Mobile Network Operator Diversifying, Selling Insurance In Africa

Mobile Network Operator Diversifying, Selling Insurance In Africa

New Delhi-based telecommunications company Bharti Airtel is partnering with U.K.-based MicroEnsure, a provider of mass-market insurance products, to sell insurance to Airtel customers in Africa, according to a report in AllAfrica.

Mobile network operators have identified a micro-insurance market for low-and-middle income consumers, the report said.

Although micro insurance grew more than 200 percent in Africa from 2010 to 2012, fewer than 20 million Africans outside South Africa have any form of micro insurance – that’s less than 5 percent of the potential 400 million customers in sub-Saharan Africa, according to a study published by Making Finance Work for Africa.

Airtel insurance products will include life, accident, health, agriculture, and others, marketed and promoted with its local brand, marketing and distribution infrastructure. MicroEnsure will design and implement products, provide technology, do underwriting, administration and customer service.

“There is demand for insurance offerings that are simple, affordable and reliable,” said Andre Beyers, chief marketing officer for Airtel Africa.

Peter Gross, regional director of Africa for MicroEnsure, said, “Insurance in Africa will change forever.”