Insurers turn to mobile money to improve performance

A fisherman displays his catch. PHOTO BY GEOFFREY SSERUYANGE 

By  Ismail Musa Ladu
 

 

In Summary

The innovation will deepen insurance uptake as it brings services closer to the people

A regional insurance firm has launched an innovation that will enable customers to make payment of premiums through a mobile handset.


If the innovation which is bench marked on the mobile (money) technology is fully embraced, analysts, including the sector regulator, say the insurance industry will undergo the same revolution that the mobile money is going through.

“This innovation will deepen insurance uptake as it brings services closer to the people,” Mr John Karionji, the chief executive officer of the Insurance Company of East Africa, said on Thursday while launching the
technology.

Low penetration
The 0.6 per cent insurance penetration ranks Uganda lowest in the region.
But with mobile money experience, currently used by about 8 million people, the regional insurer hopes to emulate the feat.

“We are looking at reaching people who previously we couldn’t reach for obvious reasons,” said Mr Karionji.

Insurance Regulatory Authority chief executive officer Ibrahim Kaddunabi, embraced the technology and asked all the insurance company to use so at to penetrate the population further.

Mr Kaddunabi said: “With the increased usage of mobile phones, insurance companies have no option but to embrace the technology,” adding the Internet based technology will not only save time but also provide convenience while transacting.

Although other telecom companies were approached, it turned out that only MTN was prepared to take the risk of being the first to initiate transaction in that regard.