Post on 26-May-2015
description
transcript
1
Technology: Improving the enrolment experience
2
Technology: Improving the
enrolment experience
Presenter:Sanjay Pande
DirectorAmicus Advisory Private Ltd
Presenter:Pranav Prashad
Microinsurance OfficerMicroinsurance Innovation Facility
Presenter:Camilo Tellez
CGAP Technology and Business Model Innovation Team
Presenter:Eugene Adogla
Regional Operations Manager-AfricaMicroensure
Moderator:Jasmin SuministradoKnowledge Officer
Microinsurance Innovation Facility
4 June 2013
3
Discussion Flow
1. Challenges in microinsurance enrolment2. Technologies for enrolment
2.1 Smart cards2.2 Mobile phones
3. Watch points in implementing technology solutions4. Concluding thoughts
4
1. The Main Hurdles in Enrolment
Identification
Infrastructure
Education and awareness
5
Challenges in enrolment
Identification/ documentation requirement
Unclear forms- long, time consuming
Complex processes- low awareness
Lack of Interaction: who to ask
Liquidity constraints irregular income flows Non synchronous
schedules Prioritisation
TRUST
High costs Lack of channel and
physical infrastructure Insurance agents “low prioritisation” of low-
income markets alternative channels (post
offices, retailers, banks) Clients’ understanding
Client side Provider side
6
Clients’ needs and technology requirements
Trust and active communication Does technology enhance or dilute these aspects
Human connection- repeated contact, reminders, physical presence
How well does technology simulate Relevant locations, timing, interface personnel for interaction
responsiveness Facilitate and comfortable environment
Relevant processes- clients 'capabilities and limitations Ease of understanding, transaction and confirmation
Tangible benefits throughout the policy duration Protection beyond the less frequent event or loss Facilitate “Value added” services, linked to the product…
7
2.1 Smart card Technology
Current popular applications
IdentityBanking & Financial ServicesAccess controlTransportationTelecommunicationHealthcare
Nos. in circulation: 6.9 bn (Figures for 2012 : Source : Eurosmart-April,13)
Telecom : 5.1 Financial Services : 1.2 Government Healthcare : 0.31 Transport : 0.13Pay TV : 0.13Others : 0.09
8
Smart card technology: Benefits Digitisation of base data
De-duplication On-site Activities : No remote
locations Instant enrolment Spot data amendment and
personalization Instant printing and issue Instant uploading addresses
transit related issues Seamless mapping of biometrics
and demographics No mismatch
Instant activation No waiting to avail of benefits
9
Hardware
Laptop with webcam
Fingerprints Scanner
Smart card Reader
Printer
Fingerprints Reader
Smart card technology: Hardware and software
Enrolment Software• Identification, collection of demographics & biometrics• Personalization, printing cards issuance• Data collection, conveyance and management Claims Transactions Software• Identification, admission treatment • Data conveyance and management•Financial transactionsOther• data integrity and security
10
Smart card: Enrolment process flow
11
Smart card implementation
Pilot project supported by the Microinsurance Innovation Facility
Health Insurance Scheme for handicraft artisans, funded by the Government of India Project locations: 3 districts in East India Households Enrolled: 2,768 Hospitals / clinics networked: 44 Claims reported till 19th May, 2013: 1,950 Benefits afforded: Outpatient and inpatient care Focus: Outpatient care
National Health Insurance Scheme ( RSBY)
Health Insurance scheme for the population below the Poverty Line in India Locations: 26 State, about 525 districts Households enrolled: 35 million Hospitals networked: over 9,500 Claims reported: 5.2 million Benefits afforded: Inpatient care only
Pilots in Outpatient care
12
Smart card technology: Successes
Reduction in waiting time Credibility enhancement Benefits afforded with no time lag Reduction from 45-60 days to 25 minutes in the Pilot Project
Better enrolment ratio Convenience leads to greater participation Improvement by 8% in the Pilot Project
Reduction in the enrolment cost Optimal utilization of resources Fixed costs defrayed over larger enrolled population Renewal costs minimal Reduction by US $ 0.15 in the Pilot Project
Control over malpractices No multiple cards for one households
Better data management Efficient and reliable capture, conveyance, storage and retrieval
13
Smart card technology : Challenges
Limited enrolment period window Many are left out
Migratory population Source location or working location
Data managed at multiple points Multiple Insurers are involved Central Repository of data required
Technology still intimidates many Misgivings about fingerprinting & phototaking Higher levels of client education is needed
Hardware supplies Oligopolistic market
Operational constraints Power supply Internet connectivity
14
2.2 Mobile phonesThe Microinsurance Value Chain and Mobile infrastructure
15
Microinsurance growth in Africa is mobile
Growth in Africa
2010-2012: 200%
8 of 9 markets outside South Africa with more than 1 million insured have reached that mark through mobile insurance
Source: www.mfw4a.org/insurance/microinsurance-landscaping.html
16
Why mobile microinsurance?
