Original text here from Patrice Bernard (LinkedIn)
While the news isn't exactly hot off the press, I recently found out about OpenInsur thanks to its selection as the innovation of the month by Qorus. Launched in 2022 by AXA, OpenInsur isn't about open insurance per se, but introduces a fresh approach to the "physical" distribution network.
Starting its gradual rollout in Senegal, Ivory Coast, Cameroon, and Gabon, the initiative currently focuses solely on car insurance and targets the African continent. Here, online insurance enrollment is not yet a common practice, and the human touch remains crucial in transactions—yet, scaling this interaction is challenging due to limited physical presence across the region.
Rather than expanding traditional, costly physical locations, AXA opted to adopt a strategy similar to the one Uber used to disrupt the taxi industry. This involves developing a mobile app and hiring independent agents. Anyone looking for extra income through commissions can apply, and upon acceptance, must complete a training program before they start selling products.
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The goal is to bring insurance services closer to customers—both geographically and culturally—without significant investment, particularly in real estate. Agents work remotely, using their phones for everything needed, such as initiating or renewing policies (via a photo of the vehicle registration document), and issuing proof of insurance. However, their affiliation with an official agent helps avoid competitive conflicts.
In this way, OpenInsur is reminiscent not just of Uber, but more so of the mobile wallet M-Pesa, which serves a similar role in banking. The enormous success of M-Pesa could inspire confidence in its application to the insurance industry, though, 15 years apart, one might question the continued need for face-to-face interactions in these services (and I’m not even sure the network of operators in the Kenyan system is still as vital).
Regardless, the company has plans to extend its concept further. Beyond handling additional services like claims reporting, it aims to adapt this model to other segments, such as health insurance and SME guarantees. This approach not only has commercial value but could also play a significant role in social inclusion and improving the welfare of rural populations.
