CIC has introduced a new technology platform called M-Bima (mobile insurance in Kiswahili) to strengthen the scale and efficiency of its microinsurance operations. The platform uses a money transfer service such as M-PESA for the collection of premium. M-PESA is currently used by more than 15 million people in Kenya to store and transfer money. The M-Bima platform can be also used for customer relationship management functions such as checking account balance, sending reminders or educating clients through mobile phone applications and a call centre. In the future, the platform will allow direct sales for all microinsurance products.

The first product, launched in 2011, on the M-Bima platform was Jijenge Savings Plan. The product provides clients with a convenient and safe way to build savings. It is a 12-year endowment plan with monthly installments of minimum Kshs 600 for a minimum cover of Kshs 50,000. The product combines savings with life insurance.  There is a three-month waiting period for natural death, and no waiting period for accidental death. An exit benefit is available at the end of the third year with a surrender value of Kshs 20,000. Clients can save on a daily basis using M-PESA and receive SMS reminders to stimulate savings.

M-Bima products are distributed through retail channels and direct sales. This is a new distribution approach for CIC, compared to the partner-agent model used previously. Distributors have access to an menu-based information services protocol used by mobile phones to communicate with CIC system.

The project will support CIC to strengthen and monitor its marketing and evaluate its new distribution strategy.

Some of the key challenges expected in the project are:

1. Persistency: The sustainability of the product depends on creating incentives to save regularly, which is a challenge for a market with irregular cash flows. A comprehensive marketing strategy will be developed to address this challenge.
2. Retail distribution model: Success depends on the value proposition for retailers as well as the approach taken to select, train, incentivize and monitor sales force, which is managed by retail distribution networks. 
3. Managing third parties: CIC will partner with various mobile phone service providers, systems vendors, advertising agencies and community-based distributors; should the relationship with any third party fail, there is a risk of not delivering what was promised to the client.
4. Technology redundancy: There is a risk of the technology being rendered obsolete due to the dynamic nature of the technology sector.