As part of a series of case studies commissioned by FinMark Trust, Bankable Frontiers Associates (BFA) and Cenfri conducted a rapid assessment of the market and regulatory landscape for mobile microinsurance (m-insurance) initiatives in Zambia.
This paper builds on two previous case studies investigating the rise of m-insurance (i.e. microinsurance sold through mobile phones) in Zimbabwe and Tanzania. These studies highlighted that while m-insurance initiatives have the potential to enhance access to insurance, they presents unique risks which, if not adequately addressed, can have negative consequences for financial inclusion and market development. The case studies also proposed a risk assessment framework to assist regulators in assessing the validity and sufficiency of new m-insurance initiatives in their markets.
Using Zambia as a third case study, the paper outlines the challenges and risks in the market that require further investigation by regulators, policymakers, and other relevant stakeholders.
Please click here to download the study on Managing risk while facilitating innovation: the case of m-insurance in Zambia (PDF, 0.67MB)
Zambia is one of nine countries in Sub-Saharan Africa with more registered mobile money accounts than bank accounts (GSMA, 2013). Although there are four m-insurance initiatives in the market, only one has reached scale. The paper found that a lack of clarity on the responsibilities of the parties involved in the provision of m-insurance, as well as regulatory uncertainty, were key risks in the m-insurance market. The Zambian case therefore provides an opportunity to understand the obstacles to growth in m-insurance, as well as the possible regulatory solutions that can be put in place to address these obstacles.