By Theckla Gunga EMTV Port Moresby
Papua New Guinea has become the first country in the Pacific Region to establish a Mobile Micro-Insurance service.
This service will see people saving money for health and life insurances through the use of mobile phones.
It was jointly launched in Port Moresby by the Bank of Papua New Guinea, and other developing partners. This service will be rolled out in the Highlands region beginning with Mount Hagen.
The decision to start the program in the Highlands was justified by BPNG Governor, Loi Bankani, and other development partners, as the region is home to over 50 per cent of PNG’s population, and almost all its provinces have undergone some form of financial education training, since 2013.
The service will be executed through BIMI, an emerging mobile insurance company already operating Africa, Asia and Latin America.
The service will be targeting low income earners in remote PNG, and is desired to give people access to basic financial education on the importance having a health and life insurance.
The joint partnership’s objective is to reach 75 000 people in PNG by 2019, half of this figure must be women.
The life insurance will cover death and funeral expenses, while the health insurance will pay for hospital fees, depending on the different cover levels.
It is a public private collaboration looking at minimising the burden of compensation and funeral costs during death.