This document discusses Old Mutual's efforts to provide mobile insurance in Africa by partnering with mobile network operators. It notes that while mobile phone ownership is widespread in Africa, insurance penetration remains low at only 1% on average. Old Mutual sees an opportunity for mobile operators to help address this distribution gap and lack of accessibility given their extensive networks. The document outlines Old Mutual's mobile insurance partnership with MTN in Swaziland as a case study, and discusses challenges faced and lessons learned in aligning the partnerships between these different types of organizations.

1. OLD MUTUAL
MOBILE INSURANCE IN
AFRICA
MANAGING INTERNAL AND
EXTERNAL STAKEHOLDERS
WHILE DELIVERING INNOVATION
IN THE MARKET
DAVID O’BRIEN
CUSTOMER ENGAGEMENT AND DIGITAL

2. OLD MUTUAL2
mobile is changing
customer expectations

3. OLD MUTUAL3 Source: GSMA Intelligence, KPMG Africa
HAVE A MOBILE PHONE
100
HAS INSURANCE
1
FOR EVERY
31
AFRICANS
BUT ONLY

4. OLD MUTUAL4
mobile
solution
mobile
strategy
digital
strategy
mobile is an
enabler
customer
value
proposition
business
strategy
business
vision
customer
need

5. OLD MUTUAL
THE INSURANCE OPPORTUNITY
5
0%
5%
10%
15%
20%
25%
30%
35%
2013
% Mobile Connections % Insurance Penetration
IN AFRICA, MOBILE NETWORK OPERATORS
CAN ADDRESS A DISTRIBUTION GAP IN THE INSURANCE SECTOR
Distribution Reach
Affordability
Understanding
Familiarity
5

6. OLD MUTUAL6
where are we going

7. OLD MUTUAL
THE JOINT OPPORTUNITY
Reduces Churn
Encourages
Preferred
Customer
Behaviour
Supports ARPU
Diversifies
Revenue
Streams
Build Deeper
More Meaningful
Relationships
Insurance is a strong
incentive.
The perceived value of
the insurance benefit is
far greater than the cost
Churn Reduction 10-25%
Yu Mobile in Kenya
reported a decrease in
Churn by 20% with
insurance incentive.
7

8. OLD MUTUAL8
the mobile capability
needs two components
simple mobile-ready
prepaid insurance admin platform
universal
mobile interface

9. OLD MUTUAL9
low cost scalable
integrated with
mobile app
platform
designed for
simple product
mobile admin platform
should be fit for purpose

10. OLD MUTUAL
[Swaziland]

11. OLD MUTUAL
Nigeria
Nam
Bt
Kenya
Land locked country approx.
17000 sq.km
Population = 1 million
GDP per capita = US$ 3,034.22
(2013)
Only one Mobile service
provider (MTN Swaziland)
MTN Swaziland has 800k
customers, 250k registered
Mobile money Users
11
THE KINGDOM OF SWAZILAND

12. OLD MUTUAL12

13. OLD MUTUAL13

14. OLD MUTUAL
CREATING INTERNAL AWARENESS
PHASE 1
• INTERNAL EMAILERS
• FLYERS
• AMICUS
• MTN CALL CENTER
14
14

15. OLD MUTUAL
EXTERNAL CAMPAIGN
15

16. OLD MUTUAL16
Language – ARPU vs. APE
Risk Tolerance – Insurers practiced at managing risk vs.
MNO’s attitude to the unknown
Scale – MNO revenues dwarf insurance revenues
Partnership Alignment – Finding the right long term
recipe
Identifying stakeholders to be aligned – internal and
external
Challenges

17. OLD MUTUAL17
Leadership – Joint executive buy-in is essential
Alignment – Middle management need to be bought
into the benefits of the model
Sit down – Arrange regular joint team meetings
Practical challenges – Be prepared for unexpected
obstacles
Sell the story – Create the rallying call through regular
communications and updates
Learnings

18. OLD MUTUAL18
think differently
simple – mobile moments
mobile requires us all to
customer is the expert
minimum viable product