Encouraging financial inclusion through technology-led microinsurance services

By Dipak Patel - Senior Manager Presales, Panamax 

The insurance industry constantly needs to evolve and address the critical needs of their existing and potential customers. As such, tailored services are the talk of the town and are highly attractive to customers. In order to encourage financial inclusion in regions such as Africa, insurance companies need to adapt and introduce an insurance that people can afford. This is where the microinsurance model can be hugely beneficial.


Understanding microinsurance
Microinsurance is an insurance that is tailored to suit the specific needs of low-income groups or the urban poor in developing economies. Saying that microinsurance will reduce poverty might sound like an overstatement, yet it's not erroneous to suggest that microinsurance would undoubtedly help those with a limited income cope with unforeseen expenses in the areas of health, property, automobiles and agriculture, amongst others. It will also aid in including more people in developing countries into the financial ecosystem.


The ramifications for businesses

First of all, businesses need to understand that this is not a CSR activity or a charity model. On the contrary, there are many business benefits tagged to microinsurance. Introducing microinsurance will help insurance services penetrate more deeply into the market and cover all those potential customers who cannot afford huge premium payments. This, in turn, generates profits for insurance companies. In addition to profits, the insurance providers can tap into a larger, more diversified risk pool and also earn a more solid reputation. Additionally, these insurance providers enjoy the 'first mover' advantage and can fortify a sustained growth in developing markets.



Driving microinsurance deep into the ecosystem using mobile finance technology

In order to facilitate sustainable growth, to include more people who actually need microinsurance into the fabric, and to tap into the emerging opportunities on the continent - innovation, agility, and collaboration are important. These should be applied to see how microinsurance can be distributed across Africa.

Distribution drives microinsurance and without it, even a high quality product is rendered irrelevant. Therefore, it is important to select a distribution channel that is appropriate for your target market. When there is the lack of proper mass distribution channels, then reaching out to people who need microinsurance can be a huge struggle.

Mobile microinsurance (MMI) is the savior in this instance. MMI is successfully used by agent-led models, bank-led models, MNO-led models and business models to run successful insurance services. While agent-led models are popular in Asia Pacific, and bank-led models in emerged markets, in Africa we have seen a surge in the popularity and success of an MNO-led model. 

The MNO-led model - A success story in Africa

MNOs in Africa lead the way to the mass adoption of microinsurance. According to The Landscape of Microinsurance in Africa report (2015), mass market channels (specifically MNOs) are common for microinsurance distribution. The report indicates that more than 200 providers from 36 countries, out of the total 52 countries in Africa, reported some kind of microinsurance activity. A total of USD 647 million was spent on microinsurance premiums. Around 5.4% of the total population was covered and about 61.9 million people were insured.

Today MNOs are not merely providing a delivery channel, they are driving MMI development. Previously, MMI was used by insurers only as a tool to expand their customer base, but today mobile microinsurance is largely used by MNOs to build customer loyalty and reduce churn in an increasingly competitive voice market.

Mobile network operators (MNOs) are taking charge, as often as the insurers. Around one-third of deployment (equal to insurers) is led by MNOs. The remaining is driven by banks, governments and third parties. Today, MNOs are actively involved in the branding, marketing and development of MMI products and establishing a front-end relationship with customers, thus playing a role that is more etched and evolved than simply being a distribution channel.

Clearly, mobile finance technology is the driving force behind deep penetration of microinsurance amongst the low-income and urban poor population. Mobile microinsurance solutions enable insurance companies to offer a wide range of services and products over mobile, with or without agent intervention. This also offers customers the convenience to choose options that will cover them, yet still not force them to pay for deductibles they will probably never use.


About Dipak Patel:



Dipak has been in the telecommunications sector for more than 10 years. He currently serves as Sr. Manager Pre-sales at Panamax. Panamax is a leading technology company offering innovative & market-proven telecom switching, carrier business automation and mobile financial solutions. Dipak has shouldered various responsibilities, in Support, Operations, Training, & Pre-sales departments in the organisation.

Dipak is passionate about mobile finance solutions, and providing expert guidance to team members, customers and partners has always been his expertise. His penchant for cutting edge technologies, together with his passion in delivering outstanding solutions, is what drives him forward.

Dipak is visiting East Africa Com as a representative of Panamax Inc. Meet him at booth number 9. You can also send him an email at sales@panamaxil.com to schedule a meeting at the event.


