The quest for sustained mobile-driven innovation in Africa has yielded interesting results in recent times. Mobile banking has received widespread acceptance across the continent and this is spurring similar innovations powered by the mobile technology. One recent innovation is the funeral assurance scheme launched by Econet Wireless in Zimbabwe.
Dubbed EcoSure, the scheme replaces an earlier unsuccessful initiative, EcoLife, which was terminated in 2012. This innovative scheme has been enabled by the popularity of mobile services in the southern African economy and fueled by ongoing efforts by mobile operators to tap into the banking and insurance sectors in Zimbabwe via the provision of technology platforms that enhance financial inclusion and serve the uninsured and unbanked.
The service, according to Godwin Mashiri, Eco Sure General Manager, offers affordable and readily accessible funeral cover as registration can be done via mobile phones. The service offers two pay out options in the event of death, either through nominating a relative who will receive the money in their EcoCash account or through a chosen service provider.
To enable an effective roll out, Econet Wireless has partnered with 7 service providers including big brands such as Nuffield, Doves, Fidelity and the top three service providers from Bulawayo, an industrial city in Southwestern Zimbabwe. Still engaged in negotiations with other service providers, the firm has employed 500 agents who will be responsible for facilitating claims.
Econet discontinued EcoLife, its first venture into the insurance sector, in 2012. The service had amassed a whopping 1.2 million customers before its termination, thus indicating the potential for success of a similar business. The service had allowed Econet’s subscribers to get free life cover on minimum airtime of only $3 per month. No monthly premiums were required unlike conventional insurance schemes.
With this new service, Econet hopes to grab a significant share of Zimbabwe’s growing insurance industry. BusinessMonitor reports that gross premiums have gone up by 350 percent over a four year period ending 2014. With $500 million expected to be realized by the end of the year, its return to the insurance business may be a very timely move.
By Emmanuel Iruobe
