As more digital microinsurance products become available to the underserved, health and life insurance remain among the most in-demand and issued policy types through mobile channels. The majority of these policies were issued in Sub-Saharan Africa and South Asia. Globally, the Middle East and North Africa (MENA) region has the fewest number of mobile-enabled insurance policies, followed by Latin America and the Caribbean. Most countries in the latter region are underinsured.
Given its population (655 million as of 2021, according to the World Bank), there remains a sizable untapped growth opportunity for insurance providers in Latin America – particularly for health insurance. Taking advantage of this potential are Inmedical and Tunajali – digital health microinsurance providers operating in several countries in Latin America.
Inmedical: using data to determine the frequency of service usage
Specialising in prepaid medical assistance for vulnerable populations in Bolivia, Ecuador and Paraguay, Inmedical’s model prioritises the use of analytics. The company uses behavioural data collected over several years, to estimate the extent to which medical services are likely to be used by a range of segments: age group, region, type of product and seasonal illnesses. Contracts with medical providers guaranteeing a minimum number of patients are based on these estimates, with policies distributed through microfinance institutions, brokers and, importantly, through a mobile app.
Inmedical, a MiN member, has used data to improve its product offering too. The contracts with medical providers are based on an agreed protocol on how patients should be diagnosed, following medical standards set by national and international authorities (e.g., World Health Organization and Pan-American Health Organization). Through this, Inmedical gains insights into usage rates for different types of healthcare services. In turn, this has allowed the company to refine its actuarial model and provide products without co-payments and deductibles. Information on how frequently a specific service is used means that the company can secure a competitive contract rate with healthcare providers.
“Inmedical aims to bring wellbeing to the world. We use technology to manage big data-based predictive models that allow us to provide services that cater for our clients’ health needs. Both for medical care and medicine delivery. Our approach involved forging partnerships with medical providers, without neglecting the quality of their service.” Andrea Herrera Project, Innovation, and Quality Manager at Inmedical |
Tunajali: Using design thinking to develop customer-centric products
Tunajali is a partnership between Barents Re, a reinsurance company and MiN member and Ubedoo LLC, a US-based organisation that develops support programmes in emerging markets. Based on the Swahili word for “we care about you”, Tunajali is a digital insurance provider that offers mobile-enabled health insurance. Tunajali’s product provides hospital and oncological protection (cover against cancer). Its policies also include a second medical opinion and remote nutritional and psychological counselling – key differentiating factors.
Good customer experience is at the heart of its offering. Policy information is laid out in clear language on its website. Users can purchase policies digitally and only need to provide their contact details and those of their beneficiaries. Once a customer purchases a policy, Tunajali will call them to explain the policy’s terms and collect additional information as required by the regulator. Claims are typically paid out within 48 to 72 hours.
Spotlight on Tunajali’s pilot in Paraguay In February 2020, Tunajali launched a pilot in Paraguay. Around 80% of the country’s population has access to mobile internet, though only half of the adult population is financially included. Still, the company saw potential in Paraguay as cancer is a significant health concern and health insurance uptake is low. The pilot made significant progress, showing potential for health insurance to scale: Premium charged: USD 1 per month Policyholders targeted: 10,000 Unique website visitors: 25,000 Policy requests received: 3,700 Due to the COVID-19 pandemic, Tunajali’s hospital cover product was adapted to include treatment for COVID-19 – a move contrary to what many insurers did worldwide. As a result, the company managed to reach even more customers than expected. |
Inmedical and Tunajali designed their products based on the results of market analysis across their markets:
Though both companies have different approaches to product design, their use of digital technology allows users to access treatment fast and in an affordable way. This can be beneficial for a region where insurance penetration remains low.