Mobile Network Operator (MNO) Netone has ventured into insurance through a strategic partnership with Champions Insurance that sees it introducing Easy Cover. The new product is aiming to cater for short-term mobile insurance needs of customers. Currently, Easy Cover product will insure customers on houses and legal representation from $1.50 in monthly instalments that are processed via the OneMoney mobile money platform.
This step by Netone could be a way of giving impetus to its OneMoney platform which they are desperately promoting so that they can compete better with Ecocash and Telecash. The MNO is leveraging its technology resources to make insurance accessible by allowing customers to insure their properties and legal representation using phones or computers.
By insuring houses, Easy Cover could be an appealing product to customers because many people are building houses in Zimbabwe and the existing insurance policies for houses by other insurance companies sideline many middle-income people since their policies are pricey for them.
Expensive legal fees and a lack of knowledge about legal practitioners who provide affordable legal representation fees has seen some Zimbabweans not being able to seek legal representation. Netone’s Easy Cover can be seen as a solution to an average Zimbabwean who needs legal representation.
Champions Insurance managing director, Tambudzai Madzivire mentioned that insurance policies for legal representation and properties are a taste of an array of products that will be introduced under the Easy Cover banner. This is could be a signal that in the future, Easy Cover will venture into mobile life insurance that is currently dominated Ecosure.
To incite an immediate influx of customers, Easy Cover has done away with a ‘waiting period’ before a person can get insured after the initial subscription. At face value, this means that a customer will start getting cover as soon as they register and pay their monthly instalment rather than waiting for a specific period.
Easy Cover could be a success if Netone and Champions Insurance developed a clear strategy and plan for this product rather than just imitating. A convergence of internal policies, short and long-term, is needful for this product to be a success otherwise they may have just created a cash-draining product that doesn’t add value to the organization.
OneMoney, formerly known as OneWallet, is a money transfer facility which is operated by a government telecoms company NetOne Zimbabwe. The facility runs on NetOne lines only and offers services such as Zimswitch-enabled debit card, money payments, mobile banking and airtime top-up.