17
Mobile insurance models
1. Passive Loyalty: Given by MNOs in return of post-paid voice
loyalty Most products are offered free of charge No mobile premium payments or even information
and administration About a third (34%) of the products are free
loyalty models
100%
Tied
100%
Free Bundled
Tiered Compulsory
0%
Facilitator
MNOs aiming for passive loyalty
18
Mobile insurance models
2. Active Loyalty:Offered to not just increase loyalty but to raise ARPU by incentivizing various kinds of behaviours. (mobile money transactions, savings balance, etc)Coverage is linked to airtime use or top-up, the frequency of transactions or deposit balance.About a third (38%) have a tiered offering where customers can either choose their coverage level or are awarded different levels depending on use of the core service
Tied Free Bundled
Tiered Compulsory Facilitator
MNOs aiming for Active Loyalty
19
Mobile insurance models
2. Paying models:a.Freemium model
Based on premium payments rather than driving indirect revenue through incentivizing activity
Only a couple of freemium models: Tigo Ghana - Family Plan, and Vodacom Tanzania – Faraja
Most send policy information and at least half allow some form of policy administration via the phone
b. Full premium model
20
Tigo – Ghana, Tanzania, Senegal
AGENT ASSISTED
Phase 1: Free Life Insurance
Phase 2: Life and Hospi-Cash paid via airtime
MTN - Ghana
AGENT ASSISTED / SELF-ENROLMENT
Mobile Money Life
Yu - Kenya
SELF-ENROLMENT
Phase 1: Free Life & Disability Insurance
Phase 2: Free Life, Disability and Hospicash
Mobile insurance examples from MicroEnsure
21
Mobile insurance: YuCover (Kenya)
- Initial Marketing +Education: USSD- KYC Harvesting: USSD
- Initial Sale USSD- Enrolment Confirmation: SMS
- Cover Confirmation and Continuous Marketing + Education: SMS
22
Enrolment process with mobile phones
23
Technology and process evolution
Mobile tech is great, but care must be taken ...
24
Payment mechanisms
24
Airtime vs. Mobile Money
25
Telecom viability: yuMobile, Kenya – “yuCover is the most successful
product we have ever had for ARPU and churn”
Insurer viability: Vanguard Life, Ghana: “Tigo Family Care Insurance the
most profitable product in the portfolio”
Impact on providers
26
Mobile phones: challenges
Telecom viability: “Free” product loses value after 12-18 months Cost of agents in Ghana is too high to sustain Mobile money-only products are currently limited to Kenya,
Tanzania, Uganda, where there are many active mobile money users
Insurer viability: Voluntary, paid-for products attract anti selection, risk rate
must be 3-5X that of free products for same cover
Telecom viability: “Free” product loses value after 12-18 months; Whereas P2P
interaction was crucial in Phase 1 success, it is costly once sign-up growth flattens
Cost of agents in Ghana is too high to sustain; evolution to mobile based enrolment is next logical step to maintaining low-cost sales structure Costs crash by 99%+
Insurer viability: Voluntary, paid-for products attract anti selection, risk rate must
be 3-5X that of free products for same cover; complex products tighter messaging needed on terms of cover; tighter KYC extraction needed standardization by mobile technology complement traditional risk management
27
Mobile phones for enrolment: challenges
Illiteracy, poor facility with using VAS beyond voice which should be factored into interface design
Technologies not fail-safe SMS not delivered USSD server down
Need for good backups Human agents Telco service centres
28
Payment mechanisms in Ghana: challenges ahead
1. MTN Ghana: • Decision to tie the product to MTN mobile money• MTN explicitly wanted to promote mobile money
signup/activation.• 20,000 customers and uncertain viability
2. Tigo Ghana: • Decision to go for airtime• Tigo the insurance was seen as a voice loyalty
play which has nothing to do with mobile money and sits in an entirely different team
• 270,000 paying customers
The choices reflect the different objectives the companies had with the insurance product.
29
3. Watch points in implementing technology solutions
Not use technology for technology’s sake Identify problem and then decide on a technology solution
Have a problem that technology can help solve rather than a technology in search of a problem
Technology not an end in itself- needs support to be successfully implemented
Connectivity challenges Hand held machines vs. mobile phones Process enhancements
30
Watch points in technology implementation: Smart card
Infrastructure Power Internet connectivity
Base data Enumeration can be very challenging
Manpower Basic IT skills with enrolment
Buy-in from service providers Deferred payments Pre-packaging of procedures & charges
Information and Education Campaign Localized, high-impact
Hardware Capital intensive , for the first 2 -3 years
Software Smart card -related software: enrolment, claims
transaction, ensuring data integrity for data security (India would be keen to assist)
Migrating from manual to smart card regime
31
Watch points in technology implementation: Mobile phones
Enrolment: USSD, SMS, etc. have limits – number of characters in messages, short session times, etc., so…
define what is technically needed strike the right compromises for target market, products squeeze the holistic barest essentials into as simple a number of
steps/deliverables as possible (all T&Cs in one SMS, for example!)
The fewer the steps, the better the customer experience= greater scale!
Outcome is mixed so make sure the model is aligned with the objectives and take into account market maturity and customer understanding of the product.
32
4. Concluding thoughts
Technology should be approached critically to ensure that it is not just an appendage to old ways that do not work for achieving scale; new solutions
needed
Technology is not to be viewed as a stand-alone initiative – Multiple programs can piggyback on the smart card platform and must have process synergies
Cooperation between mobile operators, intermediaries and insurance providers can result in innovative business models. It is important each organizations'
objectives are aligned to ensure higher likelihood of success
Technology can significantly impact ability to control and adapt. However, success depends on how people use technology based interventions …. amplifies both good and bad business practices
33
Technology: Improving the
enrolment experience
Presenter:Sanjay Pande
DirectorAmicus Advisory Private Ltd
Presenter:Pranav Prashad
Microinsurance OfficerMicroinsurance Innovation Facility
Presenter:Camilo Tellez
CGAP Technology and Business Model Innovation Team
Presenter:Eugene Adogla
Regional Operations Manager-AfricaMicroensure
Moderator:Jasmin SuministradoKnowledge Officer
Microinsurance Innovation Facility
4 June 2013
ON Q&A