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PROMISING STARTS IN MOBILE MICROINSURANCE: TIGO SENEGAL & TELENOR PAKISTAN INSURANCE MADE FOR THE MASS MARKET: TIGO & BIMA IN SENEGAL
Establishing a foundation with a “freemium” model
An important element of Kiiray’s product design is a “freemium” approach. Customers who spend a minimum amount on Tigo’s GSM Dedicated agents,
network are given a modest level of free life insurance cover, but can opt into a paid version with additional cover. Eligibility for free
cover requires spending at least 1,500 CFA francs (US$3.13) in a given month on Tigo’s network, which provides CFA 60,000–300,000
($125–$630) in life insurance cover. If the customer stops using Tigo’s GSM services, they lose Kiiray coverage. For the premium paid ver- high-quality
sion, CFA 330 ($0.69) is automatically deducted from the customer’s airtime account in small increments over the course of a month in
exchange for twice as much life insurance cover. Tigo and Bima have recently begun enrolling subscribers in the premium paid version by
default, though these subscribers can still earn free cover if they choose not to pay their premiums in a given month. engagement
A n old industry adage states that insurance is sold, not bought. Very few people wake up in the morning and say, “I need to buy
insurance today,” but many do wake up realising they need to draw a loan or pay a bill. The task of convincing a customer that
today is the day to buy insurance generally falls to a sales agent. In countries where insurance penetration is low and custom-
ers are unfamiliar with the benefits of insurance, a high degree of customer education must accompany the sale. The sales process,
therefore, is about more than selling; it is equally an insurance tutorial.
Tigo’s operational partner, Bima, specialises in the go-to-market aspects of insurance rollout, and took three steps aimed at building the
capacity and skills of its sales force.
Step 1: Build a roving sales force
Bima manages a sales force of roving agents, “mobile agents”, who educate and register Tigo Kiiray subscribers. Bima’s sales model is
unique in a few respects:
1. Mobile agents are paid a fixed salary, rather than a commission. Bima believes this compensation scheme has three main benefits.
First, a fixed salary offers greater financial security and increases personal investment in the job, allowing agents to take their
customer education role seriously and spend as much time with the customer as necessary. Second, it reduces the risk of agents
mis-selling or pressure-selling the product, which helps to protect Tigo’s brand in the market and builds public trust in insurance
products. Third, fixed compensation reduces turnover and allows Bima to invest more in training.
2. Bima invests heavily in training. Every new mobile agent goes through a three-hour training session and a one-week apprentice-
ship with a team leader. Follow-up training sessions are routine; one recent weekend workshop included a session by the Tigo
Customer Care manager on handling customer queries and an insurance primer from underwriter UASen.
SALES AGENT EXPLAINS THE KIIRAY PRODUCT TO A TIGO SUBSCRIBER “We want [the mobile agents] to feel they are part of the company, rather than doing a contract job. Building a company culture and
extensive training are both important parts of our sales agent model.”
Gustaf Agartson, CEO, Bima
8 9
Establishing a foundation with a “freemium” model
An important element of Kiiray’s product design is a “freemium” approach. Customers who spend a minimum amount on Tigo’s GSM Dedicated agents,
network are given a modest level of free life insurance cover, but can opt into a paid version with additional cover. Eligibility for free
cover requires spending at least 1,500 CFA francs (US$3.13) in a given month on Tigo’s network, which provides CFA 60,000–300,000
($125–$630) in life insurance cover. If the customer stops using Tigo’s GSM services, they lose Kiiray coverage. For the premium paid ver- high-quality
sion, CFA 330 ($0.69) is automatically deducted from the customer’s airtime account in small increments over the course of a month in
exchange for twice as much life insurance cover. Tigo and Bima have recently begun enrolling subscribers in the premium paid version by
default, though these subscribers can still earn free cover if they choose not to pay their premiums in a given month. engagement
A n old industry adage states that insurance is sold, not bought. Very few people wake up in the morning and say, “I need to buy
insurance today,” but many do wake up realising they need to draw a loan or pay a bill. The task of convincing a customer that
today is the day to buy insurance generally falls to a sales agent. In countries where insurance penetration is low and custom-
ers are unfamiliar with the benefits of insurance, a high degree of customer education must accompany the sale. The sales process,
therefore, is about more than selling; it is equally an insurance tutorial.
Tigo’s operational partner, Bima, specialises in the go-to-market aspects of insurance rollout, and took three steps aimed at building the
capacity and skills of its sales force.
Step 1: Build a roving sales force
Bima manages a sales force of roving agents, “mobile agents”, who educate and register Tigo Kiiray subscribers. Bima’s sales model is
unique in a few respects:
1. Mobile agents are paid a fixed salary, rather than a commission. Bima believes this compensation scheme has three main benefits.
First, a fixed salary offers greater financial security and increases personal investment in the job, allowing agents to take their
customer education role seriously and spend as much time with the customer as necessary. Second, it reduces the risk of agents
mis-selling or pressure-selling the product, which helps to protect Tigo’s brand in the market and builds public trust in insurance
products. Third, fixed compensation reduces turnover and allows Bima to invest more in training.
2. Bima invests heavily in training. Every new mobile agent goes through a three-hour training session and a one-week apprentice-
ship with a team leader. Follow-up training sessions are routine; one recent weekend workshop included a session by the Tigo
Customer Care manager on handling customer queries and an insurance primer from underwriter UASen.
SALES AGENT EXPLAINS THE KIIRAY PRODUCT TO A TIGO SUBSCRIBER “We want [the mobile agents] to feel they are part of the company, rather than doing a contract job. Building a company culture and
extensive training are both important parts of our sales agent model.”
Gustaf Agartson, CEO, Bima
8 9
