Managing risk at the touch of a button
Digital insurance will be on the agenda at the IAMTN Africa Summit as delegates consider how to boost financial inclusion in emerging markets by harnessing the power of technology.
Africa is rightly recognised as a leading hub for mobile money, but as mobile device use continues to grow exponentially in the region, what other products can be distributed via this accessible channel?
This is a question that will be addressed at this year’s IAMTN Africa Summit, which takes place in Cape Town 22-23 April. According to a recent GSMA report, by 2025 half the population of Sub-Saharan Africa - over 600 million - will subscribe to mobile services. That opens up a plethora of opportunities.
Consumers in the region, and the world’s other emerging markets, are particularly vulnerable to life’s risks and have limited resources to draw upon when things do go wrong. Innovative products and models that leverage the widespread use of mobile phones can fuel insurance markets that protect these emerging consumers, as well as deliver benefits for mobile operators, insurance companies and other distribution partners.
At the Summit, we will be delighted to welcome speaker Jeremy Leach, Founder and CEO of Inclusivity Solutions, an insurtech start-up that designs, builds, operates and innovates inclusive digital insurance solutions and who partners with mobile operators, financial service providers, insurers and other distribution partners to deliver these solutions through digital channels.
Founded in 2015, Inclusivity Solutions is based in Cape Town and last year raised $2.6 million in a Series-A round led by Amsterdam-based impact investment and advisory firm Goodwell Investments.
Supporting emerging consumers
This additional investment has enabled Inclusivity Solutions to accelerate the growth of its product offering with existing partners in Africa. The company has launched its products in Ivory Coast, Rwanda and Kenya in partnership with Orange, Airtel and Equity Bank’s Equitel, respectively. Through these partnerships, Inclusivity Solutions has provided cover to more than 680,000 people.
“Smartphone penetration in emerging markets is expected to increase 22% by 2025,” says Leach. “This projection, coupled with the fact that customers on average transact twice as much on a smartphone versus a feature phone bodes extremely well for the growth of complimentary and bundled financial services, which include insurance.”
“Insurance penetration in emerging markets currently only resides at approximately 3%, leaving 97% of emerging markets consumers vulnerable to risk,” he adds. “Traditional insurance models have proven expensive and only geared to the top 1% of income earners, leaving the majority of emerging consumers unprotected. Digital insurance helps address the protection gap through the pervasiveness of mobile phones, whilst simultaneously offering distribution partners such as mobile operators, banks and insurers, the opportunity to attract new customers, retain existing customers and drive new revenue streams.”
Leach leads a talented and experienced team that has already achieved significant traction across the continent. Their innovative approach expertly tackles the insurance protection gap for the unserved and under-served through simple, affordable and accessible products that work on even the most basic of phones.
In order for the potential of digital insurance to be fully realised, consumer-centric solutions are required; solutions that deliver real impact for emerging consumers and that make long-term business sense. Inclusivity Solutions provides a complete digital insurance solution from its award-winning platform to the provision of specialist services such as strategy, product and process design. Combined, their solution not only facilitates the introduction and growth of digital insurance solutions, but also - importantly - underpins the growth of sustainable, inclusive insurance markets.
In addition to expanding its footprint on the African continent, Inclusivity Solutions is also now turning its attention to opportunities further afield. “East Africa is our strongest near-term business development opportunity,” explains Leach. “However, we are also involved in strategic partnership opportunities that will help us to expand into the Middle East and Asia.” The firm is a good example of how fintechs and incumbents are coming together to better serve the world’s consumers.
To find out more about this year’s forward-looking agenda and attendees for the IAMTN Africa Summit 2020, visit our event microsite. If you would like to join us at the event in Cape Town, you can register today.