What we can learn from insurance distribution in Africa

Jimmy Williams
Aug 25, 2017 · 2 min read

Inspired by our time at the Reading Spots charity dinner last night, I thought I’d share a fun, and quite insightful story about insurance from our travels in Africa.

If you’re travelling in your own car, you obviously need to buy insurance in each country you visit, and Zambia has a particularly quirky method of distribution.

All the major insurance brokers primarily sell cover from the back of branded mini vans. You can find them in the car park of any motor traffic bureau, border post, or large shopping mall. Of course, ‘offices’ can easily be moved to match changes in demand.

The vans are very comfortable, with customised seating so you can sit facing your agent, and they’ll always turn the engine on when you arrive so that you can cool off in the air conditioning.

You can get a quote with only 3 underwriting questions (3rd party or fully comp? Car, 4x4 or Truck? 1,3,6, or 12 months?), and the vans of all the competitive companies are always parked next to each other, so you can compare quotes in a couple of minutes.

It seems like insurance is a very pious profession in Zambia. It’s rare that the vans don’t have a few crosses hanging up, and a bible lying around, but I somehow suspect that this is more about encouraging you not to lie when you fill out the insurance form.

Once you’ve filled out the short handwritten form, the agent has full binding authority; you pay up in cash, the bottom of the application form rips off to become your insurance certificate, and you get a nice little dash sticker to show to the police that you’ve got your cover sorted.

So, despite the quirky methods, and the complete lack of technology involved, Zambian insurance brokers deliver a quick, convenient and pleasant insurance buying experience, whilst obviously playing due mind to the fraud risk.

I’d really love to re-create that quality of experience in the digital world. I think it will take us a while, but we’re on our way…

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Jimmy Williams

Written by

Co-founder & CEO of Urban Jungle insurance.