Your SlideShare is downloading. ×
0
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Enrolment tech webinar consolidated published
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Enrolment tech webinar consolidated published

452

Published on

This is a webcast of a session focused on enrolment which was part of a 2-day (4-5 June 2013) Knowledge Sharing Forum on Technology for Microinsurance organized by the ILO Microinsurance Innovation …

This is a webcast of a session focused on enrolment which was part of a 2-day (4-5 June 2013) Knowledge Sharing Forum on Technology for Microinsurance organized by the ILO Microinsurance Innovation Facility with CGAP Technology Program and Microensure. The session focused on technology solutions, specifically smart cards and mobile phones, and how these solutions are addressing enrolment challenges. Panelists include Pranav Prashad of the Facility, Camilo Tellez of CGAP, Eugene Adogla of Microensure, Sanjay Pande of Amicus Advisory, and Jasmin Suministrado of the Facility as moderator.

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
452
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
33
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Processes involved. Focus on enrollment and bring up examples
  • Transcript

    • 1. 1 Technology: Improving the enrolment experience
    • 2. 2 Technology: Improving the enrolment experience Presenter: Sanjay Pande Director Amicus Advisory Private Ltd Presenter: Pranav Prashad Microinsurance Officer Microinsurance Innovation Facility Presenter: Camilo Tellez CGAP Technology and Business Model Innovation Team Presenter: Eugene Adogla Regional Operations Manager-Africa Microensure Moderator: Jasmin Suministrado Knowledge Officer Microinsurance Innovation Facility 4 June 2013
    • 3. 3 Discussion Flow 1. Challenges in microinsurance enrolment 2. Technologies for enrolment 2.1 Smart cards 2.2 Mobile phones 3. Watch points in implementing technology solutions 4. Concluding thoughts
    • 4. 4 1. The Main Hurdles in Enrolment Identification Infrastructure Education and awareness
    • 5. 5 Challenges in enrolment  Identification/ documentation requirement  Unclear forms- long, time consuming  Complex processes- low awareness  Lack of Interaction: who to ask  Liquidity constraints  irregular income flows  Non synchronous schedules  Prioritisation  TRUST  High costs  Lack of channel and physical infrastructure  Insurance agents  “low prioritisation” of low- income markets  alternative channels (post offices, retailers, banks)  Clients’ understanding Client side Provider side
    • 6. 6 Clients’ needs and technology requirements  Trust and active communication  Does technology enhance or dilute these aspects  Human connection- repeated contact, reminders, physical presence  How well does technology simulate  Relevant locations, timing, interface personnel for interaction  responsiveness  Facilitate and comfortable environment  Relevant processes- clients 'capabilities and limitations  Ease of understanding, transaction and confirmation  Tangible benefits throughout the policy duration  Protection beyond the less frequent event or loss  Facilitate “Value added” services, linked to the product…
    • 7. 7 2.1 Smart card Technology Current popular applications Identity Banking & Financial Services Access control Transportation Telecommunication Healthcare Nos. in circulation: 6.9 bn (Figures for 2012 : Source : Eurosmart-April,13) Telecom : 5.1 Financial Services : 1.2 Government Healthcare : 0.31 Transport : 0.13 Pay TV : 0.13 Others : 0.09
    • 8. 8 Smart card technology: Benefits  Digitisation of base data  De-duplication  On-site Activities : No remote locations  Instant enrolment  Spot data amendment and personalization  Instant printing and issue  Instant uploading addresses transit related issues  Seamless mapping of biometrics and demographics  No mismatch  Instant activation  No waiting to avail of benefits
    • 9. 9 Hardware Laptop with webcam Fingerprints Scanner Smart card Reader Printer Fingerprints Reader Smart card technology: Hardware and software Enrolment Software • Identification, collection of demographics & biometrics • Personalization, printing cards issuance • Data collection, conveyance and management Claims Transactions Software • Identification, admission treatment • Data conveyance and management •Financial transactions Other • data integrity and security
    • 10. 10 Smart card: Enrolment process flow