Webisite: www.panamaxil.com
Twitter: www.twitter.com/panamax_inc
LinkedIn: www.linkedin.com/in/dipak1432003


East Africa Com will be taking place in Nairobi between 18 -19 May, 2016.

Three ways the Globalized Network will connect businesses and communities in Africa

By Brian Jakins - Regional Vice President, Intelsat Africa

It’s no understatement to say the infrastructure of Africa is complicated. The continent’s topology, economics and regulatory environments vary by country and region – which is no minor detail with 52 countries and thousands of different ethnic groups across the continent. As a result, serving the disparate needs of enterprises, governments and communities across Africa can be a challenge for mobile providers and network operators.

This is where the Intelsat Globalized Network – with its integrated satellite and terrestrial technology, services and capabilities – enables operators in Africa to open new markets, drive new revenue streams and ensure their customers enjoy the most reliable broadband communications.

Here are just three of the hurdles facing network operators in Africa today:

• Increasing broadband demands – throughout Africa, mobile data consumption is on the rise. 
• More and more people are watching TV and videos on their mobile devices. In fact, more Africans watch videos on mobile screens than on television screens. 
• The rise of apps such as Snapchat and WhatsApp are adding to the pressure for data connectivity, putting a strain on the mobile networks.
• Increasing costs of infrastructure and management – more and more network operators are shying away from infrastructure investments. In some areas – particularly in Western Africa – a tougher economic climate is spurring operators to outsource more in order to focus on brand management, adding revenue-generating activities and shareholder returns.
• Increasing complexities – with more technologies and services coming into the region, determining the right solutions to solve communications challenges can be complicated.

Yet at the same time, there are many opportunities for network operators in the region. With terrestrial broadband coverage expanding in many African countries, high-throughput satellites (HTS), like the Intelsat EpicNG platform, will unlock new markets and applications for mobile providers. The launch of our second Intelsat EpicNG satellite, Intelsat 33e (IS-33e), slated for later this year, will bring a technological step change and commercial flexibility for our customers to address some of these challenges to meet their business needs and that of the communities they serve.

For example, remote areas of Africa don’t have the populations to justify connecting them to central terrestrial networks. However, with high-power spot beams of Intelsat EpicNG, those economies will be improved, providing internet access for previously inaccessible areas of the market. This is because the kits required to receive signals from our HTS spot beams are smaller and more portable than those necessary for connecting to wide beams, making them easier to install in remote areas. Moreover, many of these kits are solar-powered, which makes them usable in areas where power supply can be unpredictable.

With IS-33e, we can better address the domestic broadband via satellite market in Africa. Whereas today, broadband delivery is focused on a few core markets with terrestrial connections, our HTS solution will allow telcos in the different markets to offer a uniform Internet service that can serve a lot of people.

New managed services, such as our IntelsatOne Flex for Enterprise offering, help network operators stay ahead of their customers’ emerging demands. Ours is a managed service that allows regional and global providers to access and incorporate HTS into their networks, seamlessly and with great control and scalability. IntelsatOne Flex allows network operators to outsource the complex tasks of terminal installation and network integration. At the same time, they can reduce expenses by flexibly allocating bandwidth to meet surges in demand or new geographic requirements.

There is no doubt that broadband connections will expand to more African households, but to eliminate the barriers between countries, organizations and people, it takes more than just global connections – it takes a Globalized Network. With HTS and other technologies imminent, it’s easy to imagine delivering connections to mobile Wi-Fi hotspots on buses or feeding data to soda vending machines with a massive data broadcast services. In Africa, where Intelsat has acted and operated traditionally, we will remain, but we will also evolve – and make it easier for anyone to connect or work with anyone else, anywhere in the world.

About Brian Jakins:
Brian Jakins is a speaker at this year's East Africa Com and leads Intelsat’s sales activities in Africa, overseeing a sales team with offices in Sandton, South Africa, and Dakar, Senegal. He supports the growth of Intelsat’s broadband, mobility and media customers in the region and is also responsible for the design and implementation of the company’s sales strategy and business development across the continent.

East Africa Com Silver Sponsor Intelsat operates the world’s first Globalized Network, delivering high-quality, cost-effective video and broadband services anywhere in the world. Its Globalized Network combines the world’s largest satellite backbone with terrestrial infrastructure, managed services and an open, interoperable architecture to enable customers to drive revenue and reach through a new generation of network services. ways in which we live.


Visit the East Africa Com website to book your place today.
Intelsat: www.intelsat.com
Twitter: Intelsat
LinkedIn: Brian Jakins Intelsat
This article originally featured on the Intelsat blog.

