MicroEnsure to Offer Microinsurance in Kenya Using M-Pesa, FrontlineSMS:Credit Technology

The Kenyan office of MicroEnsure, a subsidiary of US-based microfinance network Opportunity International, is employing M-Pesa, a mobile money service in Kenya, and FrontlineSMS:Credit, a nonprofit software provider specializing in mobile financial services, to offer microinsurance policies independent of savings and credit groups. Microinsurance is often packaged with other microfinance services to take advantage of existing distribution channels to reduce operation costs. Ms Kate Waiganjo, country manager for MicroEnsure Kenya, explains that the use of mobile technology is expected to make this standalone microinsurance feasible. The model involves using M-Pesa to collect premium payments and FrontlineSMS to monitor individual policies in real time. The product will allow individuals to increase or decrease their levels of coverage as and when needed. MicroEnsure provides insurance services to approximately 3.5 million poor clients in Ghana, India, Bangladesh, Mozambique, Malawi, the Philippines, Tanzania and Kenya as of 2011.