    • 11. 11 Smart card implementation Pilot project supported by the Microinsurance Innovation Facility  Health Insurance Scheme for handicraft artisans, funded by the Government of India  Project locations: 3 districts in East India  Households Enrolled: 2,768  Hospitals / clinics networked: 44  Claims reported till 19th May, 2013: 1,950  Benefits afforded: Outpatient and inpatient care  Focus: Outpatient care National Health Insurance Scheme ( RSBY)  Health Insurance scheme for the population below the Poverty Line in India  Locations: 26 State, about 525 districts  Households enrolled: 35 million  Hospitals networked: over 9,500  Claims reported: 5.2 million  Benefits afforded: Inpatient care only Pilots in Outpatient care
    • 12. 12 Smart card technology: Successes  Reduction in waiting time  Credibility enhancement  Benefits afforded with no time lag  Reduction from 45-60 days to 25 minutes in the Pilot Project  Better enrolment ratio  Convenience leads to greater participation  Improvement by 8% in the Pilot Project  Reduction in the enrolment cost  Optimal utilization of resources  Fixed costs defrayed over larger enrolled population  Renewal costs minimal  Reduction by US $ 0.15 in the Pilot Project  Control over malpractices  No multiple cards for one households  Better data management  Efficient and reliable capture, conveyance, storage and retrieval
    • 13. 13 Smart card technology : Challenges  Limited enrolment period window  Many are left out  Migratory population  Source location or working location  Data managed at multiple points  Multiple Insurers are involved  Central Repository of data required  Technology still intimidates many  Misgivings about fingerprinting & phototaking  Higher levels of client education is needed  Hardware supplies  Oligopolistic market  Operational constraints  Power supply  Internet connectivity
    • 14. 14 2.2 Mobile phones The Microinsurance Value Chain and Mobile infrastructure
    • 15. 15 Microinsurance growth in Africa is mobile Growth in Africa 2010-2012: 200%  8 of 9 markets outside South Africa with more than 1 million insured have reached that mark through mobile insurance  Source: www.mfw4a.org/insurance/microinsurance-landscaping.html
    • 16. 16 Why mobile microinsurance?
    • 17. 17 Mobile insurance models 1. Passive Loyalty:  Given by MNOs in return of post-paid voice loyalty  Most products are offered free of charge  No mobile premium payments or even information and administration  About a third (34%) of the products are free loyalty models 100% Tied 100% Free Bundled Tiered Compulsory 0% Facilitator MNOs aiming for passive loyalty
    • 18. 18 Mobile insurance models 2. Active Loyalty: Offered to not just increase loyalty but to raise ARPU by incentivizing various kinds of behaviours. (mobile money transactions, savings balance, etc) Coverage is linked to airtime use or top-up, the frequency of transactions or deposit balance. About a third (38%) have a tiered offering where customers can either choose their coverage level or are awarded different levels depending on use of the core service Tied Free Bundled Tiered Compulsory Facilitator MNOs aiming for Active Loyalty
    • 19. 19 Mobile insurance models 2. Paying models: a.Freemium model  Based on premium payments rather than driving indirect revenue through incentivizing activity  Only a couple of freemium models: Tigo Ghana - Family Plan, and Vodacom Tanzania – Faraja  Most send policy information and at least half allow some form of policy administration via the phone b. Full premium model
    • 20. 20 Tigo – Ghana, Tanzania, Senegal AGENT ASSISTED Phase 1: Free Life Insurance Phase 2: Life and Hospi- Cash paid via airtime MTN - Ghana AGENT ASSISTED / SELF- ENROLMENT Mobile Money Life Yu - Kenya SELF-ENROLMENT Phase 1: Free Life & Disability Insurance Phase 2: Free Life, Disability and Hospicash Mobile insurance examples from MicroEnsure
    • 21. 21 Mobile insurance: YuCover (Kenya) - Initial Marketing +Education: USSD - KYC Harvesting: USSD - Initial Sale USSD - Enrolment Confirmation: SMS - Cover Confirmation and Continuous Marketing + Education: SMS
    • 22. 22 Enrolment process with mobile phones
    • 23. 23 Technology and process evolution Mobile tech is great, but care must be taken ...
    • 24. 24 Payment mechanisms 24 Airtime vs. Mobile Money
    • 25. 25  Telecom viability:  yuMobile, Kenya – “yuCover is the most successful product we have ever had for ARPU and churn”  Insurer viability:  Vanguard Life, Ghana: “Tigo Family Care Insurance the most profitable product in the portfolio” Impact on providers