Thinking outside the box with bitcoin in Africa

By Tom Jackson – Disrupt Africa

It wasn’t so long ago that “bitcoin for remittances” was the next big thing in Africa.

Yet all that is a thing of the past, as bitcoin for remittances failed to take off. Ghanaian remittances startup Beam ditched bitcoin as a payment method. Nigeria's Bitstake shut up shop. Even the much touted BitPesa, from Kenya, is moving away from focusing on remittances.

Bitcoin in Africa, then, faces an uncertain future. But there are a few companies, notably in South Africa, looking to take advantage of the existing bitcoin community – those that have already adopted the cryptocurrency – to build exciting businesses.

Disrupting digital piracy

Founded by staff at Stellenbosch University and based at the LaunchLab, Custos MediaTechnologies is looking at bitcoin in a very different way.

The startup employs bitcoin bounties as a means of cracking down on piracy of various types of digital media, with Custos currently focused on producers of videos and movies. It embeds bitcoin bounties as watermarks within videos, which can still be watched normally.

If the media passes out of the control of the intended recipient – usually a reviewer offered a pre-released version of the movie – there is a small bitcoin reward that can be collected by one downloader using a free tool. Custos sees this transaction on the blockchain, and informs the media owner, who can then take whatever action they see fit.

Co-founder G-J van Rooyen says that he had seen the potential for bitcoin to do much more than provide an alternative form of finance.

“Cryptocurrency provides a very attractive way of providing an incentive to media recipients to stay honest,” he said.

The need for a solution like Custos is huge. One of Custos’ clients makes movies, and has previously suffered losses prior to box office after sending advance copies to reviewers. It happens to bigger companies too. Last year, Expendables 3 leaked in advance of release, costing the studio behind the film US$10 billion.

“Especially for smaller organisations it can be devastating, they might not be able to recoup their investment,” van Rooyen said.

Investors agree. In January, Custos raised funding from Innovus Technology Transfer, the industry interaction and innovation company of Stellenbosch University, while in April it clinched a second round seed of investment of just under R4 million (US$265,000) to allow it to reach out to high-risk media producers.

Bitcoin for crowdfunding

All of a sudden bitcoin for crowdfunding is a big thing. This can be seen with The Sun Exchange, which is a peer-to-peer lending platform that connects people wanting to invest in solar energy with projects. Founder Abraham Cambridge says the startup was a middleman between potential funders and projects, using bitcoin as a way of making effective remittances.

So remittances still lives in the bitcoin space. But The Sun Exchange is not so much about persuading new people to adopt bitcoin to send money, but tapping into the existing bitcoin community.

“The international bitcoin community wants to fund solar energy,” Cambridge says. “The bitcoin community is used to innovative tech, they are used to the risk, as they are already exposed to volatility. They are also interested in money and doing cool, world-changing stuff.”

 

The Sun Exchange is putting a different slant on already existing bitcoin crowdfunding models. Last year, Cape Town-based social impact incubator RLabs launched mToto, which allows users to donate to projects, focused on the early childhood development (ECD) and education sectors using cryptocurrencies.

mToto allows users to donate bitcoin to a number of projects listed on site, with RLabs founder Marlon Parker telling Disrupt Africa the organisation was looking to help activate ECD projects on the continent by tapping into the power of the blockchain community.

Once donations are made, mToto converts bitcoin into cash and funnels it to the projects in question, with Parker saying RLabs hoped to raise direct bitcoins for around four ECD projects per month.

Another South African company working in the same space is Bankymoon, which has launched a crowdfunding platform that allows public schools in Africa to use blockchain technology to gain electricity credits.

Bankymoon is a bitcoin integration startup that primarily focuses on providing bitcoin payment gateways to smart metering vendors, allowing the vendors to accept bitcoin payments for utilities.



This idea has now extended this idea to create a crowdfunding platform named Usizo for schools in Africa. Schools are supplied with a Bankymoon meter with an assigned bitcoin address, to which donors are able to send funds that are immediately converted into electricity or water credits.

Donors are able to view information about students, teachers, infrastructure, focus and estimates of utility usage at certain schools, and make decisions as to who to donate bitcoin to.

Lingering hope

So there is still life in the old dog yet. Though Gilles Ubaghs, financial services analyst at Ovum, says bitcoin is still too complex to explain to many people and thus has not seen sufficient uptake to be relevant in remittances, he says there is still room for bitcoin to take off in ways it was not originally expected.

