NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Tuesday, December 2, 2014

Bima, the leading global microinsurance provider, announced a 5 million USD investment from Digicel Group, the leading total communications and entertainment provider in the Caribbean, Central America and Asia Pacific regions. This investment and the resulting partnership will help Bima to deliver access to affordable insurance on a scale never seen before in those regions.

The market opportunity for microinsurance in Asia Pacific and the Caribbean is vast, with insurance penetration at less than 7% (as a percentage of GDP). Bima’s success is based on overcoming barriers to entry for the mass-market through the development of simple and affordable products as well as innovative modes of distribution. The company already has successful operations in 11 markets across Africa, Asia and Latin America, and Digicel’s investment will provide resources and insight to help Bima rapidly build its presence in these new regions.

The partnership has already launched two regional operations, in Haiti and Papua New Guinea. Both markets leverage Bima’s expertise in mobile-delivered insurance, wherein customers can pay for insurance cover via their prepaid airtime. This model provides a safe and trusted route for customers to register and pay for valuable insurance protection. Digicel customers in Haiti and Papua New Guinea can now register for paid life insurance products for a few USD cents per day, with claims paid within 72 hours of submitting the necessary paperwork.