Milvik Mobile, the wholly owned subsidiary of Milvik AB, Sweden, was recently given a license by the SECP (Securities and Exchange Commission of Pakistan) in order to offer its mobile insurance services in Pakistan. This development is significant since it marks the entry of the first mobile technology based insurance distributor in the country.
The company is currently operating under the name of Bima Milvik AB, providing potential customers with a bevy of micro insurance services straight from your mobile phones. This development is beneficial for the low income target market since the benefits of technology are being passed over to this oft-neglected social demographic.
Mobile micro insurance offers an alternative to low income people by featuring low premiums and low coverage limits on the insurance products
The average low-income individual can’t afford the high fees associated with insurance products. Mobile micro insurance offers an alternative by featuring low premiums and low coverage limits on the insurance products. This makes them attractive as compared to the social or commercial insurance schemes on offer.
Currently Milvik AB is operational in countries such as Bangladesh, Sri Lanka, Ghana, Indonesia, Tanzania, Mauritius and more. It enjoys good success in these territories and wants to replicate its success in Pakistan as well.
The purpose of Milvik AB is to empower local operators to offer financial services to those who need it the most. The insurance products are custom-tailored for low income subscribers and that too without bearing much of the risk.
From an economic point of view, this we products can let mobile operators and partners to enhance their ARPU (average revenue per user). This can also be beneficial in customer acquisition and upholding consumer loyalty.