Earlier this month, at the Inclusive Finance 2025 event in Luxembourg, the Microinsurance Network (MiN) – with the GSMA – launched a new report on growing microinsurance via mobile. Entitled “From Connectivity to Coverage: Scaling Resilience through Mobile-Enabled Microinsurance”, the paper builds on the experience of organisations that have used and are using mobile to cover vulnerable communities. Mobile technology has been used to distribute microinsurance and for associated payments for over a decade. This initiative is distinct: it marks the first time that the microinsurance sector has partnered with the mobile money space to explore growth opportunities.
“The GSMA’s 2021 report on microinsurance focused on frameworks and partnerships. Now, we’re seeing mobile money providers buying underwriters, and more use of embedded insurance and contextual selling.” Rishi Raithatha Former Director, Data and Insights – GSMA Mobile Money provider, and report co-author |
How this collaboration came about
The report marked the end of a year of exploring an opportunity for the MiN and the GSMA to spur more interest and growth in microinsurance among mobile money providers. For several years, each organisation had touched on what the other does best: the MiN on how mobile money is used for premium collection and claim payments, and the GSMA on how mobile could be used to improve distribution. Supported by the Government of Luxembourg, both organisations combined resources and existing work to develop recommendations for both sectors to consider.
“Innovation has driven growing engagements between the insurance and mobile industries. For the microinsurance space, this moment presents an opportunity for partnerships and product development collaboration.” Asier Achutegui Senior Manager – Microinsurance Network |
A brief history of the role of mobile in microinsurance
The first mobile-enabled microinsurance is thought to have launched in 2010 (via MicroEnsure). At the time, given the high emphasis on financial inclusion, the prevailing model was to offer free insurance to customers in exchange for a change in their behaviour. Once customers had had a chance to use insurance, often for the first time for most, some providers looked to move them to a paid model that offered greater cover. This is known as the “freemium” model. Most of these free models have since been replaced by paid-for products, which encourage collections via mobile money rather than airtime deduction.
“As a result of fewer freemium products, the number of people insured via mobile is significantly lower than when this model was first launched” Richard Leftley CEO – Wavu Limited, and primary contributor to the report |
While some customers did change their habits for freemium microinsurance, this behaviour typically lasted between six to nine months. Many customers simply reverted to prior transactional traits, which was commonly observed for other value-added services. At the time, this was part of the long-term issue: microinsurance was not given enough runway to prove its value as a financial product. Several freemium microinsurance products were launched by mobile network operators or mobile money providers, before being discontinued.
In some cases, selected mobile network operators and mobile money providers attempted to upgrade their freemium products by usingaverage revenue per user (ARPU) as an indicator, with targets set per customer based on their previous month’s transactional history. Customers could only earn insurance if they bought more airtime or used their mobile money account frequently, but these targets could change over time. Some models have persisted over time: a small number are still available today. However, fewer than 4% of mobile-enabled insurance products were distributed under the freemium model in 2025.
Rethinking value chain models and overcoming regulatory barriers
Many mobile money providers now see insurance as an important financial product to offer their customers. Stiff competition around payments and the growth of interoperability across many markets has prompted a need to expand adjacent services (credit, savings and insurance) into core offerings. This change in strategic focus means that mobile money providers are more likely to succeed as aggregators: they have a large customer base, a strong and trusted brand, and the ability to enable frictionless and affordable payments that can be paid in manageable instalments.
Box 1: How insurance is bought and not sold Among the different methods to sell insurance, three approaches remain prominent: embedded insurance, opt-in and opt-out. Embedded Insurance is compulsory for all customers making a transaction. For example, Safaricom’s Tuunza Mapato in Kenya allows taxi drivers and bicycle riders to get mobile connectivity, navigation, fuel discounts and embedded insurance for a monthly fee. The product covers medical costs, personal accident, funeral expenses and hospitalisation. Premiums are collected through automated bundle payments. Embedding in this way is popular with insurers as it allows many policies to be issued. However, customers may not always be aware of the product – this could affect their likelihood of claiming. Opt-out All customers are automatically enrolled for an insurance product, unless they make the effort to consciously opt out. Using an opt-out model can lead to about 90% of users making that particular transaction adopting the insurance product. However, many consumers may not be fully aware of the insurance product. Conversely, only a minority may opt out, especially if the insurance premium is low. Examples include GCash’s Express Send Scam Insurance in the Philippines, which protects customers from scams if they are tricked into transferring money to an imposter or buying from a fake seller. Opt-in Insurance is purchased voluntarily. However, this model often leads to low uptake: around 2-7% of consumers typically buy insurance voluntarily. This approach may lead to higher costs, due to the marketing costs required for active selling. A prominent example is BIMA, which sells standalone voluntary health and hospital cash insurance products to customers via its agents. Premiums are paid via mobile money, while policies remain valid unless three consecutive monthly payments are missed. |
Importantly, the report unpicks in detail the main barrier to scale in microinsurance: regulatory challenges. Among these, while several markets with high mobile money penetration allow recurring payments, regulatory restrictions limit this in many countries. In some cases, this has led mobile money providers to use third parties and other workarounds. However, collecting small and regular payments for insurance premiums is important for microinsurance services to succeed, especially for products sold via an opt-in model.
“Insurance products that tackle a core user concern can work well. As a long-time Nairobi resident, ride-hailing apps and bicycles are popular – but many are prone to accidents. Income protection insurance can cover transport workers in Kenya’s expanding gig economy.” Gianluca Storchi Data Manager – GSMA Mobile Money programme, and report co-author |
Why mobile money providers should look to Asia for new products
For mobile money providers or fintechs, Asia offers several examples of digital-first models. These approaches prioritise contextual selling and seamless integration with mobile money transactions. For instance, in Thailand, drivers and customers using Grab, a ride-hailing platform, can purchase insurance that covers lost earnings and the impacts of delays caused by flooding. In Pakistan, JazzCash offers travel insurance to customers purchasing long-distance bus tickets. The policy covers qualifying travel-related incidents, with claim pay-outs credited directly into the customer’s mobile wallet. Finally, in Singapore, Singtel Dash offers free life cover for deposits.
The report concludes with four strategic recommendations, which can be used to develop a roadmap for scaling mobile-enabled microinsurance:
Implementing these recommendations, or a combination of them, in a coordinated manner may lead to improved insurance uptake and resilience among vulnerable communities.
Click here to read the report in full.