“A few years or even months ago the talk was of using bitcoin as a total replacement for standard currencies. That looks increasingly unlikely anytime soon, as it is still too complicated for most people,” he said.

“But bitcoin as a service, as a means to send money, or build other services on the bitcoin blockchain network, is showing huge growth and development at quite a staggering pace. Bitcoin won’t replace existing money, but it might just replace the existing infrastructure.”


About Tom Jackson:

Passionate about the vibrant tech startups scene in Africa, Tom can usually be found scoping out the continent's most exciting new companies and entrepreneurs, funding rounds and any other developments within the growing ecosystem. He is co-founder of African tech startups news site Disrupt Africa and is based out of Cape Town, Nairobi and Lagos. Tom was a speaker at last year's AfricaCom as well as a Com World Series media partner.



Website: Tom Jackson
Disrupt Africa
Twitter: Tom Jackson
Disrupt Africa
LinkedIn: Tom Jackson
Disrupt Africa

Stay connected with SES at East Africa Com 2016

The vital role of technology and innovation in both the telecoms and Information Communication and Technology (ICT) sectors goes without saying. In Africa, making technological strides are especially pertinent due to the  continued issue of connectivity on the continent. One of SES' commitments is to ensure various audiences stay connected through its satellites, which enable over 317 million homes to receive 7,200 satellite TV channels (including 2,200 HD channels). 

“SES has over 30 years of experience in providing high quality video broadcasting services. Our commitment to the sector is not only through our products but also through our training programmes – most notably Elevate which has seen us empower over 5,000 candidates with the skills and equipment to improve broadcast services – the training also provides essential skills about how to run your own business,” says Ibrahima Guimba-Saidou, SES Senior Vice President of Commercial Africa.   

SES’ commitment to the industry is further emphasized through its sponsorship of industry events such as East Africa Com. Industry events play a key role in the broader eco-system of our business, as they provide a central place for leaders and decision makers to interact, connect and discuss. They also give those in the industry the opportunity to meet with their colleagues and peers and exchange dialogue to advance their respective areas of expertise. 

“Our services change lives on a daily basis, even though an end user may not be aware of the direct impact of SES’ product suite. We encourage all our peers in the industry to attend events such as East Africa Com where they will be able to meet our team and engage with them meaningfully,” concludes Ibrahima.    

 

This year sees SES sponsor East Africa Com – which takes place from the 18^th to the 19^th of May 2016 at the Radisson Blu Hotel in Nairobi, Kenya. The event started 12 years ago and remains a highlight on the calendar for recognizing the key challenges for rural telecoms, reducing the costs of 3G networks and boosting data usage.

Ensure you secure your meeting with our team representatives at East Africa Com by booking some time with them, simply click SES Africa.   

Website: http://africa.ses.com/6854664/africa-en

Twitter: www.twitter.com/SES_Africa 

To register for East Africa Com 2016 click here.

 

 

How customer onboarding can help maximize service delivery to millions of unbanked

With an estimated 2.5 billion unbanked people and an exponential growth of mobile phones and smartphone users, extending the reach of financial offerings, such as payments, transfers, insurance, savings, and credit, to the under-served makes more sense than ever. That's the wonderful world of mobile money.

But a bad registration and onboarding process simply blocks it if:

• You don’t map your clients, you’re not compliant. 
• You’re not compliant you’re not allowed to operate in the market.
• You're not compliant and you operate in the market, you can receive extremely high fines and penalties from the regulator. 
• You don’t have a good KYC (Know-Your-Customer) process, you are also very limited in terms of the transaction model and miss upgrade and upsell opportunities.

What do you need to take full advantage of mobile money? Download our latest eBook and discover Mobile Money: How customer onboarding can help you maximize service delivery to millions of unbanked.

The facts

According to the World Bank, approximately 2.5 billion people worldwide do not have a formal account at a financial institution. Access to affordable financial services is linked to overcoming poverty, reducing income disparities, and increasing economic growth. The World Bank’s Global Findex database found that 3/4 of the world’s poor are considered unbanked, meaning that they do not have a bank account. This is a staggering number that includes 59% of adults in developing economies, 77% of adults earning less than $2 a day, as well as 11% in high-income economies.

