1. ---------------------------------------------------
CIMA / FANAF WORKSHOP
ON MOBILE INSURANCE
Abidjan, June 2016
FANAF’s Contribution
Presented by Saliou BAKAYOKO

2. PRESENTATION OUTLINE
1. CURRENT STATE OF MOBILE INSURANCE (MI) IN THE CIMA ZONE
2. COMPARISON WITH THE MI MARKET IN GHANA
3. FEEDBACK ON PILOTS AND MI EVOLUTION PROSPECTS
4. FANAF’S RECOMMENDATIONS

3. 1. CURRENT STATE OF MOBILE INSURANCE (MI) IN THE CIMA ZONE
1.1- Brief Description of the Main MI Models in the Zone
1.2- Comparison Table of the Main MI Models in the Zone
1.3- MI Market Production Figures in the Zone to Date

4. 1. CURRENT STATE OF MOBILE INSURANCE (MI) IN THE CIMA ZONE
1.1- Brief Description of the Main MI Models in the Zone
1.2- Comparison Table of the Main MI Models in the Zone
1.3- MI Market Production Figures in the Zone to Date

5. 1. CURRENT STATE OF MOBILE INSURANCE (MI) IN THE CIMA ZONE
1.1- Brief Description of the Main MI Models in CIMA Zone
The MI models in use within the zone can be divided into two main groups:
Models centred around the insurer; and
Models centred around a mobile network operator (MNO) and/or technical service provider.

6. MI Model Distribution Enrolment Process Premium Payment Method Service
Management
Insurer-Centred Models
The MNO or possible technical service provider plays a relatively passive role in distribution and management.
Products sold in the MNO’s agencies by the insurer’s agents or by the MNO.
Client fills out an enrolment form and a policy is delivered to the client later.
Client enters a USSD code on his or her mobile phone to pay the 1st premium using mobile money.
The client pays his or her recurring premiums via mobile money:
either voluntarily
or by automatic withdrawal from the mobile money account.
Classic management by the insurer.
Payment via mobile money by the insurer or via a platform.
Models Centred around an MNO and/or Technical Service Provider
The insurer has a relatively passive role in distribution and management.
Distribution is done by the MNO (who offers the product under its brand) or by the technical service provider.
The client enrols using his or her mobile by entering a USSD code or by calling.
The 1st premium is paid using the client’s phone credits or paid for the client for free by the MNO depending on whether or not the client has reached a set consumption threshold.
The client’s premiums are paid using the client’s phone credits or paid for the client for free by the MNO depending on whether or not the client has reached a consumption threshold.
All service management is done by the technical service provider that has an appropriate IT platform.

7. 1. CURRENT STATE OF MOBILE INSURANCE IN THE CIMA ZONE
A few remarks:
a) MI is offered in mainly 3 markets (Côte d’Ivoire, Senegal and Burkina Faso)
b) A pilot is reported to be underway in Cameroon. We have not received data on it.
c) The pilot in Niger has been suspended. The provider later withdrew.
d) The insurer-centred model is in place in Côte d’Ivoire.
e) The only life insurance company in Senegal to offer MI uses the MNO-centred
model.
f) Only two technical service providers are known in the market to date.

8. 1. CURRENT STATE OF MOBILE INSURANCE (MI) IN THE CIMA ZONE
1.1- Brief Description of the Main MI Models in the Zone
1.2- Comparison Table of the Main MI Models in the Zone
1.3- MI Market Production Figures in the Zone to Date

10. 1. CURRENT STATE OF MOBILE INSURANCE (MI) IN THE CIMA ZONE
1.1- Brief Description of the Main MI Models in the Zone
1.2- Comparison Table of the Main MI Models in the Zone
1.3- MI Market Production Figures in the Zone to Date

11. Sales Revenue Estimated 2015 Production Figures Number of Clients
Products Sold
380,000
1,000,000,000 CFA francs
Savings & Death + Hospitalisation
380,000 clients, of which 300,000 (approximately 80%) in MNO-centred models.
MNO-centred models mainly sell death insurance products.
Insurer-centred models sell savings products (necessarily non-micro).

