Alpha Direct Insurtech Pte Ltd – Insurer Transformation Award 2023

1. The Insurer
Transformation
AWARDS 2023

2. People & Digital
Culture
On SLIDE 4-7 we look at how
we at Alpha Direct Insurtech
are using digital transformation
to positively impact people &
digital culture in the Insurance
Industry.
Conclusion
SLIDE 12
Infrastructure
On SLIDES 8 – 11 we explore
How Our cutting-edge
developments Make it easier
for us and for our Customers
to engage with us and Get fair
Insurance premiums.

3. INTRODUCTION
1. Digital transformation in the insurance industry is rapidly
evolving, with companies constantly seeking innovative
solutions to enhance their operations and meet the ever-
changing needs of their customers.
3. Graphite, our cutting-edge software product, has been a
game-changer in this regard. In this presentation, we will
elaborate on why we believe registering Alpha Direct
Insurtech (Pte) Ltd for the insurer transformation awards is
not just an opportunity but a necessity.
2. We at Alpha Direct Insurtech have developed a software
called Graphite which is a collection of component
software that seamlessly work together through API
connectivity to provide a platform on which to design
instant insurance products, create and administer policies,
generate and process claims, electronically underwrite
policies, and other aspects as required in the day-to-day
operation of the insurance business
4. The platform is suitable to be used as the primary
software for insurance underwriters, brokers and agencies,
and will connect vertically to provider’s core systems and
horizontally to partner providers of services and solutions.
Graphite offers Product Development; Policy management;
Claims; Leads; Quotes; Customer KYC just to name a few.

4. PEOPLE & DIGITAL
CULTURE
• In Africa, specifically Botswana, the insurance penetration rate stands at a mere 3%. This figure primarily encompasses customers capable
of affording traditional insurance products, which were largely modeled after standard offerings prevalent in developed markets like Europe
and the United States. Consequently, a vast untapped market segment remains unaddressed—a sea of underinsured and uninsured
individuals who have yet to encounter insurance solutions tailored to their financial constraints, comprehension levels, and genuine needs.
• The prevailing property and casualty (P&C) insurance sector in Botswana has predominantly revolved around competitive pricing in
segments like Motor Comprehensive, property risks, and general business insurance. This leaves a significant opportunity to target the
uninsured, underinsured, and financially underserved populations. By crafting insurance products that specifically address the perils of utmost
concern to these individuals, aligning with their budget constraints, and presenting them in an easily comprehensible format, we can bridge
the insurance gap. Moreover, these products can be conveniently accessible in locations frequented by the target audience, eliminating the
need for extensive advisory services. It is against this backdrop that the inception of our revolutionary Graphite system came into being,
driven by a vision to make insurance more accessible and affordable for individuals in remote regions.
• The heart of the matter lies in the centralized nature of traditional insurance products. These conventional offerings are typically tailored
to suit the dynamics of well-established markets in developed countries. However, when transported to the context of developing nations,
such as our own, they often fail to resonate with the unique needs and challenges of our customer base, many of whom reside in remote
areas.

5. THE SOLUTION GRAPHITE
PROVIDES
Our journey towards Graphite began with a resolute commitment to address this glaring
disparity in access to insurance. We recognized that the key to creating a transformative
solution lay in harnessing the immense potential of mobile technology, which had proliferated
even in the most remote corners of our country. Research revealed that a significant portion of
our population had access to mobile smartphones equipped with SIM card slots. This simple
yet powerful realization paved the way for our innovative approach. Graphite leverages the
ubiquity of mobile phones and the expansive coverage of network providers offering 2G, 3G,
and 4G connectivity. By employing this technology, we unlocked a world of possibilities in
insurance accessibility. No longer bound by the limitations of traditional insurance models, we
embarked on a mission to reach every corner of our nation, ensuring that even those residing in
the most secluded areas could access insurance products with ease.
Digital financial inclusion: We promote financial inclusion by offering digital insurance products
that cater to underserved segments of the population. By making insurance accessible to more
citizens, we contribute to economic stability and resilience in Botswana. At Alpha Direct we saw
it fit to develop a product called ‘’Insurance in a box” which allows low-income households to
also benefit from insurance at a reasonable price instead of just focusing on high and middle-
income households. One can get insurance from a premium as low as BWP50.00

6. Insurance in
a box
progress over
the years

7. Insurance in a box Graphite has impacted the insurance industry by bridging the insurance
accessibility gap through development of the’ “Insurance In A Box”, making
coverage available to both upper and lower-income segments, a feat
previously unachieved.

