Mobile Insurance: Freemium to Premium Adjoa Boateng Regional Director – West Africa November, 2015 AIO Life Seminar Lome, Togo | November, 2015

Outline  MicroEnsure – Who We Are & Global Footprint  The Freemium Model – The Lemonade Stand – The Win-Win-Win Model – Why Offer Freemium – Experience from Airtel Insurance  Upgrading to Premium – Current Position – Converting Free to Paid  Key Lessons

 Founded in 2002 by Opportunity International  2007 Gates grant, 2012 conversion to for-profit social enterprise  Investors: AXA, IFC, Omidyar Network, Sanlam, Opportunity, Telenor  African footprint: Ghana, Malawi, Zambia, Nigeria, Kenya, Tanzania, Uganda, Mozambique, Niger, Burkina Faso, Madagascar  Design, implement and operate micro insurance products worldwide  85% of customers are new to insurance  Cover various classes of risk: life, inpatient/outpatient health, crop, political violence, micro asset, accident/disability, “decongestion”  90 banking and microfinance partners in 12 countries  70 insurance partners, 3 telecom partners  3-Time Winner of Financial Times/IFC Awards  ‘’Best Micro Insurance Provider, Africa” - Mobile Money Africa Awards 2014  "Best Low Income Group Product, Africa" Mobile Money Africa Awards 2015 MicroEnsure - Who We Are & Global Footprint

 10 –year – old Alex setup his lemonade stand.  There were 6 other lemonade stands around but all of them were offering similar lemonade flavours. D ecision? He decided to give:  A plain lemonade for Free plus;  Offer 5 other lemonade flavours at a Price of $1 per glass. Note : The $1 is to make up for the cost of giving away the free lemonades. What was the result?  His stand attracted more crowd.  He earned more than the other stands. The Lemonade Stand /

The Win-Win –Win Model Win – Win –Win Subscriber – Telco - Insurer I. Subscriber is able to access FREE Insurance probably for the first time II. Telco is able to EARN MORE REVENUE from LOYAL customers III. Insurer gains access to a SIZEABLE risk Pool Free A Better Model

Why Offer Freemium? The Win-Win-Win Model Market Penetration Tool People willing to pay, but after they have experienced how the product works More paid sales than paid products alone Increase loyalty and spend Product pays for itself via ARPU Uplift and Churn Reduction

three for free! airtel three for free! insurance for everyone – only from airtel Enjoy peace of mind from airtel life, accident, and hospital cover, all in one great package. Use more airtel, get more insurance! Earn up to GHS 2,500 insurance just for using your airtel line Freemium Market Impact – Airtel Ghana Airtel Insurance (2014 Data) One of the largest benefits on a mobile insurance product in the world First launched in Ghana ; now 8 countries Airtel Ghana Three for Free, launched January Product to cover life, accident and hospital cash About 70% of registered Subs qualify each month for cover Conversion Rate of 65%

Upgrading to Premium Current Position Total Paid Subscribers86,377 Avg. Daily Uptake392 Avg. Monthly Uptake11,020 Avg. Monthly Paying Subscribers (from inception 19,594 Overall there has been a 94% increase in payment success from 19% to 37% in April and October respectively.

Converting Free to Paid Sales Channels – Field Agents – Call Centre – Telco Retail Offices – USSD – SMS Best Option: Call Centre – Product explained by real person. – Reach 3x more than field agent per day. – 70% of enrolments for Airtel Insurance in Ghana

Key Lessons In-house call centre more effective & cost- efficient Flexible payment terms e.g. monthly, weekly and daily Staff knowledge on product offerings & component is essential Use customer balance data to design payment structure. Customer Education is important Use a combination of Above-the- Line & Below- the-line Marketing

Thank You Adjoa Boateng