Dialog Axiata PLC
Contact person: Chinthana Jayasekara
Email address: Chinthana.Jayasekara@dialog.lk
Contact number: 0094777331271
Asia and ANZ
The Digital Insurer Insurance Innovation Award
Dialog Axiata PLC, a subsidiary of Axiata Group Berhad (Axiata), operates Sri Lanka’s largest and fastest growing mobile telecommunications network. Dialog introduced a low premium based mobile micro insurance service that has completely redefined the insurance industry in Sri Lanka and is currently the largest insurance distributor, surpassing over 4 million subscribers in Accident, Hospitalisation and Life covers, in partnership with the largest insurers in Sri Lanka.
With a population of over 21 million, 40% of Sri Lankans fall into the lower income category with a higher dependency on daily wage employment and an increased involvement in high risk jobs. As the world insurance market grows exponentially, with innovative offerings and protection schemes, Sri Lanka shows very slow progress in comparison to its peers in the South Asian region.
In the year 2015, insurance penetration in Sri Lanka (based on premiums) marked only 1.1% in the local financial market and only increased to 1.2% as a percentage of GDP in the year 2016, slow growth compared to neighbouring regions. This low penetration in the Sri Lankan insurance market can be attributed to a lack of awareness among the public in terms of the increased importance and benefits of owning a successful insurance policy. Additionally, insurance is considered a “luxury product” due to high premiums charged by traditional industry players. Policy holders more often consider the premium paid at the end of the month a “burden” as they do not fully utilise the amount paid unless a death or accident occurs.
The mismanagement and inefficiencies in policy management can also be a cause for the low insurance penetration in Sri Lanka. Insurance companies collect premiums through their islandwide outlets and customers visit outlets to pay the premiums. Though insurance companies have setup online methods, majority of the policyholders still prefer to pay by visiting the insurance outlets as they are not comfortable with using online methods.
An Innovative Solution by Dialog
To counter the above mentioned problems faced by the insurance industry, Dialog introduced an innovative solution for insurance distribution and the collection of premiums, leading to a period of leap growth in the market.
With a vision to “be the undisputed leader in the provision of multi-sensory connectivity resulting always, in the empowerment and enrichment of Sri Lankan lives and enterprises”, Dialog ventured into mobile micro insurance by partnering with the largest insurance companies in Sri Lanka, namely Ceylinco General, Fairfirst Insurance and Softlogic Insurance, to offer insurance services at an affordable price point and conveniently to all Sri Lankans.
This mobile technology solution was identified to increase adoption by developing an inexpensive, flexible and easy to register insurance service, enabled by a trusted mobile operator. For only Rs. 1 a day (less than 1 cent USD), every Sri Lankan can get an insurance cover of Rs. 1 million (6,500 USD) irrespective of their income level.
Dialog Mobile Micro Insurance has eliminated traditional insurance barriers in the market by introducing a mobile based registration process for coverage, which takes ONLY 3 minutes, converting the previous tedious process to a convenient one, using a familiar method of activation via USSD code.
The Dialog Accident Cover, Dialog Hospitalisation Support Plan and Life Cover have been the first in Sri Lanka, as they offer the most affordable and comprehensive insurance on a daily payment plan that can be purchased by any Sri Lankan with a Dialog connection. It is truly unique in pricing, generosity and product features.
Unique Benefits Offered Through This Innovative Solution
• Fast registration: the registration process takes only 3 minutes on any type of mobile phone without any documentation. One of the fastest insurance registrations in the world.
• Partial covers: if customers have less than the monthly premium on their phone, the cover is apportioned accordingly.
• Easy claim process: a dedicated hotline to handle claims with no physical documentation required, as all documents are handled through social media for increased.
• Payment flexibility: to optimise Sri Lanka’s insurance inclusion, the premium is charged daily to increase the likelihood of successful deductions.
• Life Cover: the only cover in Sri Lanka which covers the customer for up to 70 years of age, with preexisting illnesses. Additionally, suicide is covered after one year.
• Family inclusion: for hospitalisation coverage, customers have the option of including their spouse and children in policy.
• One-to-one sales: a personalised approach via a trusted channel of agents in the field and at call centres.
The standard premium for equivalent products in the market is 5 times higher for accidental insurance and 6 times higher for medical. Dialog products are considered breakthroughs in the industry, bridging the gap by giving low-income Sri Lankans access to affordable insurance whilst educating them on the importance of financial security for their family.
Dialog’s presence in the digital insurance sphere continues to grow with its subscriber base surpassing 4 million in all insurance services. With insurance penetration in Sri Lanka remaining low, Dialog’s mobile insurance products are considered the most viable and affordable options, in terms of reaching the Sri Lankan masses.
The Mobile Micro Insurance service has redefined the insurance industry by addressing an untapped market of lower income earners who have a higher dependency on daily wage employment and are involved in high risk jobs.
The Dialog Accident Cover has secured more than 1.75 million registrations in 2017 and has attained a YoY growth of 20 %. In 2017, accident cover claims paid were amounted to more than LKR 27 million (USD 175000). 1.6 million policies were secured by the Dialog Hospitalisation Cover and the claim paid out amounted to over LKR 18.5 million (USD 123000) contributing to a growth of 20% YoY. The Dialog Life Cover was launched in October 2017 and included senior citizens up to 70 years of age with preexisting illnesses, hitting a subscriber base of over 200,000 to date.
By understanding the Sri Lankan market environment and coupling mobile technology with a unique offer, Dialog has been instrumental in shaping the country’s insurance landscape by providing covers to over 4 million people and paying out claims worth over LKR 500 million in the last 5 years.
These tremendous results showcase the trust and confidence placed by customers in Dialog as the company took on the responsibility of improving and enriching Sri Lankan lives, by providing an innovative solution for the insurance industry.
“We have provided peace of mind and security to a segment of society that had no access to insurance services in the past”.