From India to Tanzania – leveraging collaboration on Microinsurance
Micronsure, an Indian-based Insuretech firm, announced a partnership with Acclavia, a Tanzania-based insurance distribution company, to provide digital solution for microinsurance products in the Tanzanian market.
The Insurance Management System developed and implemented by Micronsure enables microinsurance transactions to be executed completely online and paperless. It involves the complete digitization of all processes, including customer onboarding, sales, claims servicing, Policy Management services, training, revenue Management, and Management Reporting and all related activities, at both the customer and the insurance company ends.
In partnership with Acclavia, Micronsure will tweak their insurance management system to adhere to the regulations in Tanzania and eventually deliver paperless microinsurance solutions for low-income households and groups in the country. The collaboration seeks to combine Micronsure tried and tested technology with Acclavia’s specialised microinsurance products, knowledge of the market, contacts and understanding of regulations in Tanzania, to further develop the local microinsurance market.
What has been successfully set up in India, for supporting microinsurance solutions, will now be transferred to the Tanzanian market and eventually other countries in Africa.
Over the last year, Micronsure has introduced its “Insurance Management System” to around 50 institutions in the region, including small rural banks, non-banking financial services companies, trusts, community-based organisations and other entities working in the microfinance space. Through these institutions, Micronsure has been able to provide life, health, personal accident and other products to more than 1,25,000 customers.
This has helped both the companies and their customers in the following ways:
- The companies are able to offer affordable insurance plans to their customers.
- The entire insurance value chain is digitized and there is no manual intervention.
- All policies are issued online with no paperwork.
- The policies are issued instantly and are communicated to the end customer through SMS and email.
- The entire Insurance Management, including servicing and revenue management, is now at the fingertips of the companies.
For the customers:
- Trust is enhanced as the policy is being issued across the counter.
- The premium ticket sizes ranging from Rs 10 (75 cents) to 999 Rs (10$) suit the customer base.
- No paperwork reduces waiting times and enhances easy coverage.
- Claims servicing and Policy Management services are also digitized, hence, turnaround times for claim settlements have reduced drastically from 3-4 weeks to around 7 days.
As a result of implementing Micronsure’s digitized platform, companies have been able to earn more revenues from the insurance business, with some of the companies, for example, reporting 500-600% business growth in a year.
The startup supports the B2B and B2C sector for insurance solutions, by setting up the technical side of insurance solutions. First, by assisting with an adjustable software that can be tailored to the solution needed. Afterwards, Micronsure’s support continues with training opportunities online, to set up the distribution network for the new insurance solution. Once distributors have learned how to access the solution, the outreach to customers can start.
The technology provided by Micronsure also strongly supports the customer. The claims management in case of losses is also set up fully virtual. All queries, requests, complaints and any policy management issues are fully digitized as well.
No paperwork needed and an all-in-one solution – this is what and how Micronsure scales up opportunities in the field of microinsurance.
The introduction and usage of technology has reduced the cost of distribution drastically and, in turn, the insurance companies are able to pass on the benefits to the customers in the form of reduced pricing or extended benefits.
In collaboration with Acclavia, Micronsure will offer a range of products in life, health, personal accident, householder, shopkeeper policies and products on pensions and savings, all within the microinsurance space.
As part of Acclavia Group, Acclavia Insurance Brokers focuses on providing cost-effective insurance solutions and risk management strategies to individuals, groups and corporate, working with partners from within and outside Africa. Acclavia has a team of insurance experts highly experienced in microinsurance solutions with various background including product development, regulation, actuarial science and strategy. The team is described as young, vibrant, friendly and gender sensitive.
In Tanzania Insurance Awards 2019, the company was second runner-up the Insurance Awareness of the year and was voted the most innovative product of the year.
N.B. This article is a blog contribution from Micronsure .