    • 26. 26 Mobile phones: challenges Telecom viability:  “Free” product loses value after 12-18 months  Cost of agents in Ghana is too high to sustain  Mobile money-only products are currently limited to Kenya, Tanzania, Uganda, where there are many active mobile money users Insurer viability:  Voluntary, paid-for products attract anti selection, risk rate must be 3-5X that of free products for same cover  Telecom viability:  “Free” product loses value after 12-18 months; Whereas P2P interaction was crucial in Phase 1 success, it is costly once sign- up growth flattens  Cost of agents in Ghana is too high to sustain; evolution to mobile based enrolment is next logical step to maintaining low- cost sales structure  Costs crash by 99%+  Insurer viability:  Voluntary, paid-for products attract anti selection, risk rate must be 3-5X that of free products for same cover; complex products  tighter messaging needed on terms of cover; tighter KYC extraction needed  standardization by mobile technology complement traditional risk management
    • 27. 27 Mobile phones for enrolment: challenges  Illiteracy, poor facility with using VAS beyond voice which should be factored into interface design  Technologies not fail-safe  SMS not delivered  USSD server down  Need for good backups  Human agents  Telco service centres
    • 28. 28 Payment mechanisms in Ghana: challenges ahead 1. MTN Ghana: • Decision to tie the product to MTN mobile money • MTN explicitly wanted to promote mobile money signup/activation. • 20,000 customers and uncertain viability 1. Tigo Ghana: • Decision to go for airtime • Tigo the insurance was seen as a voice loyalty play which has nothing to do with mobile money and sits in an entirely different team • 270,000 paying customers The choices reflect the different objectives the companies had with the insurance product.
    • 29. 29 3. Watch points in implementing technology solutions  Not use technology for technology’s sake  Identify problem and then decide on a technology solution  Have a problem that technology can help solve rather than a technology in search of a problem  Technology not an end in itself- needs support to be successfully implemented  Connectivity challenges  Hand held machines vs. mobile phones  Process enhancements
    • 30. 30 Watch points in technology implementation: Smart card  Infrastructure  Power  Internet connectivity  Base data  Enumeration can be very challenging  Manpower  Basic IT skills with enrolment  Buy-in from service providers  Deferred payments  Pre-packaging of procedures & charges  Information and Education Campaign  Localized, high-impact  Hardware  Capital intensive , for the first 2 -3 years  Software  Smart card -related software: enrolment, claims transaction, ensuring data integrity for data security (India would be keen to assist) Migrating from manual to smart card regime
    • 31. 31 Watch points in technology implementation: Mobile phones  Enrolment: USSD, SMS, etc. have limits – number of characters in messages, short session times, etc., so…  define what is technically needed  strike the right compromises for target market, products  squeeze the holistic barest essentials into as simple a number of steps/deliverables as possible (all T&Cs in one SMS, for example!) The fewer the steps, the better the customer experience = greater scale!  Outcome is mixed so make sure the model is aligned with the objectives and take into account market maturity and customer understanding of the product.
    • 32. 32 4. Concluding thoughts  Technology should be approached critically to ensure that it is not just an appendage to old ways that do not work for achieving scale; new solutions needed  Technology is not to be viewed as a stand-alone initiative – Multiple programs can piggyback on the smart card platform and must have process synergies  Cooperation between mobile operators, intermediaries and insurance providers can result in innovative business models. It is important each organizations' objectives are aligned to ensure higher likelihood of success  Technology can significantly impact ability to control and adapt. However, success depends on how people use technology based interventions …. amplifies both good and bad business practices
    • 33. 33 Technology: Improving the enrolment experience Presenter: Sanjay Pande Director Amicus Advisory Private Ltd Presenter: Pranav Prashad Microinsurance Officer Microinsurance Innovation Facility Presenter: Camilo Tellez CGAP Technology and Business Model Innovation Team Presenter: Eugene Adogla Regional Operations Manager-Africa Microensure Moderator: Jasmin Suministrado Knowledge Officer Microinsurance Innovation Facility 4 June 2013 ON Q&A

    ×