25.03.2011 Business & Finance

MTN and Hollard Insurance Group pilot mobile money insurance in Ghana

25.03.2011 LISTEN

March 24, 2011
Accra, March 24, GNA - The MTN Group and an international insurance group, Hollard Insurance, have partnered to pilot mi-Life, the world's first mobile money life insurance service which is initially being made available via MTN Mobile Money in Accra. .

"mi-Life provides MTN Mobile Money customers the opportunity to buy affordable life insurance with the convenience of being able to manage that insurance via their handsets.

Customers will be able to submit claims, queries and make their premium payments using their handset," said Bruno Akpaka, General Manager Mobile Money in Ghana.

A statement issued in Accra on Thursday said the partnership between a major mobile operator and insurer will also ensure that the cost of insurance is dramatically reduced.

"mi-Life is designed to meet the growing demand for insurance services across developing markets," the statement added.

It quoted a Lloyds study in 2009 which said "the market for efficient, cheap and simple insurance" in developing countries is estimated to be between 1.5 and three billion policies.

"The ubiquity of mobile and strength of the MTN brand makes Mobile Money the ideal platform to deliver financial services in Africa."

Mr Pieter Verkade, Mobile Money Executive, MTN Group, said: "Buying insurance through your phone is yet another example of the possibilities one has with MTN Mobile Money. Through our extensivedistribution network, we are able to reach many customers with this important product."

Mr Jeremy Leach, Head of Micro-Insurance for the Hollard Insurance Group, said: "The Hollard Insurance Group is committed to catalysing a positive and enduring difference in the low income market.

"The opportunity to partner with MTN Mobile Money to develop m-insurance is one of the most exciting initiatives Hollard has been involved in and will transform insurance in the emerging markets - making it relevant for the majority of people whom insurers have ignored.

"Whilst we have had considerable success in the low income market where we generate over $190 million in premiums in this segment alone, we believe this partnership will take the market to the next level".

The statement says the policies in Ghana are underwritten by Golden Life Assurance Company.