The Global Findex reveals that 16% of adults in Sub-Saharan Africa have used a mobile phone to pay bills and send or receive money in the past 12 months. It also shows that mobile platforms can help historically unbanked regions gain financial access, as 1/3 of adults state that the cost of opening and maintaining a bank account is too high, and that bank agencies are just too far away. Actions must, and are, being taken to address this situation, ensuring a global effort for financial inclusion, thus creating a world of opportunities.

eBook target audience

This eBook looks to support MNOs (Mobile Network Operators), mobile money service providers and banks operating in unbanked regions or wanting to enter this market to deliver an expanded service offering. These providers and banks are looking for answers to the main issues regarding mobile money, while guaranteeing top level compliance with existing regulations. Without such knowledge of compliance and other regulations, MNOs, mobile money service providers and banks will not only find it challenging to acquire new customers respecting compliance, but also find it a nightmare to upgrade or upsell to existing customers. In effect, not taking advantage of the environment's full potential.

Count on Papersoft to support your mobile journey towards a paper-free, legally compliant and high-revenue company.

About Papersoft

Papersoft is a 15 year old company that has been developing its activity on document management processes including capture, mailroom and scanning, extraction and automation, digital and physical archive. 

They are currently investing in developing new market solutions focused on streamlining document management processes, providing an automate and secure environment and giving clients control over their information assets and added value to their businesses. 

Papersoft has currently more than 300 employees working in several countries and has already established business in Portugal, UK, Romania and Democratic Republic of Congo. 

Their mission is to help their clients organising, preserving and adding value to their information assets while enriching and streamlining their business processes and decision making, giving them a true and sustainable competitive advantage. Their vision is to become a reference enterprise in documents and information management field, a trustful, flexible, open and knowing partner, with innovative and secure solutions, capable of adding value and reducing the risk for our clients’ businesses.

Papersoft is a silver sponsor at this year's East Africa Com, from the 18 -19 May at the Radisson Blu, Nairobi. Visit them at stand 6.

Website: www.papersoft-dms.com
Twitter: twitter.com/Papersoft_dms

Catch up with Eva Sow Ebion - CTIC Dakar

Eva Sow Ebion
Business Development Manager
CTIC Dakar

A member of incubator CTIC Dakar since 2012, Eva Sow Ebion's role as Business Development Manager is to build strong companies and champions of tech innovation in Senegal. She shares her experience and views in a few questions.

West Africa Com: Describe your experience and your role within CTIC Dakar

Eva Sow Ebion: I joined CTIC Dakar 4 years ago. First as a Business Developer, I contributed to the development of different products on the market by strengthening enterprises’ marketing and commercial strategies.

Then as a Communication & Marketing Manager, I worked to enhance the image and reputation of CTIC Dakar within our ecosystem, our partners and the community in particular through the organization of some 50 tech events in order to identify shining talents of digital and share the vision of the incubator. Also in partnership with local and international media, I accompanied the companies in the development and implementation of communications strategies.

Today as Business Development Manager, I support the companies incubated in terms of strategy for a more effective growth with the challenge of providing the besy structure for the companies at CTIC.

In this context, I guide incubated companies in their strategic thinking, their development plans, their business approach and implementation and evaluation of strategies developed.

WAC: What is the biggest challenge that you or your organization face this year?

ESE: First, the extension of CTIC’s offices to an additional 1000m2 space and then, CTIC’s position as the Hub dedicated to innovation, entrepreneurship and ICT. This year is for us a Pan-African year, especially with two new sub-regional programs, The Jambar LAb Tech, in partnership with the World Bank, and Waziup (IOT) in partnership with the European Union and a consortium of 12 European and West African partners.

WAC:  What are the most significant activities or news in your market at present?

ESE:

• The boom of E-Commerce
• Awareness around Big Data
• The incredible potential of the Internet of Things in rural areas
• The establishment of incubators in universities and main colleges across the country.

WAC: In your opinion, what product or service will have the greatest impact on market development in West Africa in the coming years?

ESE: Without hesitation, big data.

WAC: What do you expect from your participation in West Africa Com this year?

ESE: To highlight innovation, provide visibility to entrepreneurs in Francophone Africa and to meet and network with exceptional and renowned stakeholders.

WAC: Outside the conference, what do you recommend visitors to do during their stay in Dakar?

ESE:

• Spend an afternoon on Gorée Island and visit the House of Slaves
• Enjoy braised chicken at La Calebasse (Restaurant)
• Visit the Ile de la Madeleine and enjoy a boat ride
• Enjoy Orchestra while having a drink at the French Institute of Bideew

Eva will attend West Africa Com in June as moderator of the entrepreneurship panel in the Innovation Forum, organized in partnership with CTIC.