Insurers in Pakistan are bringing life
insurance to new markets via “branchless” financial services organizations
operating by mobile phone. For example, subscribers to Zong Mobile can get 30
days' coverage between PKR 100k (about $1,000) to PKR 300k (about $3,000) for a
daily premium as low as PKR 2 (one fiftieth of a cent, US). To put some context
around that, according to Bloomberg http://www.bloomberg.com/slideshow/2012-08-13/highest-cheapest-gas-prices-by-country.html#slide52
the average daily income in Pakistan is $3.57. The service is delivered using
just four text messages – and that's all.
The challenge in growing this market is not
about technology but awareness. SMS (texting) technology is a perfect channel
for life insurance sales transactions. It's not so good for sales education.
There will need to be further investment in relationship management.
Another product mentioned in the review I
read gives users monthly coverage based on the balance in their mobile bank
accounts. This is a cool extension of an existing offering and a good way to
promote money management. I notice also that Zong Mobile is a
business of China Mobile. The new mass markets for insurance are being built in
Asia, and are based on mobile technology. The potential for innovation and
growth is jaw-dropping. Mobile Life Insurance