12. PRESENTATION OUTLINE
1. CURRENT STATE OF MOBILE INSURANCE IN THE CIMA ZONE
2. COMPARISON WITH THE MI MARKET IN GHANA
3. FEEDBACK ON PILOTS AND MI EVOLUTION PROSPECTS
4. FANAF’S RECOMMENDATIONS

13. 2. COMPARISON WITH THE MI MARKET IN
GHANA
The two markets will be compared in regard to the following topics:
a) The mobile insurance activity launch period
b) Regulation of mobile insurance activities
c) The types of products sold via mobile phones
d) The mobile models in use
e) The number of people insured

14. COMPARISON CRITERIA
CIMA ZONE
GHANA MARKET
MI Activity Launch Date
2012
2010
State of Regulations
No initiatives to date in this area
No specific regulations until But a relatively detailed study involving all MI stakeholders was done by a consultant at the request of NIC.
Products Sold
Death + Savings + Hospitalisation (non essentially micro products)
Death + Invalidity + Hospitalisation
Existing Models
Insurer-centred models and models centred on the MNO and technical service provider
The same models as the CIMA market, with a large preponderance of MNO-centred models with payment using phone credits or by the MNO.
One can see a strong presence of technical service providers.
Estimated number of insured as at 31/12/2015
380,000
2,700,000

15. PRESENTATION OUTLINE
1. CURRENT STATE OF MOBILE INSURANCE IN THE CIMA ZONE
2. COMPARISON WITH THE MI MARKET IN GHANA
3. FEEDBACK ON PILOTS AND MI EVOLUTION PROSPECTS IN CIMA
4. FANAF’S RECOMMENDATIONS

16. 3. FEEDBACK ON PILOTS AND MI EVOLUTION
PROSPECTS IN THE CIMA ZONE
Feedback on pilots
a.1) Insurer-centred models
Pluses: efficient distribution channel for all segments of the
population
. better image for insurance through its association with
the MNO
. client management well automated, which improves client
relations

17. 3. FEEDBACK ON PILOTS AND MI EVOLUTION
PROSPECTS IN THE CIMA ZONE
Feedback on pilots
a.1) Insurer-centred models
Minuses: . the minimal involvement of the MNO does not allow the hoped-for
results to be attained
. low premium collection rate
. a distribution network that is cumbersome to set up

18. 3. FEEDBACK ON PILOTS AND MI EVOLUTION
PROSPECTS IN THE CIMA ZONE
Feedback on pilots
a.2) Models centred around an MNO and/or technical service provider
Pluses: same as for insurer-centred models with more potential
Minuses:
. management somewhat cumbersome with the technical service provider
. MNO and/or provider often take initiatives without
consulting the insurer

19. 3. FEEDBACK ON PILOTS AND MI EVOLUTION
PROSPECTS IN THE CIMA ZONE
b) Prospects
All stakeholders in the sector now agree that Mobile Insurance has huge potential because of:
the very strong penetration of mobile phones and the constantly growing use of mobile money by populations and especially low-income people
MI’s many advantages

20. Indeed, Mobile Insurance (MI):
facilitates access for a large number of low-income people who are outside the reach of classical insurance to buy life insurance products and especially microinsurance
facilitates premium collection at a relatively lower cost
facilitates policy management and rapid client information at low cost
generates client trust through the presence of an MNO

21. Marketing Distribution
improves the entire insurance value chain:
In light of all these advantages, all sector stakeholders (CIMA, FANAF,
MNOs) must rapidly join efforts to make mobile insurance an efficient model for the
development of life insurance and microinsurance in particular.
Product Creation
Pricing
Marketing Distribution
Client
Management
Premium & Claims
Payment

22. PRESENTATION OUTLINE
1. CURRENT STATE OF MOBILE INSURANCE IN THE CIMA ZONE
2. COMPARISON WITH THE MI MARKET IN GHANA
3. MI EVOLUTION PROSPECTS IN CIMA
4. FANAF’S RECOMMENDATIONS

23. 4. FANAF’S RECOMMENDATIONS
Given MI’s immense potential and the advantages listed above,
Given the diverse models already existing in the CIMA market,
Given that insurer-centred models are less exposed to the risks involved in
offering MI and identified during this workshop,
Given that MNO-centred models have higher growth rates in terms of the number of policies purchased, thus favouring greater financial inclusion and the development of microinsurance,
Given the balance of power in favour of MNOs and providers in their partnerships with insurers offering mobile insurance,

24. 4. FANAF’S RECOMMENDATIONS
FANAF recommends:
Setting up an appropriate regulatory framework involving all stakeholders concerned (CIMA, FANAF, Central Banks, Telecommunications Regulation Authorities, mobile network operators, platform providers, consumers) and allowing all MI models to be offered, whether currently existing or not.
This regulatory framework must take into account the legal and administrative aspects of digitalising insurance, notably when it comes to mobile microinsurance:

25. 4. FANAF’S RECOMMENDATIONS
policy digitalisation, or failing that a system for the electronic authentication of contractual documents that, what is more, should be streamlined.
regulatory provisions governing the unilateral withdrawal of the MNO or
technical service provider, and the responsibilities of these later.
phone credit purchase levels ensuring the profitability of the model for all
parties involved (insurers, MNOs, providers and clients).
To accomplish this, FANAF requests that a reflection framework involving all stakeholders be set up and entrusted with setting up such legislation.

26. THANK YOU