Reaching new consumers
Reaching new consumers
André Dreyer, VP, Ventures & Acquisitions, RGAX
We talk a lot about our purpose: to make financial protection accessible to all. We’re constantly looking for new ways to reach underserved populations by using innovative products and distribution channels to ensure that people have the financial protection they need. André Dreyer, Vice President, RGAX, digs into one success story where an embedded life insurance product has successfully reached more than a million people across multiple underserved African markets.
Embedded insurance is nothing new – we’re all familiar with the option to buy insurance for a mobile device at the point of purchase or a policy for collision insurance when renting a vehicle. This approach is currently less common in the life and health insurance space, but carriers are increasingly uncovering opportunities to reach new customers.
The innovative potential of embedded insurance is particularly valuable when looking at the relatively low insurance penetration in many emerging markets. In these markets, it is vital to meet consumers where they are, offering solutions and benefits at the right price point and adding value without distracting from the customers’ main purchase. In this way, buying insurance can become a more integral part of everyday life and bring financial protection to more people.
In 2015, RGA partnered with Inclusivity Solutions, a digital insurance provider based in Cape Town, South Africa. Its founder, Jeremy Leach, had approached RGA to help achieve his vision of providing cover to underserved markets through mobile networks. It’s a simple yet brilliant idea – the development of embedded insurance that is purchased as part of the mobile phone airtime or data top-up or the contracting process. More than a million people across Africa have used the product so far, and Inclusivity Solutions plans to expand its offerings into other emerging markets around the world.
How it works in practice
Inclusivity Solutions’ products are offered through WhatsApp and through the Unstructured Supplementary Service Data (USSD) technology on all mobile phones, and they are available as either free loyalty cover or higher-value cover at a premium.
By spending a small, set amount per month on airtime for as little as $1 per month, consumers can receive a cash payout for every night spent in the hospital if they are hospitalized for three nights or more. The program also helps educate users about life insurance.
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