How BIMA is Reshaping the Concept of Insurance in Pakistan - Android

Pakistan has had a huge financial inclusion divide for long. Over half of its adult population still goes without a… Read More

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Pakistan has had a huge financial inclusion divide for long. Over half of its adult population still goes without a formal bank account.  This denies them some basic advantages that the formal financial ecosystem has to offer. One key disadvantage of being financially excluded is having no access to any kind of insurance including health insurance, which means if the worst should happen people don’t have a financial safety net to rely on.

Insurance is used worldwide to safeguard against a wide range of events including, ill health, or personal accidents. Yet, traditional insurance companies have struggled to service lower-income customers because of these main barriers: low levels of knowledge and trust in financial services, high distribution costs, and critically the lack of suitable payment channels.

Traditional insurers tend to focus on high-income customers as their current structures make it difficult for them to serve lower-income segments. In particular, as these players usually have heavy and costly organizational structures, they lack the flexibility to build the required capabilities to develop products that just cost a few dollars per month and that will generate low margins.

Microinsurance initiatives have been introduced over the years to address the challenges of affordability, financial literacy, and trust but after two decades insurance penetration in emerging markets remains at just 3%. These initiatives failed to scale because they neglected to tackle the largest barriers to sustainability: creating an accessible distribution channel and an effective recurring payment process for unbanked consumers.

Through its mobile-delivered insurance model, underpinned by strategic partnerships with large telecom businesses and its global agent force, BIMA has been able to achieve scale, remove high distribution cost as well as provide an effective recurring payment channel for the unbanked.

By leveraging mobile technology, BIMA is providing protection against unforeseen mishaps (accidents and illness) which can break, often beyond repair, the already tight budgets of most of the people in today’s tough economic climate. This is especially true for the developing world.

BIMA is leading the global microinsurance charts

An estimate by Swiss Re – a world-leading reinsurance company based in Switzerland – says that 4 billion people around the world can benefit from insurance by paying a small premium of 60 cents / PKR 96 a month on a rolling basis for health or life insurance.

BIMA’s affordable products, charging as little as PKR 2 a day, it’s giving access to health and life insurance solutions to the masses the world over, including Pakistan.

Currently, anyone with a Jazz number can register for BIMA’s mobile-delivered insurance policy and get covered for health and accidental death cover along with access to telehealth services 24/7 for themselves and their family members. For the accidental loss of life, a potential payout can be a maximum of PKR 2.5 Million.

“In Pakistan, the masses don’t have easy access to health insurance let alone telehealth services,” shares Murtaza Khalil Hassan, CEO BIMA Pakistan. “Although we have made strides thanks to government-run programs like the Sehat Sahulat Program, health insurance, and doctor consultations are still far from being universal.

“BIMA makes it possible for any mobile user with a Jazz connection to purchase a low cost but high-value insurance product that not only provides them health insurance cover but also round the clock access over a call to PMDC qualified doctor. BIMA would also like to further support the government in its efforts to improve access to affordable healthcare,” Murtaza adds.

Only 3% of people in all of BIMA’s global markets have insurance today. BIMA enables one price for the market, and the scale of mobile technology helps them achieve it by eliminating the costs of conventional insurance and adding efficiency in the process, allowing more people to register with ease.

BIMA Pakistan – country’s emerging microinsurance provider

With more than 4 million customers in Pakistan, BIMA’s Pakistan chapter is leading the local mobile-delivered insurance landscape. Last year, a woman in Pakistan was paid a claim of PKR 2,300,000/- when her husband, the sole breadwinner for his wife and 6 children, passed away in a tragic road accident. The payout allowed her to help with the education of her children so they can have a bright future and become contributing members of society.

“It was a tragic moment for us to lose our father,” shares Muhammad Aqib Khan, another BIMA beneficiary. “In such situations, any sort of help means a lot. I’m thankful to BIMA for providing protection in a very simple and easy way. I have received claim amount for funeral expenses sitting at my home via mobile wallet account,” he adds.

I’m grateful that I have taken the right decision to have BIMA insurance,” shares Shahid Mehmood. “I met with an accident and was hospitalized for seven nights at Allied Hospital, Faisalabad. BIMA supported me in my critical time with easy process and online payment. I have recommended my family and friends to opt for BIMA’s insurance policy,” he adds.

BIMA Sehat – market-leading telehealth insurance

BIMA launched a new product to the Pakistan market in 2018, to provide customers with 24/7 access to doctors, home delivery of discounted medicines, discounts on lab tests, and coverage for hospitalization expenses through its product called BIMA Sehat. 600,000 vital health consultations have taken place since the inception of BIMA Sehat.

BIMA has revolutionized the healthcare and insurance industry in its markets including Pakistan. In just 10 years it has reached over 35 million people in Asia & Africa. Currently, more than 4 million Pakistanis are insured with BIMA Mobile. By partnering with Mobile Network Operators (MNOs) and insurance companies, BIMA is scaling up insurance services that are affordable and accessible to everyone in Pakistan.

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