8. INFRASTRUCTURE
Our expertise in insurance and
technology enabled us to identify a
significant gap in the vehicle
insurance market. This realization
dawned during the COVID lockdowns
in 2020 when vehicle owners,
despite their cars remaining
stationary for months, continued
paying standard comprehensive
insurance premiums. These
payments covered potential risks like
theft and hail damage, even though
the vehicles were scarcely driven.
It became evident that a reliable method
to monitor a customer's weekly or
monthly mileage was lacking, making it
impossible to adjust insurance
premiums based on actual road risk.
Many individuals we spoke to express a
keen interest in a more equitable
premium calculation method, such as
"Pay as you go" or "Pay per km." This
compelling need prompted us to embark
on a journey to fill this void in the
insurance landscape in which Graphite
was born.

9. S
How Alpha Direct Insurtech is using Digital Transformation
to better its Infrastructure
1. Our solution encompasses a comprehensive
blend of hardware, infrastructure, and software,
and its development is led by a team of industry
experts who assume pertinent project roles. The
hardware component of our solution specifically
revolves around a state-of-the-art OBD (On-Board
Diagnostics) device. This device is configured
and subsequently affixed within a customer's
vehicle via the OBD port, a ubiquitous feature
present beneath the steering wheel of virtually all
standard vehicles.
2. The device boasts a suite of functionalities,
including GPS capability, a SIM card slot, and
multiple gyrometric sensors dedicated to monitoring
a driver's behavior. Among its array of sensor
capabilities are the detection of acceleration
patterns, braking tendencies, cornering maneuvers,
and more, all of which collectively contribute to the
construction of an individualized risk profile for each
user.
3. The data acquired by the device is transmitted
discreetly through our central infrastructure,
facilitated by mobile telecommunications
technology, leveraging 2G, 3G, and 4G networks.
This data is then relayed to an Internet of Things
(IoT) platform situated on cloud servers.
4. A pivotal feature within Graphite® is the Pay-Per-
Km module, which harnesses this wealth of data
within an algorithm embedded in its expert ratings
engine. This module calculates a bespoke rate per
kilometer, meticulously incorporating all the user-
specific data collected, facilitating precise billing. The
total kilometers driven are multiplied by this
customized rate per kilometer, yielding the trip
premium, which is then directed to the billing module
for aggregation.

10. How Alpha Direct Insurtech is using Digital
Transformation to better its Infrastructure
5. Upon a customer's initial purchase of the device, their
maiden trip is billed in adherence to our expert rating
system, drawing from the available pool of data at that
time. Subsequently, as further behavioral data specific to
the customer is collected, it is funneled to a behavior
engine. This engine employs its algorithmic prowess to
influence the rate per kilometer offered to the customer,
effectively impacting subsequent billing cycles as more
customer-centric data becomes available.
6. This pioneering technology represents the
foremost method globally for converting the fixed
costs associated with comprehensive motor
insurance premiums into a variable, adaptable
cost structure based on actual road risk. It
ensures that motorists exclusively pay for the road
risk they generate through their driving behaviors
and geographical location.
7. On the software side, the entirety of our intellectual
property, including insurance policy management
software, billing systems, ratings engines, algorithms,
databases, driver behavior engines, and more, is
unequivocally owned by Risk Software Africa. In contrast,
the intellectual property associated with the technology
underpinning our hardware and network infrastructure is
possessed by various third-party entities.
8. Our development philosophy for Graphite is
founded on a steadfast commitment to continuous
enhancement of the core platform. It is an ongoing
journey marked by perpetual refinement and
progress. While the platform reached its initial
development milestone in 2021, our efforts since
then have been dedicated to elevating its
capabilities. This involves rectifying issues,
expanding features, and ensuring seamless
maintenance.

11. EVOLUTION OF GRAPHITE
2019
Graphite was developed with
just minimal featuresProduct
development and policy
management; Reinsurance;
Billing; Quotes and Claims
being:
2021
After the COVID 19
pandemic, we re-evaluated
our app and added:
The “Pay per km” feature to
fairly charge clients on
mileage; customer KYC and
automated compliance;
Leads; Graphite Motor
Ratings Engine (Micro
Service)
2023
Currently Graphite enables
customers to conveniently
obtain vehicle insurance
coverage from the comfort of
their homes through our
dedicated website
startalphadirect.co.bw
In future
Graphite will have
-The ability to do complex
insurance products that
require reinsurance
-Rating algorithms AND
Fraud detection using AI
and Machine learning
-Business intelligence and
reporting

12. CONCLUSION
In conclusion, Graphite is not merely a software
product; it represents our unwavering commitment to
driving digital transformation in the insurance industry.
It has significantly impacted both the industry and
customers by introducing innovative, flexible, and
equitable insurance solutions. Our commitment to
change over time ensures that Graphite will continue to
evolve, adapting to the dynamic insurance landscape.
Registering Graphite for the insurer transformation
awards is not just a desire; it is a recognition of the
groundbreaking contributions we have made to the
industry and our pledge to drive further transformation
in the years to come. We eagerly anticipate the
opportunity to showcase Graphite's achievements and
its commitment to positive change in the insurance
sector.