Micro insurer BIMA and Pi Pay, a mobile payment solution firm, on Friday signed a memorandum of understanding that aims to increase access to affordable insurance products to underserved communities.
The new partnership allows customers to pay for BIMA products through cashless payment via their Pi Pay accounts.
“We want to make it as easy as possible for people to use our products. This collaboration enhances customers’ access to methods of payments that suit their needs,” said Kim Tol Am, BIMA Cambodia CEO.
BIMA Cambodia offers life and personal accident insurance, among other products. “This partnership will allow more customers to sign up for these services,” Ms Tol Am said.
She said the company has already reached more than 500,000 customers and paid over $1 million in claims since entering the local market in 2014.
“By innovating our model and partnering with new payment services, we will be able to achieve scale while also providing financial education to people who may not understand the value and importance of insurance,” she added.
Founded in 2010 and based in Stockholm, Sweden, BIMA offers mobile-delivered insurance services and has operations in 13 markets across Africa, Asia, and Latin America. It has a total of 31 million subscribers.
The micro-insurance firm targets customer living on less than $10 a day. Monthly premiums in the Kingdom start as low as $1 per month.
Tomas Pokorny, Pi Pay CEO, said the collaboration will help expand the reach of life insurance in Cambodia.
“Pi Pay customers can now also access BIMA’s insurance products through the platform,” he noted.
There are now seven micro-insurance firms operating in the country. Total gross premium reached $196.4 million last year and it is expected to reach $260 million in 2019.