market.
“Mi-Life is designed to meet the growing demand for insurance services across developing markets,” says MTN.
The new service will allow Mobile Money customers the opportunity to manage their insurance via their handsets.
“Customers will be able to submit claims, queries and make their premium payments using their handset,” says Bruno Akpaka, GM of Mobile Money in Ghana.
According to a Lloyds study in 2009, the market for efficient, cheap and simple insurance in developing countries is estimated to be between 1.5 billion and three billion policies.
“The ubiquity of mobile and strength of the MTN brand makes Mobile Money the ideal platform to deliver financial services in Africa,” says MTN.
Jeremy Leach, head of micro-insurance for Hollard, explains: “The opportunity to partner with MTN Mobile Money to develop m-insurance is one of the most exciting initiatives Hollard has been involved in and will transform insurance in the emerging markets - making it relevant for the majority of people whom insurers have ignored.”
Customers will be able to choose an amount of life insurance between 500 - 2 000 Ghanaian cedis (about R2 260-R9 000). The initial mobile insurance product that will be offered will cover funeral costs. The policy covers the principal member and their next of kin.
According to reports, Ghana is just the starting point for mi-Life, and MTN has its sights set on expanding the initiative to other West African countries. There is no word as yet on if, or when, it will come to SA.
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