MicroSave Briefing Note 160: Loyalty-based Mobile Insurance: Is Design Aligned to Business Objectives?
Mobile insurance (the mechanism of delivering insurance products through mobile devices) has reached an impressive scale of more than 10 million clients in last 2-3 years. Most of the outreach, however is contributed by loyalty based mobile insurance products, where a telecom operator pays premium on behalf of its clients to augment their usage and/or loyalty. Many argue that mInsurance should follow a gradual progression curve where a client graduates from such loyalty insurance to freemium and finally to a voluntary/fully paid insurance platform.Though the enthusiasm is understandable, there is increasing concern that such products are dependent on the business model and marketing priorities of MNOs. For loyalty insurance to sustain, therefore, it is imperative to understand and align the product/s to strategic objectives of MNOs in different markets and countries. In this Note, we discuss shifting strategic objectives of telecom operators / mobile network operators (MNOs) and how mobile insurance can be customised to suit to their needs.