Delivering Insurance through Mobile platform.

UAP INSURANCE KENYA

Outline

Overview of Insurance & Mobile technology in Kenya

SalamaSure – Personal Accident

Key Successes

Challenges experienced

AfyaImara – Health – Medical Insurance

Lessons learnt and Key Insights

Insurance)penetra,on)in)select)countries:)

Source:(Finscope,(2009,(2010,(2011,(2012(

%"of"a

dults"

30%

62%

5%

36% 43%

22%

7%

25%

4%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Without Cover

Highest)levels)of)cover)

Lowest)levels)of)cover)

Survey Findings - Understanding the Uninsured market( AKI SBO research report)

Reasons for lack of insurance cover to the Uninsured Market Segment

•  Low awareness ,availability •  Product Structure - Innovations •  Channels of Distributing

insurance. •  Poor public Image

Needs of the Uninsured 1.  Hospitals bill 2.  Funeral & Social expenses 3.  Life assurance

Recommendations

•  Increase Awareness on Insurance. – Testimonial, reinforcement advertising.

•  Viable and Cost effective distribution channels.-

•  Affordable premiums •  Innovation in product &

channels / design •  Research & Development

ICT( mobile tech) versus Insurance

Insurance

Insurance penetration is at 7.0%

Initiatives such as improved regulatory

framework, innovative products, adoption of

alternative distribution channels, enhanced public

education and use of technology have

contributed to the improved penetration level

in Kenya.

Mobile phone penetration in Kenya

As at 30th Sept 2012, the number of mobile telephone subscribers

was at 30.4M.

Mobile telephony penetration stood at

77.2% of total population

The ICT sector continues to grow thus need for FS sector to leverage on ICT

UAP SALAMASURE PERSONAL ACCIDENT COVER

SalamaSure Personal Accident cover

An insurance cover that

compensates in the event of an

injury or loss of life resulting from

an accident

Scope of Cover.

Accidental loss of life.

Accidental permanent total disability.

Medical expenses incurred as a result of accidental injury. Payment of a final benefit for purposes of organizing funeral expenses.

Cost of artificial appliances.

Accessing the Salamasure Cover

• View Cover Options

• Register & Purchase Policy

• Report a Claim

• View Account

Dial *827# from your Safaricom

line

Successes

The product has gone full cycle i.e. registration, premium payment and claim settlement.

This innovation has taken UAP brand a notch higher in the industry.

Won an award in Cape Town – on technology innovation in insurance

Product works – the design worked and expected results achieved

Product Development

Institutional assessment – MI is a key area that UAP is keen to pursue especially with the great success with Agriculture MI Kilimo Salama & Livestock, in line with our Vision.

Market Research – Ref. SBO, FSD Kenya and we conducted other surveys on demand, distribution, Personal Accident on mobile phone platform

Prototype design & testing- we realized that one option was over priced and we reviewed pricing

Product design – Simple, Understandable, ACCESSIABLE, Valuable & efficient – Our experience & feedback was that the product met the threshold and ready for pilot testing

Cont.

Pilot testing – we tested with 135 staffs and 250 customers of varied age groups, the experience in registration, cover choice, purchase was awesome however, making a payment was not simple, and many would lapse there, we negotiated with the MN operator to integrate the SS with Mpesa and they agreed however this delayed rollout for 5 months till completion and its pilot testing of the payment integration

Roll out –We rolled out countrywide, did a lot on Marketing and activation, we had over 500,000 hits within the first month of launch and 312,000 successful policy. More uptake occurred when sales campaigns were on going and uptake reduced drastically when no campaign was ongoing. The USSD Code had limitations, several hops causing drop out, Uptime limited to 2 mins not sufficient, limitation to one MNO. Recommendations./Action taken increase time limit to 3 mins, Create more appealing user experience, after time out, customer will get back to where he had reached. System integration with Mobile Network Operators (MNO) for automatic renewal, Bulk sms services, Integration of the mobile platform with UAP CRM – will enable a 360 degrees view of the customer across the platform, Embrace technological solution that overcome USSD code shortcomings, Developed an app – a UAP app easily reached on phone main menu, Maintain USSD Code for customers without smart phones.

Cont.

Continuous assessment . We continue to monitor and action as per product lifecycle stages. Challenges - Insurance awareness still low and low trust in insurance by customers. Recommendations / action – started consumer education program and Insurance Info center, . We continue to invest in market needs research, remain innovative in products and channels. Currently rollout of products & processes in web portal, Mob App, starter pack

Activations

PICTORIALS

SalamaSure 1st Claimant SalamaSure 1st Claimant and his wife

AfyaImara

Kenya Internet Penetration Number of Kenyans Online Grew by 15% in 2012

AfyaImara – HEALTH INSURANCE

AfyaImara

Affordable health insurance solution catering for both inpatient and outpatient expenses at eligible

providers. AfyaImara is the first product in

the Kenyan insurance sector to be offered via mobile app and web

platforms.

It is currently available on Android platforms.

Scope

Costs of active treatment(disease, illness or injury)

Hospitalization expenses including surgeon,

physician, theatre, ICU & HDU fees

Diagnostics and physiotherapists fees, prescribe cost of medicines

AFYAIMARA – HEALTH INSURANCE - Distribution

!  AfyaImara is the first product in the Kenyan insurance sector offered via mobile app and web platforms.

!  It is currently available on Android platforms.

https://play.google.com/store/apps/details?id=com.uap.afyaimara.ke

•  Digital Marketing

•  Facebook Boost post Promote Page •  Twitter Promote Handle •  Google Search Display

•  Media House Sites Display Banners on popular media house sites

Promotion platforms – Social Media

AfyaImara Launch – Digital Expo

Experiential – Web portal Mobile App

STARTER PACK

INSURANCE MADE SIMPLE!

Where you can buy a starter pack.

Distributing agent / vendor

Supermarkets/stores

Business Financial Agents/ e.g.-op kwa Jirani shops, KCB Mtaani Kiosks Golf Clubs & sports shops

Cell phone companies & Mobile money operators shops

Garages & service stations/Petrol stations & any other retail outlets

Key Insights

1.  Technology)adop,on)is)very)high)in)Kenya)and)creates)immense)opportunity)for)Innova,on)in)Insurance)solu,ons).))

2.  StressAtes,ng)the)marke,ng)plan,)systems)and)processes)before)a)market)launch)is)important).)

3.  Appropriate)visuals)(presence))and)messaging)are)key)to)persistency)4.  Freedom)and)convenience)of)paying)premiums)at)own),me)and)leisure)must)

be)balanced)with)incen,ves)that)encourage)purchase)5.  Iden,fying)appropriate)distribu,on)channels)requires)A)nonAconven,onal)

approach)6.  )Distributors)expecta,ons)must)be)matched)with)delivery)especially),mely)

remunera,on,)transparency)and)constant)feedback.)7.  Heavy)ini,al)below)and)above)the)line)ac,va,on)necessary)to)create)and)

maintain)interest)–)Be)ready)to)spend!)8.  Close)performance)monitoring)in)all)the)areas)a)key)success)factor)

Automation

Product Development

Alternative Distribution Channels

Questions?

Innovation: UAP Insurance Co.

UAP, Bishops Garden Towers, Bishops Road, PO Box 43013-00100, Nairobi, Kenya. Tel 285000, Fax 2719030, E-mail uapinsurance@uapkenya.com

www.uapkenya.com