ICT 4 RBF

28 Avril – 01 Mai 2014

Bujumbura, Burundi

Mobile Payment : Case study of

health insurance premiums

collection by mobile phone

Outline

• UTM and health insurance management

• Challenges and opportunities

• M-Payment Project

• Lessons learned

• Looking forward

UTM and Health Insurance

Management

UTM : federation of around 100 Community-based

Health Insurance schemes

• whose 20 share an unified health insurance management

platform

• Adherance by familly, voluntary enrollment

• 90.000 people insured

• 110 empanelled health facilities at sanitary pyramid

(community health centers …… -> Hospitals)

Challenges and opportunities

• Vast areas to be covered (size 1,2 million km2)

• Low population coverage (less than 10% of total pop is

registered)

• Low premium recovery rate (less than 60% of premium to be

paid)

• Limited commercial persons (less 50 recovery agents for

whole UTM)

Challenges and opportunities

• Management skills quite well developed internally (HR and

infrastructures)

• 2 operators exist, there is a large territorial coverage

• More than 75% de la population using mobile phone

M-Payment Project

Context • 2011 : Study visit in Kenya along a JLN’s meeting and cross-learning

about M-Pesa at NHIF

• Go back to country and writing a concept note on mobile payment

project with goal to improve premiums recovery rate

Business model

– Building an innovative accessible solution enabling premium’s payment by mobile

phone (without commercial person’s intervention and without constraint on schedule

of payment or amount)

– Free Service to insured (charges supported by UTM)

– project financed with generated revenues from increasing premiums collection

M-Payment Project

Context

• Starting negotiation with mobile operator Orange

• Provided solution ill-adapted (impossibility to initiate opened

payments)

• So obliged to wait for a new version of their cash transfer

(Orange Money) management application (1 year delay)

M-Payment Project

First step : separated development

• UTM : modifying our core business management application

– Daily file extraction containing member’s Id

– Secure transfert to mobile operator

• Orange : modifying it cash transfert management

application

– Enable user’s payment with authentification based on received data

from UTM

– Debit member’s account / Credit UTM’s account

– Establish daily statement

M-Payment Project

Second step : interoperability configuration

• SFTP : secure file transfert protocol – Account + Password

M-Payment Project

Second step : interoperability configuration

M-Payment Project

Second step : interoperability configuration

M-Payment Project

Third step : implementation

• Starting up : Pilot phase with free charge during 6 months

• Member's sensitization par the mobile phone operator – SMS mailing (2 types of message, for cash transfer's subscribers and none)

• Information for others members who are not registered at

Orange

– Call and SMS

M-Payment Project

Service utilization

M-Payment Project

Service utilization

M-Payment Project

Service utilization

Lessons learned

• Establishing an agreement with a network service provider

(too long negotiation delay, strong argumentation needed)

• Designing a product for the end users (flexible payment

options)

• Developing interoperable IT systems (customized IT platform

for secure file exchange, member enrollement as new

subscribers to the Orange Cash program)

• Sensitizing users to mobile money (notify each member

about the new mobile money application, own staff training

on the mobile money application and how to be new users

of Orange Cash)

Looking forward

• E-enrollment

• Development of cobranding services and tools

• M-Payment for contracted providers

Merci