The winner of this month’s Qorus Innovation in Insurance award is Open Insur by AXA Assurance Maroc, a groundbreaking solution based on the ‘uberization’ of retail distribution.
Innovation knows no bounds, especially when it comes to transforming traditional business models into dynamic, cost-effective solutions. With its ingenious approach to retail distribution, Open Insur is disrupting motor insurance in Africa, offering a gateway for exponential growth without the burden of extending proprietary physical distribution networks.
At its core, Open Insur embodies the concept of the ‘uberization’ of retail distribution, leveraging a network of mobile agents connected to master agents. This unique business model not only densifies the capillarity of the distribution network but also accelerates time to market, tapping into affinity cultures to boost retail sales. While initially focusing on the lucrative motor insurance segment, the solution is scalable for other products such as health and SME insurance, as well as processes like claims reporting.
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The rationale behind this innovative initiative stems from AXA's strategic positioning and market insights. While the insurer has excelled in the commercial lines segment, the retail market in Africa remains largely untapped, representing significant growth potential. With motor insurance leading the charge in terms of growth and profitability, AXA recognized the need to strengthen its territorial footprint and diversify its portfolio.
Yet, traditional methods of network expansion posed considerable challenges, including time constraints and high costs. External growth opportunities were limited, necessitating a shift towards a more agile and scalable approach. Enter Open Insur, offering a solution that not only addresses these challenges but also aligns with the digital imperative reshaping the insurance landscape in Africa.
Since its gradual launch in 2022, Open Insur has witnessed impressive results. The network has expanded exponentially, with the total number of agents growing fivefold. This growth trajectory has translated into tangible financial gains, with significant increases in GWP and profitability metrics.
Overall, this initiative by AXA represents an ingenious, low-cost solution enabling the insurer to significantly expand its distribution network abroad, and an excellent ROI. By embracing digital innovation and community-centric approaches, it offers a promising strategy for sustainable growth in the African insurance market. That is why we chose Open Insur as Innovation of the Month for March.
Because it won Insurance Innovation of the Month, this project will automatically be nominated for the Qorus Innovation in Insurance Awards 2024. Submit your project by April 3, 2024 for a chance to win the Insurance Innovation of the Month for April.
