MicroEnsure, a subsidiary of US-based microfinance network Opportunity International, has teamed up with mobile phone operator Tigo Tanzania and microinsurance service provider Milvik to offer Tigo Bima, a new microinsurance product being offered to Tigo clients in Tanzania. The project aims to reach a large segment of the Tanzanian population while building trust in insurance and understanding of its benefits [1].
Tigo Bima is free for customers meeting a minimum monthly requirement of airtime use, which is currently set at TZS 5,000 (USD 2.80) [2]. The level of coverage, which increases with greater mobile phone use, is based on the previous month’s usage, the amount of which is communicated via text message at the beginning of each month. The insurance covers the client and one family member against loss of life due to accident or illness [1].
Tigo representative Joe Bendera reportedly said, “Tigo Bima has already received a lot of positive feedback from our customers and we are convinced this benefit will be very popular, giving people one more reason to be on our network.” [1]
The first two insurance claims amounting to TZS 600,000 (USD 337) and TZS 800,000 (USD 449) have recently been paid out to beneficiaries. The company endeavors to pay claims within 72 hours upon receipt of documentation of a covered event [2].
The product is underwritten by Tanzanian insurance company Golden Crescent, which has a total paid up capital of TZS 1.1 billion (USD 621,000). Training and administration are provided by MicroEnsure and technical support is provided by Milvik [1]. Milvik also works with Tigo in Ghana, where a similar mobile microinsurance product has been released [3]. Financial information on Milvik is not available.
By Kristha Abores, Research Associate
About MicroEnsure:
MicroEnsure was founded in 2005 in the UK as a wholly-owned subsidiary of Opportunity International, a US-based nonprofit microfinance network created in 1974. It was known as the Micro Insurance Agency until 2008. As an insurance intermediary, it provides a range of products including health, life, property and weather index-based insurance to approximately 3.5 million poor clients in Ghana, India, Bangladesh, Mozambique, Malawi, the Philippines, Tanzania and Kenya as of 2011.
Sources and Additional Resources:
[1] “M-Insurance Expands to Tanzania”, http://microensure.com/news.asp?id=148&utm_medium=email&utm_campaign=New…
[2] “Insurance claims paid by handsets “, http://thecitizen.co.tz/business/13-local-business/16661-insurance-claim…
[3] “Making a difference”, http://milvik.se/?page_id=12
MicroCapital.org article, September 27, 2011, “MICROCAPITAL BRIEF: MicroEnsure to Offer Microinsurance in Kenya Using M-Pesa, FrontlineSMS:Credit Technology”, https://www.microcapital.org/microcapital-brief-microensure-to-offer-micr…
MicroCapital.org article, May 19, 2011, “MICROCAPITAL BRIEF: World Vision Tanzania, MicroEnsure Partner to Launch Agricultural Microfinance Loans Bundled with Weather Index Insurance”, https://www.microcapital.org/microcapital-brief-world-vision-tanzania-mic…
MicroCapital.org article, May 17, 2011, “MICROCAPITAL BRIEF: MicroEnsure, PharmAccess Foundation Launch Health Microinsurance for Coffee Growers in Kilimanjaro, Tanzania”, https://www.microcapital.org/microcapital-brief-microensure-pharmaccess-f…
MicroCapital.org article, April 19, 2011, “MICROCAPITAL BRIEF: Mobile Telecommunications Network (MTN) Ghana, Hollard Insurance, Mobile Financial Services (MFS) Africa, MicroEnsure Pilot “mi-Life” Mobile Money Insurance Product in Ghana”, https://www.microcapital.org/microcapital-brief-mobile-telecommunications…
MicroCapital Universe Profile: MicroEnsure, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroEnsure
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Universal Insurance Launches Mobile App, Referral Platform in Nigeria
- MICROCAPITAL BRIEF: DreamStart Labs Adding VisionFund as Preferred Financial Service Provider in Savings Groups App DreamSave
- MICROCAPITAL BRIEF: David Grimaud Named CEO of Palladium Group’s Bamboo Capital Partners
- MICROCAPITAL BRIEF: Verdant Capital Hybrid Fund Lending $9m to LOLC to Finance MSMEs in Africa
- SPECIAL REPORT: Save the Date for SAM 2023 – African Microfinance Week – in Togo, October 16-20!
