In July 2012, Old Mutual Kenya (OMK), a Nairobi-based investment subsidiary of UK-based Old Mutual Group, launched i-Invest, a platform that offers investment products that can be purchased via M-Pesa, a service of a Kenya-based mobile operator Safaricom. Since that time, those aged 25 to 34 years have made up 53 percent of i-Invest subscribers. 25 percent are between the ages of 35 to 44 years; while another 14 percent are aged 18 to 24 years.
The i-Invest service allows subscribers to use their mobile phones to open unit trust accounts with as little as KES 1,000 (USD 12) and to invest additional amounts as small as KES 500 (USD 6). Customers can invest in four funds: (1) Old Mutual Equity Fund, which invests in high-risk shares; (2) Old Mutual Bond Fund, which invests mostly in government and corporate bonds; (3) Old Mutual Balanced Fund, which invests in a mix of bonds and equities; and (4) Old Mutual Money Market Fund, which invests in safer instruments. Old Mutual Group reports managing GBP 262 billion (USD 403 billion) in assets with customers in approximately 20 countries.
In September 2011, UAP Kenya, a financial services company with operations in Kenya, Uganda and South Sudan, launched a mobile insurance platform via M-Pesa. Through its UAP Insurance division, it offers Salamasure, a personal accident policy covering injuries and loss of life. Subscribers can enroll and purchase insurance with monthly premiums as low as KES 200 (USD 2.38) via mobile phone. The service also allows for customers to report claims via mobile phone. After a medical deductible of KES 1,000 (USD 12) is paid by the insured, all claims above that amount are settled by UAP. In the event of loss of life, UAP covers at least KES 100,000 (USD 1,190). At the launch of Salamasure’s, James Wambugu, managing director of UAP Insurance, was quoted as having said, “The use of the mobile phone platform to sell insurance is revolutionary and is going to be a game changer in the industry. It will definitely change the insurance landscape in Kenya and across the world. A huge number of Kenyans can now conveniently and cheaply take up cover.” As of December 2011, UAP Insurance reported total assets of KES 7.7 billion (USD 92.4 million).
By Jennifer Young, Research Associate
About Old Mutual Group:
Founded in 1845 and based in London, Old Mutual Group (OM) offers savings, insurance and investment services. OM specializes in three business areas: (1) wealth and short-term insurance in emerging markets; (2) US asset management; and (3) banking in South Africa. As of December 2012, OM manages funds amounting to GBP 262.2 billion (USD 403.1 billion) and unit trust and mutual funds amounting to GBP 10.8 billion (USD 16.6 billion) and serves 14 million customers in approximately 20 countries.
About UAP Insurance Limited:
UAP Insurance Limited is an insurance provider based in Nairobi, Kenya, that operates in Kenya, Uganda, and South Sudan. It was formed in 1994 from the merger of Union Insurance and Provincial Insurance. The company’s products include commercial, life, travel, corporate medical and political violence and terrorism insurance. Additionally, along with Equity Bank, a commercial bank in Kenya, UAP Insurance has launched a program that incorporates satellite technology to provide herders with insurance for their livestock in the event of drought and subsequent starvation. As of December 2011, UAP Insurance reported total assets of KES 7.7 billion (USD 92.4 million).
About M-Pesa:
M-Pesa is a Kenyan mobile money service. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in 2007 by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British multinational mobile network operator. As of September 2012, M-Pesa serves approximately 19.2 million clients through 45,540 agent outlets. M-Pesa handled an estimated 2 million daily transactions as of October 2012.
Sources and Additional Resources
Standard Digital Story: “Phone Applications Spurn Revolution in Insurance Sector”
http://www.standardmedia.co.ke/?articleID=2000079554&pageNo=1&story_title=Phone-applications-spurn-revolution-in-insurance-sector
MicroCapital Story: “MICROCAPITAL BRIEF: Safaricom, Vodafone, Commercial Bank of Africa Launch M-Shwari, Offering Mobile Access to Savings and Loans in Kenya,” December 3, 2012.
https://www.microcapital.org/microcapital-brief-safaricom-vodafone-commercial-bank-of-africa-launch-m-shwari-offering-mobile-access-to-savings-and-loans-in-kenya/
MicroCapital Story: “MICROCAPITAL BRIEF: YuMobile, MicroEnsure, Jubilee Insurance Partner to Offer Life, Disability Insurance to Mobile Subscribers in Kenya,” October 13, 2012.
https://www.microcapital.org/microcapital-brief-yumobile-microensure-jubilee-insurance-partner-to-offer-life-disability-insurance-to-mobile-subscribers-in-kenya/
MicroCapital Story: “MICROCAPITAL BRIEF: MicroEnsure Ghana to Launch Credit Health Insurance for Microfinance Clients,” March 8, 2012.
https://www.microcapital.org/microcapital-brief-microensure-ghana-to-launch-credit-health-insurance-for-microfinance-clients/
MicroCapital Story: “MICROCAPITAL BRIEF: MicroEnsure, Tigo, Milvik, Golden Crescent to Deliver Tigo Bima Microinsurance Product in Tanzania,” November 9, 2011.
https://www.microcapital.org/microcapital-brief-microensure-tigo-milvik-golden-crescent-to-deliver-tigo-bima-microinsurance-product-in-tanzania/
MicroCapital Story: “UAP Insurance Limited, Syngenta Foundation, Safaricom Launch “Kilimo Salama Plus” to Include Crop Microinsurance,” March 3, 2011.
https://www.microcapital.org/microcapital-brief-uap-insurance-limited-syngenta-foundation-safaricom-launch-kilimo-salama-plus-to-include-crop-microinsurance/
MicroCapital Universe Profile: M-Pesa
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=M-Pesa
MicroCapital Universe Profile: UAP Insurance Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=UAP+Insurance+Limited
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